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MTN Takes AGF, CBN To Court Over $10.1bn Demand

MTN Takes AGF, CBN To Court Over $10.1bn Demand

MTN 201809100052A
Further announcement regarding Central Bank of Nigeria and the Attorney General of the Federal Republic of Nigeria

MTN Group Limited
(Incorporated in the Republic of South Africa)
Registration Number 1994/009584/06
Share code: MTN
ISIN: ZAE000042164
(“MTN Group” or “the Company”)

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Further announcement regarding Central Bank of Nigeria (CBN) and the Attorney General of the
Federal Republic of Nigeria (AGF) matters and renewal of cautionary announcement.

As previously disclosed the CBN has alleged improper dividend repatriations by MTN Nigeria
Communications Limited (MTN Nigeria) and requested that $8,1 billion be returned “to the coffers of
the CBN” whilst the AGF has alleged unpaid taxes on foreign payments and imports and that
approximately $2,0 billion in relation to these taxes be paid to the Federal Government of Nigeria (and
now directed that the payment of the $8.1 billion is dealt with through his office rather than as
directed by the CBN). MTN Nigeria has denied these allegations and claims. Furthermore 4 commercial
banks were issued fines in respect of the administration of the CCI and irregular dividend repatriation
matter and requested to return, in aggregate, the same $8,1 billion.

In order to protect MTN Nigeria’s assets and shareholder rights within the confines of Nigerian law,
we have applied today in the Federal High Court of Nigeria for injunctive relief restraining the CBN and
the AGF from taking further action in respect of their orders, while we continue to engage with the
relevant authorities on these matters. We remain resolute that MTN Nigeria has not committed any
offences and will continue to vigorously defend its position.

We will provide further information as and when available. Shareholders are accordingly advised to
continue to exercise caution when dealing in the Company’s securities until a further announcement
is made.

MTN sues AGF, CBN over $10.1bn demand – TheCable

MTN Nigeria has filed a suit against the Central Bank of Nigeria (CBN) and the attorney-general of the federation to seek a restraining order.

In a suit filed in Lagos on Monday, the telco is seeking an injunctive relief to protect its assets and shareholder rights.

In a statement by MTN, the company said it continues to “categorically and unequivocally” deny all charges related to investigations by the CBN and AGF into the company’s CCIs and unpaid taxes respectively.

The CBN has alleged improper dividend repatriations by MTN Nigeria and requested that $8.1 billion be returned to the coffers of the banking regulator.

The AGF said MTN had unpaid taxes on foreign payments and imports approximately $2.0 billion.

The company said it would continue to engage with the relevant authorities on issues.

Tobe Okigbo, MTN Nigeria corporate relations executive, said, according to the statement: “The allegations being made involve issues that appear to be complex and so are easily misunderstood and misinterpreted. They are made even more confusing when the relevant authorities send conflicting messages and instructions and act in a way that appears un-coordinated and at cross purposes.

The simple reality is that MTN Nigeria has never repatriated dividends on the CCIs referenced by the CBN and that MTN is fully compliant with Nigerian tax law.

With situations like this, it is vital for both the government, regulators and the company to have absolute clarity on the nature of both the allegations being made and the processes that are being followed. In the absence of this clarity, our only option is to seek judicial intervention and to ask the courts to act as adjudicator. This has been done today.”

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