After closing the stock market on a positive note on Monday, MTN Nigeria retraced steps back to last week’s performance, recording a fall in its stock price today, as it did last week when it couldn’t maintain a positive grip.
The company had closed yesterday’s market on a high, clocking N129.50 kobo per share from Friday’s N129.05 kobo. It, however, couldn’t replicate Monday’s performance as investors’ concern lingers.
MTN Nigeria closed with N129.05 kobo per share on the Nigerian Stock Exchange, same price the company’s price share went for last week Friday.
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Investors’ confidence towards MTN Nigeria is wavering, and the market’s sentiment is negatively affecting the purchasing power of investors, placing a bearish view on the company’s asset.
This fear could be linked to the political face-off MTN Nigeria is currently involved in, as the case between MTN Nigeria and the office of the Attorney General of the Federation is still on, dragging into October 29, 2019.
More time had been requested to enable the Lawyers of the AGF’s office prepare their case and file a response. Nairametrics had reported that the Attorney General’s Office accused MTN Nigeria of failing to pay $2 billion in taxes and penalties, but the telecoms firm filed a case asking the court to rule on the legitimacy of the case, arguing that the AGF does not have the jurisdiction to determine unpaid taxes and therefore it should neither have to pay the tax bill nor related fines.
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Why the case may stall: The law suit against the Attorney General’s Office started when Justice Abubakar Malami was serving as Nigeria’s Minister of Justice and Attorney General. He left the position in May, as the federal cabinet was dissolved on May 28, 2019, and a new appointment hasn’t been announced by President Muhammadu Buhari.
Note: There’s a fine of $1.3 billion which MTN Nigeria doesn’t want to pay. The court has granted the company’s wish. Now, MTN is demanding $8.3 million in general and exemplary damages, as well as legal costs to the company.
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