CBN $8.1bn demand: MTN shares rise on reduction possibility

October 9th, 2018

South Africa’s MTN Group shares rose as much as 2.55 per cent after the Nigerian central bank said it might reduce the $8.1 billion it had ordered the telecoms firm to repatriate to Nigeria.

At the Johannesburg Stock Exchange on Monday, MTN shares were up 2.03 per cent to 85.50 rand as early as 0837 GMT, due to the possibility of reducing the repatriation demand by MTN.

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.

Godwin Emefiele said on Sunday the CBN may reduce the amount it had ordered MTN Nigeria to repatriate.

Emefiele said, while addressing reporters in London that new documents provided by the telecom company would help to reduce the size of the claim.

“I don’t think it will be staying at $8.1bn.

“I want to believe that the figure will reduce. Whether it will be dropped completely, I honestly cannot say at this time,” he added.

Emefiele said the central bank had received documents about two weeks ago from MTN and four lenders involved in the case.

The lenders are Standard Chartered, Stanbic IBTC Bank, Citibank and Diamond Bank, adding that the apex bank was in communication with all parties involved.

“The central bank will be examining these; then it will be escalated up to my level,” he said, adding that he expected to get the results in a couple of weeks,” he said. (Reuters/NAN)

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