This archive report was first published on 14 January 2020.
On January 8, 2020, MTN Nigeria received a letter from the Attorney General, stating that after a careful review and due consultation with relevant statutory agencies, the matter would be referred to the Federal Inland Revenue Service (FIRS) and Nigeria Customs (NC) for resolution.
The Attorney General's office had claimed that MTN Nigeria owed approximately USD 2 billion in taxes, alleging that the telco had imported foreign equipment and made payments to foreign suppliers over the prior ten years.
MTN Nigeria had commenced legal action in Lagos against the Attorney General, leading to months of a bruising court battle. The telco vowed to follow the court processes prior to the case withdrawal.
MTN Nigeria stated, 'We will consequently follow due court process until it withdraws its legal action against the AGF and engages with FIRS and NC on this issue.'
The telco also noted that it would continue with its commitment to build and maintain cordial relationships with all regulatory authorities in Nigeria.
Commenting on the news, MTN Group CEO, Rob Shuter said, 'We appreciate this decision of the Attorney General. It paves the way to an orderly and amicable resolution of this matter. MTN will remain fully committed to meeting our fiscal responsibilities, contributing to the social and economic development of Nigeria and all regions where we operate.'
MTN had earlier agreed to make an almost $53 million payment to resolve the dispute, without admission of liability. This was for a 2008 private placement remittance worth around $1 billion that the CBN found was based on certificates that did not have final approval.
