Home Business FG withdraws $2bn tax demand from MTN – report

FG withdraws $2bn tax demand from MTN – report

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Nigeria’s Minister of Justice and Attorney General, Abubakar Malami has withdrawn a demand for MTN to pay around $2 billion in back taxes, in the latest step towards resolving its legal woes with the authorities.

The company, in a statement issued on Friday, said the attorney general’s office had “withdrawn its letter of demand” for the back taxes and referred the matter to the inland revenue and customs services to be resolved.

“We appreciate this decision of the Attorney General which paves the way to an orderly and amicable resolution of this matter,” MTN Group CEO Rob Shuter said in a statement.

MTN, which began operation in Nigeria in 2001, is the country’s largest operator with some 60 million subscribers.

The South African telecommunications firm has already battled back a string of financial claims from Nigeria and last May floated its shares on the stock exchange in the West African country.

The company last year settled a $1.5 billion fine levelled by the Nigerian Communications Commission (NCC) for failing to disconnect unregistered subscribers.

In 2018 it agreed to pay a separate $53 million fine after being accused of illegally repatriating $8.13 billion to South Africa.

The disputes with MTN have rattled investor confidence in Africa’s most populous nation and tarnished diplomatic relations between continental powerhouses Nigeria and South Africa.