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The Federal High Court in Lagos has ruled against the preliminary objection filed by Nigeria&#8217;s Attorney General in response to the three billion Naira suit filed against him by telecoms operator MTN Nigeria. The court ruled that MTN Nigeria met the deadline to respond to the tax demand levelled by the Attorney General of the Federation. Theophilus Emuwa, Managing Partner at AELEX joins CNBC Africa to discuss this story.

Understanding MTN Nigeria’s legal battle with attorney general

LAGOS/JOHANNESBURG (Reuters) &#8211; MTN Group, Africa’s biggest mobile operator, will keep engaging with Nigerian authorities to resolve a $10.1 billion dispute with the west African country, but is putting its faith in the courts to protect itself, its CEO said on Monday.
The telecom firm, which makes about a third of its annual core profit in Nigeria, has said the allegations are without merit, but added that no further negative steps have been taken by authorities in Nigeria.
Nigeria’s central bank on Aug. 29 ordered the South African firm and its lenders to bring $8.1 billion back into Nigeria that it alleges the company sent abroad in breach of foreign exchange regulations. MTN also faces a $2 billion tax demand from the country’s attorney general.
MTN has denied any wrongdoing, and filed a court case against the central bank.
“We have continued engagement with authorities, exchanging documentation and there is genuine will to reach an amicable situation,” MTN’s Chief Executive Officer Rob Shuter said on a conference call.
“However, we need to protect ourselves and we are relying on the courts in Nigeria to make sure there’s an amicable resolution.”
A court hearing between the central bank and MTN on the $8.1 billion repatriation case is scheduled for Tuesday.
Shuter said investors should note that the company did not expect a resolution to come through then.
“No further negative steps have been taken by the authorities in Nigeria, however it is important to keep legal steps going,” Shuter said, adding that MTN was not carrying out any repatriations from Nigeria for now.
“Tomorrow (Tuesday) we are likely to have an adjourned date because more information will likely be requested, however, it is important to create an environment to look for continued solutions.”
Shuter said although it had been a difficult quarter due to the regulatory challenges in Nigeria, the company still managed to put in a strong performance in Africa’s biggest economy with data revenue growing.
MTN said its debut stock market listing in Nigeria may slip into early 2019 because it needs to work on the format for the share sale.
It reported a 1.1 percent rise in quarterly user base, helped partly by strong performances in Nigeria.
The company said its user base increased by 2.5 million subscribers to 225.4 million users in the quarter ended September, and mobile money customers grew by 1.7 million to 25.8 million users.
Mobile money customers charge their phones with cash, and send it to friends or family via the short message service. These counterparties can then make similar transfers or cash in their credits with pre-approved agents, such as merchants or banks.
Reporting by Didi Akinyelure and Chijioke Ohuocha in Lagos and Tiisetso Motsoeneng in Johannesburg; Writing by James Macharia; Editing by Emelia Sithole-Matarise

Here’s what MTN is relying on to end dispute with Nigeria

JOHANNESBURG (Reuters) &#8211; MTN Group, Africa’s biggest mobile operator, reported a 1.1 percent rise in quarterly user base on Monday, helped partly by strong performances in Nigeria, its largest but increasingly problematic market.
The company said its user base increased by 2.5 million subscribers to 225.4 million users in the quarter ended September, and mobile money customers grew by 1.7 million to 25.8 million users.
Mobile money customers charge their phones with cash, and send it to friends or family via the short message service. These counterparties can then make similar transfers or cash in their credits with pre-approved agents, such as merchants or banks.
MTN is embroiled in a $10.1 billion dispute with the west African country of Nigeria, which has accused the company of illegally sending money abroad.
The telecom firm, which makes about a third of its annual core profit in Nigeria, said the allegations are without merit.
Nigeria’s central bank on Aug. 29 ordered the South African firm and its lenders to bring $8.1 billion back into Nigeria that it alleges the company sent abroad in breach of foreign exchange regulations. MTN also faces a $2 billion tax demand from the country’s attorney general.
“We continue to engage with relevant authorities on these matters. We remain resolute that MTN Nigeria has not committed any offences and will continue to defend this position vigorously,” MTN said while posting the quarterly results.
Reporting by Tiisetso Motsoeneng, Editing by Sherry Jacob-Phillips

MTN’s strong performance in Nigeria aid rise in Q3 subscribers despite dispute

JOHANNESBURG (Reuters) &#8211; South Africa’s MTN Group shares rose as much as 2.55 percent after the Nigerian central bank governor said on Sunday the bank may reduce the amount it has ordered the telecoms firm to repatriate as part of an ongoing disagreement.
MTN and the central bank are in a dispute over the transfer of $8.1 billion of funds which the bank said the company had sent abroad in breach of foreign-exchange regulations. At 0837 GMT shares in MTN were up 2.03 percent to 85.50 rand.
Reporting by Nqobile Dludla; Editing by James Macharia

MTN shares rise as Nigeria’s central bank could reduce amount it ordered the company to repatriate

* MTN faces $10 bln penalties in dispute with Nigeria
* Nigerian unit brings in third of annual core profit
* MTN CEO has said confident dispute can be resolved (Adds attorney general spokesman declining comment, background)
By Didi Akinyelure and Alexis Akwagyiram
LAGOS, Sept 11 (Reuters) &#8211; Nigeria’s attorney general exceeded his powers in demanding $2 billion in taxes and charges from MTN Group, Africa’s biggest telecoms firm said in papers filed with Nigeria’s High Court and reviewed by Reuters.
The papers, filed on Monday in a move by the Nigerian arm of the South African firm aimed at protecting its assets, also showed MTN was seeking 3 billion naira ($10 million) from the West African country in court and legal expenses.
Earlier this month, the Nigerian government handed MTN a $2 billion tax bill days after the central bank, in a separate move, ordered the company’s Lagos unit to hand over $8.1 billion that it said was illegally sent abroad.
Nigeria, which accounts for a third of MTN’s annual core profit, is MTN’s biggest market. Some analysts see politics as a factor in the pressure on MTN as Nigerian President Muhammadu Buhari, who took office in 2015 on promises to push through tougher regulation, is seeking re-election in 2019.
“The attorney-general of the federation (of Nigeria) acted illegally, unconstitutionally, and in excess of his powers” by implementing charges in a “self-assessment exercise” that related to customs, the inland revenue and import duties, the court documents state.
The attorney general did not respond to telephone calls and a text message requesting comment. His spokesman, Salihu Isah, declined to comment.
The documents seen by Reuters include a writ of summons, dated Sept. 10, ordering the attorney general or his representative to make an appearance at the high court in Lagos within 30 days.
It was not clear whether the attorney general had filed a statement of defence.
The attorney general has previously said MTN Nigeria should have paid approximately $2 billion in taxes relating to imports of foreign equipment and payments to foreign suppliers.
The documents submitted by MTN, some 70 pages of which were seen by Reuters in which the attorney general is referred to as AGF and MTN Nigeria as MTNN, also refer to the allegation that MTN illegally sent $8.1 billion abroad.
The central bank said in a statement issued on Aug. 29 that the $8.1 billion was “illegally repatriated” through the “illegal conversion of MTN shareholders’ loan to preference shares”.
As a result, $8.1 billion in dividends paid by MTN Nigeria to its shareholders between 2007 and 2015 should be returned.
MTN has denied the allegations.
It is not the first time the telecoms firm has been accused of infractions in its largest market.
Its latest troubles come around two years after it agreed to pay more than $1 billion to settle a dispute over unregistered SIM cards in Nigeria, whose finances have been hit by a weak economy and volatile global oil prices.
The chief executive of MTN, which has expanded in more than 20 frontier markets including war-ravaged Syria and Afghanistan, on Monday told reporters in South Africa he was confident that the dispute would be resolved.
$1 = 304.2500 naira Additional reporting by Chijioke Ohuocha and Camillus Eboh in Abuja, and Paul Carsten in Kano; Writing by Alexis Akwagyiram; Editing by Mark Potter/David Evans and Emelia Sithole-Matarise
Our Standards:The Thomson Reuters Trust Principles.

Why MTN believes Nigeria’s attorney general exceeded powers in demanding $2 billion in taxes

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South African Telecoms firm, MTN Group says it has applied to Nigeria&#8217;s High Court to restrain the country&#8217;s Central Bank and the Attorney General from taking further action over its assets in Nigeria. Lami Adekola, Co-founder and Director at Hamilton and George joins CNBC Africa to discuss this.

MTN moves to secure assets in Nigeria

JOHANNESBURG (Reuters) &#8211; MTN Group has been put on review by Moody’s for downgrade after the South African mobile phone operator said it was on the hook for a total of $10.1 billion from its biggest market Nigeria, the ratings agency said on Thursday.
“MTN’s ratings have been placed on review for downgrade to reflect the uncertainty around the potential implications of the recent CBN (Central Bank of Nigeria) and NAG (Nigerian Attorney General) announcements on MTN’s credit profile,” Moody’s said.
Africa’s biggest wireless phones group said on Tuesday the Nigerian Attorney General was seeking $2 billion in taxes incurred over the last decade.
That followed an order days before from that country’s central bank that MTN’s Lagos-based unit hand over $8.1 billion that it said was illegally sent abroad.
Reporting by Tiisetso Motsoeneng; Editing by James Macharia

MTN placed on review for downgrade by Moody’s, what you need to know…

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Joining CNBC Africa to discuss the mix of global and local market news is Gary Booysen, Director and Portfolio Manager, Rand Swiss.

Why #MTN is still a buy after 22% drop

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The MTN Group says its commitment to list its Nigerian subsidiary on the Nigerian Stock Exchange in the next six months. Lami Adekola, co-founder of Hamilton and George joins CNBC Africa to discuss the impact this move could have on the NSE.

MTN set to list on Nigeria Stock Exchange in 6 months

CAPE TOWN, May 24 (Reuters) &#8211; Six South African telecom companies, including MTN Group <a href="reuters://REALTIME/Verb=FullQuote/ric=MTNJ.J">MTNJ.J</a> and Vodacom <a href="reuters://REALTIME/Verb=FullQuote/ric=VODJ.J">VODJ.J</a>, will be able to keep their in-demand broadband spectrum until their licences expire in 2028 after agreeing to buy at least 30 percent of the government&#8217;s new Wireless Open Access Network (WOAN), the communications minister said on Thursday.
Minister Siyabonga Cwele told journalists an agreement was reached with operators on May 19, after they initially opposed a government plan forcing them to ditch their broadband spectrum and share a national network.
Creating a single open-access network is at the heart of a government goal to roll out broadband access in Africa&#8217;s most industrialised economy.
In a statement mobile operator Telkom says it welcomes the study proposed by Cwele, to investigate, amongst other things, the amount of spectrum to be used by the planned national WOAN.
Adding that WOAN, &#8220;proposed as a policy intervention must be given an opportunity to succeed to level the playing field within the sector.
&#8220;This will ensure that barriers to entry for small players are lowered, which will result in increased competition. 
We are, however, weary of proposals to allocate the unused spectrum through an auction as this will further entrench the current duopoly and may have a negative effect on the consumer.
&#8220;The minister and the regulator must recognise that Telkom does not have the Sub 1 GHz Spectrum, which inhibits our ability to compete fairly. This needs to be addressed as a matter of urgency&#8221;.

S.Africa allows telecoms operators to keep broadband spectrum until 2028

South African mobile phone operator MTN Group has pulled the plug on its local mobile money business, saying it was not viable in a country where around three quarters of the population already has a bank account.
Mobile money services that allow customers to transfer funds using their phones have proved hugely popular in some other parts of Africa, particularly where people have less access to traditional bank accounts.
MTN launched its South African service in 2012 after the success of Safaricom&#8217;s M-Pesa in east Africa convinced some executives the service was the industry&#8217;s next growth area.
However MTN, Africa&#8217;s biggest wireless phone group, now joins Vodacom in abandoning the service in South Africa.
&#8220;The operating costs of providing a mobile money platform has become prohibitive,&#8221; MTN said in a statement on Thursday.
Both Safaricom and Vodacom are controlled by Britain&#8217;s Vodafone.
MTN said its decision did not mean a complete exit from financial services.
&#8220;MTN is still committed to remaining a significant player in the financial services space and we are exploring opportunities in financial services space and other adjacent sectors,&#8221; it said.﻿

MTN Group

Understanding MTN Nigeria’s legal battle with attorney general

Here’s what MTN is relying on to end dispute with Nigeria

MTN’s strong performance in Nigeria aid rise in Q3 subscribers despite dispute

MTN shares rise as Nigeria’s central bank could reduce amount it ordered the company to repatriate

Why MTN believes Nigeria’s attorney general exceeded powers in demanding $2 billion in taxes

MTN moves to secure assets in Nigeria

MTN placed on review for downgrade by Moody’s, what you need to know…

Why #MTN is still a buy after 22% drop

MTN set to list on Nigeria Stock Exchange in 6 months

S.Africa allows telecoms operators to keep broadband spectrum until 2028

MTN scraps mobile money business in South Africa

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MTN Group

Understanding MTN Nigeria’s legal battle with attorney general

Here’s what MTN is relying on to end dispute with Nigeria

MTN’s strong performance in Nigeria aid rise in Q3 subscribers despite dispute

MTN shares rise as Nigeria’s central bank could reduce amount it ordered the company to repatriate

Why MTN believes Nigeria’s attorney general exceeded powers in demanding $2 billion in taxes

MTN moves to secure assets in Nigeria

MTN placed on review for downgrade by Moody’s, what you need to know…

Why #MTN is still a buy after 22% drop

MTN set to list on Nigeria Stock Exchange in 6 months

S.Africa allows telecoms operators to keep broadband spectrum until 2028

MTN scraps mobile money business in South Africa

News Tips

Advertise With Us

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