Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News

MTN shares take severe pounding as Nigerian woes worsen

Onome OhwovoriolebyOnome Ohwovoriole
4 years ago
in Business News, Company News
MTN Nigeria

MTN Nigeria

Share on FacebookShare on TwitterShare on Linkedin

MTN South Africa’s share price took a severe pounding yesterday as news broke over a $2 billion back taxes slammed on the company by authorities in Nigeria broke yesterday.

Trading opened on the Johannesburg Stock Exchange (JSE) yesterday at 8684 ZAR and began to slid once news of the back taxes broke. The stock closed at 7225 ZAR down 16.8%. The stock has lost over 30% since the crisis began. Year to date, the shares are down 46.1%.

 

 In dollar terms, market capitalization has also dropped 35.2% from $13.07 billion on the day news of the refund broke out to $8.46 billion as at yesterday.

Nigeria’s Attorney General (Mr Abubakar Malami), while conducting an investigation into corporates’ tax compliance in Nigeria, calculated that the company owes the Nigerian Government the sum of $2 billion in back taxes.

The taxes span over a ten-year period and are related to the importation of foreign equipment into the country as well as payments to the suppliers of the said equipment.

Barely a week ago, the Central Bank of Nigeria (CBN) ordered it to refund the sum of $8.1 billion; being funds that were illegally remitting to South Africa over time.

In line with the development, Nigeria’s apex bank also imposed a  fine of  ₦5.86 billion on the four banks which were accused of facilitating the illegality; including Standard Chartered Bank, Stanbic IBTC, Diamond Bank Plc and Citibank.

Despite the challenges, CEO of the Group, Mike Shutter has stated that the challenges presented by the issue ($8.1 billion refund) will not affect the company’s ‘partnership’ with Nigeria.

“We have a proud history of being a major partner to the people of Nigeria and notwithstanding our current difficulties are firmly resolved to continue to do so.” -Shutter

Nigeria is a crown jewel

The country plays a key part in the group’s operations. Nigerian operations amounted to 24% of the group’s 217 million subscribers and 20% of its 69 million active data subscribers

In terms of profit, Nigerian operations accounted for 30% of group EBITDA of R47 billion in 2017 and 32% of its Profit Before Tax of R32 billion.

Data from the group’s half-year results for the period ended June 2018 show Nigeria accounted for 25% or 55.2 million of MTN’s subscriber base of 223 million as at June 2018.

Related

Tags: MTN GroupMTN Nigeria

Leave a Reply Cancel reply

HFM
Mega Millions
Mega Millions
Patricia





NM newsletters

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • 3 reasons most Nigerians may ignore Starlink and stick with their mobile operators
  • Why Nigerians are obsessed with cash
  • Finance Minister says Federal Government is set to activate full potentials of mining sector

Follow us on social media:

Recent News

Starlink is now in Nigeria, but for only those earning dollars

3 reasons most Nigerians may ignore Starlink and stick with their mobile operators

February 6, 2023
Why Nigerians are obsessed with cash

Why Nigerians are obsessed with cash

February 6, 2023
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Lifestyle
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds

© 2023 Nairametrics