MTN Confirms Nigeria’s AGF Withdrawal of $2bn Tax Demand

By Dipo Olowookere

The $2 billion tax demanded from MTN Nigeria Communications PLC by the Attorney General of the Federation (AGF), Mr Abubakar Malami, has been withdrawn, MTN Group confirmed on Friday.

In a statement issued on Friday evening, the Africa’s largest telecommunications network provider said its legal representatives in the matter received a letter from AGF informing them of the latest development.

In the said letter dated Wednesday, January 8, 2020, the Nigeria’s chief law officer said he was stepping aside from the case for the relevant agencies to handle. He said the tax issue will now be pursued by the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS). According to Mr Malami, this decision was reached after that careful review and due consultation with these agencies of federal government.

Business Post reports that in August 2018, the AGF asked MTN Nigeria to pay a tax of $2 billion. This prompted the company to file a suit against the AGF on September 4, 2018.

At a hearing last month, the case was adjourned to January 30, 2020.

“MTN Nigeria has been informed by means of a letter received by its legal counsel and dated 8 January 2020, that following careful review and due consultation with relevant statutory agencies, the AGF has decided to refer the matter to the relevant authorities, being the FIRS and the NCS, with a view to them resolving the issues. Accordingly, the AGF has withdrawn its letter of demand for the aforementioned $2 billion that was issued in August 2018,” the statement today said. l

“MTN Nigeria will consequently follow due court process to withdraw its legal action against the AGF and engage with FIRS and NCS on this issue.

“MTN remains committed to building and maintaining cordial relationships with all regulatory authorities in Nigeria,” it added.

Commenting on the news, MTN Group CEO, Mr Rob Shuter, said “we appreciate this decision of the Attorney General which paves the way to an orderly and amicable resolution of this matter.

“MTN remains fully committed to meeting our fiscal responsibilities and contributing to the social and economic development of Nigeria and all regions where we operate.”