Registered users can save articles to their personal articles list. Login here or sign up here

Nigerian tax case between MTN, attorney general adjourned

The case over the $2bn tax dispute has been adjourned to October 29.

A Nigerian judge on Wednesday adjourned until October 29 a case to resolve a $2 billion tax dispute between South African telecoms company MTN Group and Nigeria’s attorney general.

The attorney general has demanded MTN pay the $2 billion in September. The company has said the tax demand is without merit and the attorney general has exceeded his powers in making the request.

Lawyers for the government requested the adjournment.

Nigeria is MTN’s biggest market, with 58 million users in 2018 and accounting for a third of the South African firm’s core profit. But the Nigerian business has faced challenges, ranging from the tax demand to a fine over unregistered SIM cards.

MTN Nigeria, the company’s local unit, listed in Lagos in May in a 2 trillion naira ($6.5 billion) flotation and became the second-largest stock on the bourse by market value.

The listing followed MTN Group’s agreement with Nigerian regulators to settle most of its long-running disputes.

MTN said it would sell more shares to the public and increase local ownership in MTN Nigeria once the tax row was resolved.

MTN agreed in December to make a $53 million payment to resolve a separate dispute in Nigeria after the central bank ordered the company and its lenders to bring back to Nigeria $8.1 billion it was alleged to have repatriated using improperly issued paperwork between 2007 and 2008.

The settlement ended a four-month row that had hammered MTN’s share price in Johannesburg.

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   2

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

It just drags on and on. No place to do business. Nigeria is in many ways the epitome of a failed state. Justice system weak and clearly in over their heads here. Very draining for MTN shareholders and management

There is no other place where you can loose your shirt quicker than Nigeria.
It is a cesspit of governance irregularities and corruption.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

SHOP NEWSLETTERS TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company:
server: 172.17.0.2