MTN and Nigeria’s Central Bank, reach tentative deal over reduction of $8 billion fine

Nigeria’s Central Bank, and South Africa-based multinational wireless carrier, MTN have reached a tentative agreement on the US$8 billion fines imposed on Nigerian subsidiary of the company – MTN Nigeria – for violating currency regulations, ThisDay reported. It cited sources as saying that MTN Group CEO and president Rob Shuter was in Abuja late last week and met with Central Bank Governor Godwin Emefiele to discuss the fines, which the South African Reserve Bank (SARB) has said could increase the risks to the country’s financial system.

Based on unassailable findings, said a source, there was an agreement that the Central Bank would grant the firm a substantial reduction in the fines.

Following the deal, the apex bank was due to meet with the 4 banks affected by the fines on Friday. Reuters had reported that the Central Bank emailed invitations to the Nigerian heads of the big banks – Standard Chartered, Citibank, Stanbic IBTC Bank and Diamond Bank to attend a meeting.

According to Reuters, the Central Bank and the banks declined to comment on the meeting, and that a spokeswoman for MTN said she did not know of the proposed meeting.

In a separate case, MTN faces a US$2 billion tax demand from Nigeria’s Attorney-General, which the firm has said is without merit. The Lagos court yesterday adjourned the case against the attorney general until 03 December.

Source: Telecom Papaer