The Central Bank of Nigeria said it's working on an "equitable resolution" of its claim against four banks and mobile operator MTN Nigeria of USD 8 billion in illegally expatriated funds. In a statement, the central bank said it is reviewing additional information received from the banks and MTN with a view to reaching a settlement.
In August, the Central Bank ordered Citigroup, Standard Chartered, Stanbic IBTC Holdings and Diamond Bank to refund more than USD 8 billion it says was illegally expatriated by MTN Group over the eight years to 2015. MTN was also ordered to participate in the refund.
MTN has denied any improper action. The company said it received a letter on 29 August from the CBN, alleging that Certificates of Capital Importation (CCIs) issued in respect of the conversion of shareholders loans in MTN Nigeria to preference shares in 2007 had been improperly issued. As a consequence, it claims that historic dividends repatriated by MTN Nigeria between 2007 and 2015 amounting to USD 8.1 billion need to be refunded to the CBN.
In its latest statement, the central bank said the "recent sanctions on the banks arose due to irregularities with respect to repatriations made on behalf of MTN Nigeria Limited and were not in any way designed to restrict access to investor returns." The bank added that "the integrity of the CCI regime remains sacrosanct and there shall be no retroactive application of foreign exchange rules and regulations."
