Governor of the Central Bank of Nigeria, Godwin Emefiele has hinted that the $8.1 billion fine against MTN Group Ltd. maybe slashed. The CBN governor revealed that the telco company and its bankers have provided more documents that may facilitate the reduction of the fine.
The apex bank in August accused MTN and four banks: Standard Chartered Plc, Citigroup Inc., Stanbic IBTC Plc and Diamond Bank Plc of illegally repatriated money from Nigeria and that the company should return $8.1 billion. The local regulator also fined the four banks a combined $16 million.
Speaking to newsmen in London, Emefiele said he expected that the new information would help cut the size of the claim and that the matter would be resolved “amicably.”
“I don’t think it will be at $8.1 billion having provided documents,” Emefiele said, adding his staff is studying the documents and he hoped to make a decision on the matter in a “couple of weeks.”
MTN sought an injunction in early September to buy itself time and fight the claim in its biggest market, which wiped as much as 36 percent off its market value within two weeks.
The central bank has asked the Federal High Court in Lagos to deny MTN’s request and said the company should pay an annualized 15 percent interest on the dividends until the matter is ruled upon, and then 10 percent until the whole sum is paid, according to legal documents filed by the regulator.
“They will see they have been given a fair hearing,’’ Emefiele said. “More information has been provided and I’m very optimistic that matters are going to be resolved amicably.’’
The CBN boss said the clash with MTN had taken a “global dimension” that it didn’t need to and that he was keen to demonstrate to international investors how open the Nigerian market is, calling the MTN matter “isolated’’ and no reason “for anyone to lose any sleep.’’
“This is not a matter that should have blown so openly,’’ he said. “Nigeria is a country that happens to be very, very open.”