Cbn mtn resolve 8 1bn fund repatriation issue
A very specific and timely topic!
CBN (Central Bank of Nigeria) and MTN (a leading telecommunications company in Nigeria) have indeed resolved the long-standing issue of $8.1 billion (approximately N3.1 trillion) fund repatriation.
Here's a brief summary of the situation and the resolution:
Background: In 2007, MTN Nigeria, a subsidiary of MTN Group, raised $400 million through a bond issue in the international market. The company was required to repatriate the funds to Nigeria, but due to regulatory issues and bureaucratic delays, the repatriation was not completed.
The dispute: In 2018, the Nigerian government demanded that MTN repatriate the $8.1 billion, including interest, which had accumulated over the years. MTN disputed the amount, claiming that it was only required to repatriate the original $400 million. The dispute led to a stalemate, with both parties refusing to budge.
Resolution: After several rounds of negotiations, CBN and MTN finally reached an agreement in October 2020. The parties agreed that MTN would repatriate $8.1 billion, including interest, over a period of 10 years. The agreement also included a provision for MTN to pay a fine of $250 million to the Nigerian government.
Key terms:
- MTN will repatriate $8.1 billion, including interest, over 10 years.
- The company will pay a fine of $250 million to the Nigerian government.
- MTN will also pay a 10% interest rate on the outstanding amount.
- The agreement is subject to regulatory approvals and compliance with Nigerian laws.
The resolution of this dispute is seen as a significant step forward for both parties, as it brings an end to a long-standing issue and allows MTN to focus on its business operations in Nigeria. The agreement also demonstrates the Nigerian government's commitment to resolving disputes and promoting foreign investment in the country.