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CBN Backs MTN to a tight Corner

Nigeria’s apex bank, Central Bank of Nigeria (CBN) has suspended MTN Group dividend payment from its Nigerian subsidiary, MTN Nigeria until further notice.

The CBN had ordered the four commercial banks operated by MTN to suspended dividend payout from Nigeria. Addressing the issue, the company said:

“MTN Nigeria, four commercial banks, certain MTN Nigeria directors and shareholders, the Central Bank of Nigeria and others appeared before the Senate on 20 October 2016 at the outset of this investigation.

“The allegations are that $13.97 billion was repatriated illegally by MTN Nigeria through its bankers. MTN Nigeria and its bankers are cooperating with the investigation with a view to resolving the matter as expeditiously as possible.

“In the interim, the CBN has instructed the banks to suspend any remittance of dividends until further notice. MTN Nigeria continues to refute the allegations that MTN Nigeria had improperly repatriated funds from Nigeria.

“Consequently, MTN Nigeria will strongly defend any action that would be prejudicial to its interest. MTN Nigeria has no intention to make any dividend payments over the next six months.”

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