The Central Bank of Nigeria (CBN) might have gone all the way out in its claims against MTN Nigeria.
Court documents pertaining to the case between the apex bank and telco reveal the CBN had requested the court to compel MTN to pay 15% annualised interest on the sum until the courts make a judgment, and 10% until the sum is paid.
The telco had taken the CBN and the Office of the Attorney General of the Federation (AGF) to court, in a bid to protect MTN Nigeria’s assets and shareholders’ rights.
Prior to this
The company in late August was asked to return the sum of $8 billion, which the CBN believes was illegally moved out between 2006 and 2016.
The Office of the Attorney General of the Federation has also slammed a $2 billion back tax on the firm.
The ripple effect
The ensuing controversy spooked foreign portfolio investors in the country, with some of them exiting their holdings. The CBN was then forced to issue a statement allaying their fears of a possible retroactive application of the country’s foreign exchange laws.
CBN Governor Godwin Emefiele also reiterated this in response to questions posed at last week’s Monetary Policy Committee (MPC) meeting. According to him, all parties involved were discussing and the banks had submitted additional documents backing their claims.
A much-awaited Initial Public Offering (IPO) by its Nigerian unit may also be put on hold.
The troubles at the Nigerian unit have also led to a slide in the parent company’s share price. Year to date, the stock is down 33% on the Johannesburg stock exchange.