The dispute betweenMTNNigeria and the Central bank of Nigeria has been resolved as both parties agreed to a $53m settlement. The telecommunications giant settled the dispute with a $53 million payment, the company said in a message posted on Twitter on Monday.
Nigeria’s central bank had said $8.1 billion in dividends paid by MTN Nigeria to its parent company between 2007 and 2015 and sent back to South Africa were illegal and should be returned.
While the CBN had accused MTN of illegally transferring the funds out of the country, MTN denied any wrongdoing.
“MTN resolves Nigeria dividend issue, makes $53m payment, engaging with banks regarding the agreement,” it said on Twitter.
Terms of settlement
MTN Nigeria is to implement a notional reversal of the 2008 private placement of shares in MTN Nigeria at a net cost of circa N19.2 billion – equivalent to US$52.6m (the notional reversal amount).
This is on the basis that certain certificates of capital importation (CCIs) utilized in the private placement were not properly issued.
MTN Nigeria will pay the notional reversal amount without admission of liability.
The CBN will regularise all the CCIs issued on the investment by shareholders of MTN Nigeria of circa $402,625,419 without regard to any historical disputes relating to those CCIs.
MTN Nigeria will be engaging with the banks it obtained the CCIs from, in relation to the issues dealt with in the resolution agreement
