Economy

MTN Pays CBN $53m to Settle $8.1b CCI Dispute

Published

7 years ago

27/12/2018

By Dipo Olowookere

Leading telecom firm, MTN Nigeria, has confirmed paying the sum of $52.6 million (about N19.2 billion) to the Nigerian government through the Central Bank of Nigeria (CBN).

In a statement issued by the company on Monday, it was disclosed that the money was paid as part of ways to resolve the dispute over the $8.1 billion the central bank accused MTN Nigeria of moving out of the country to South Africa illegally from 2007 to 2015.

However, MTN Nigeria has maintained severally that it did not illegally repatriate the funds to its parent country.

It was disclosed that the $52.6 million paid was agreed at after “various engagements” between MTN Nigeria and the CBN “in order to find an equitable resolution to the matter. In particular, a series of meetings were held in Lagos with CBN officials during November 2018.

At these meetings, MTN Nigeria said it provided additional material documentation which satisfactorily clarified its remittances and that the CBN, upon review of the additional documentation, concluded that the firm was no longer required to reverse the historical dividend payments made to MTN Nigeria shareholders.

“However, the CBN maintains that the proceeds from the preference shares in MTN Nigeria’s private placement remittances of 2008 of $1 billion were irregular having been based on CCIs that only had an approval in-principle, but not final regulatory approval of CBN.

“The CBN instructed MTN Nigeria 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 $52.6 million (the notional reversal amount).

“This is on the basis that certain certificates of capital importation (CCIs) utilised in the private placement were not properly issued,” the statement said.

“MTN Nigeria and the CBN have agreed that they will resolve the matter on the basis that MTN Nigeria will pay the notional reversal amount without admission of liability.

“In terms of the resolution agreement, 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, thereby bringing to a final resolution all incidental disputes arising from this matter,” it added.

MTN Nigeria explained that it relied on certain commercial banks to ensure all approvals had been obtained prior to the CCIs being issued and to ensure the CCIs were properly utilised in the private placement.

The telecom firm said it will be engaging with the banks in relation to the issues dealt with in the resolution agreement.

“Shareholders are advised that the legal process initiated by MTN Nigeria for injunctive relief restraining the AGF from taking further action in respect of its orders for back taxes is continuing.

“The AGF matter came up for initial mention before the Federal High Court of Nigeria Lagos Judicial Division on 8 November 2018 and has been adjourned to February 7, 2019.

MTN Nigeria continues to maintain that its tax matters are up to date and no additional payment, as claimed by the AGF, is due, and consequently no provisions or contingent liabilities are being raised in the accounts of MTN Nigeria for the AGF back taxes claim. “As a result of the above, shareholders are no longer required to exercise caution in dealing with the company securities,” the statement said.

Economy

NASD Unlisted Security Index Crosses 4,000-point Benchmark Again

Published

2 hours ago

25/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange achieved a milestone on Friday, April 24, 2026, after five securities on the platform helped with a 1.85 per cent growth.

Data showed that the NASD Unlisted Security Index (NSI) again crossed the 4,000-point benchmark yesterday.

The index chalked up 73.64 points during the trading day to close at 4,052.59 points compared with the preceding session’s 3,978.95 points, while the market capitalisation added N5.38 billion to finish at N2.424 trillion versus Thursday’s closing value of N2.380 trillion.

The price gainers were led by Okitipupa Plc, which grew by N25.00 to sell at N305.00 per share compared with the previous price of N280.00 per share. Central Securities Clearing System (CSCS) Plc gained N6.92 to close at N76.26 per unit versus N69.34 per unit, Afriland Properties Plc appreciated by N1.00 to N17.00 per share from N18.00 per share, FrieslandCampina Wamco Nigeria Plc improved by 55 Kobo to N99.55 per unit from N99.00 per unit, and Food Concepts Plc increased by 5 Kobo to N2.70 per share from N2.65 per share.

However, there was a price loser, MRS Oil, which dipped by N21.75 to N195.75 per unit from N217.50 per unit.

During the final session of the week, the value of securities jumped 75.2 per cent to N41.3 million from N23.6 million units, and the number of deals expanded by 62.9 per cent to 44 deals from 27 deals, while the volume of securities declined marginally by 0.9 per cent to 447,403 units from 451,522 units.

At the close of trades, Great Nigeria Insurance (GNI) Plc was the most traded stock by volume (year-to-date) with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units valued at N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units traded for N1.2 billion.

GNI was also the most active stock by value (year-to-date) with 3.4 billion units sold for N8.4 billion, followed by CSCS Plc with 59.6 million units transacted for N4.0 billion, and Okitipupa Plc with 27.8 million units exchanged for N1.9 billion.

Economy

Naira Slips to N1,358/$1 as FX Reserves, Policy Uncertainty Concerns

Published

2 hours ago

25/04/2026

Adedapo Adesanya

By Adedapo Adesanya

It was not a good day for the Nigerian Naira in the currency market on Friday, April 24, as its value depreciated against the major foreign currencies at the close of transactions.

In the Nigerian Autonomous Foreign Exchange Market (NAFEX), it lost N4.53 or 0.33 per cent against the United States Dollar yesterday to trade at N1,358.44/$1, in contrast to the N1,353.91/$1 it was exchanged on Thursday.

Equally, the domestic currency slipped against the Pound Sterling in the official market during the session by N8.14 to close at N1,834.02/£1, compared with the previous rate of N1,825.88/£1 and dropped N8.01 against the Euro to sell at N1,590.73/€1 versus N1,582.72/€1.

Also, the Naira depreciated against the US Dollar at the GTBank FX desk on Friday by N4 to quote at N1,370/$1 compared with the previous session’s N1,366/$1, and at the parallel market, it depleted by N5 to settle at N1,380/$1 versus the preceding day’s N1,375/$1.

Data published by the Central Bank of Nigeria (CBN) indicated that NFEM interbank turnover surged to N43.562 million across 68 deals, up from N28.117 million the previous day.

Despite the CBN’s reassurance that the recent drop in external reserves is not worrisome, the market remains unsettled by persistent concerns over liquidity constraints, policy transparency, and weakening confidence in Nigeria’s FX market as gross reserves continue to decline to $48.4 billion.

The outlook for the Dollar appears supported by broader macro risks, including elevated oil prices tied to the tanker traffic disruptions in the Strait of Hormuz and a continued US-Iran standoff over ceasefire negotiations.

A look at the digital currency market showed that investors are sitting on the edge as the US Dollar rebounded amid geopolitical and inflation risks despite continued inflows into US spot bitcoin Exchange Traded Funds (ETFs).

Solana (SOL) rose by 1.2 per cent to sell $86.45, Cardano (ADA) appreciated by 1.1 per cent to $0.2517, Dogecoin (DOGE) grew by 0.9 per cent to $0.0989, Ripple (XRP) improved by 0.3 per cent to $1.43, Ethereum (ETH) soared by 0.2 per cent to $2,316.83, and Binance Coin (BNB) chalked up 0.1 per cent to sell for $637.44.

However, TRON (TRX) depreciated by 1.3 per cent to $0.3235, and Bitcoin (BTC) lost 0.2 per cent to close at $77,562.27, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.

Economy

Oil Market Mixed Amid Supply Disruptions, US–Iran Peace Talk Prospects

Published

2 hours ago

25/04/2026

Adedapo Adesanya

By Adedapo Adesanya

The oil market was mixed on Friday as traders weighed supply disruptions against the potential restart of peace talks between the US and Iran that could help limit those shortfalls.

Brent crude futures settled at $105.33 a barrel after rising by 26 cents or 0.3 per cent, while the US West Texas Intermediate (WTI) crude futures traded at $94.40 a barrel after falling by $1.45 or 1.5 per cent. For the week, Brent gained about 16 per cent and WTI rose nearly 13 per cent.

Reuters reported that Iranian Foreign Minister Abbas Araqchi was expected to arrive ⁠in Islamabad late on Friday to discuss proposals for resuming peace talks with the U.S. after talks collapsed earlier this week.

Also, CNN reported that US President Donald Trump was sending special envoy Steve Witkoff and Jared Kushner to Pakistan for talks with Iran’s foreign minister.

The American President also told Reuters on Friday that Iran plans to make an offer aimed at satisfying US demands. On Thursday, he said Iran may have loaded up its weaponry “a little bit” during a two-week ceasefire, but added that the US military could eliminate it in a single day. On Wednesday, he said he would indefinitely extend the ceasefire to allow for further peace talks.

Meanwhile, navigation through the Strait of Hormuz, which before the war carried about a fifth of global oil output, remains effectively blocked.

Iran’s Islamic Revolutionary Guard Corps seized two container ships – MSC Francesca and Epaminondas – following the US’ seizure of the Iranian cargo ship Touska, putting a drastic halt to attempts to pass through the Strait of Hormuz by non-oil tankers.

The head of the International Energy Agency (IEA), Mr Fatih Birol, said that the Iran war has permanently changed the fossil fuel industry, adding that the damage to confidence in fossil fuel security is permanent, and that countries exposed to the Strait of Hormuz disruption will rethink how much geopolitical risk they are willing to embed in their energy systems.

Analysts from JPMorgan argued that prices may need to rise further to force additional demand destruction. Goldman Sachs estimates Gulf oil production is down 57 per cent from pre-war levels, which are shortage signals, not evidence of a fossil fuel system in retreat.