Emefiele meets MTN, banks over $8.1bn repatriation row

Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, met representatives of telecommunications company, MTN, and four banks yesterday to discuss a dispute over the repatriation of $8.1 billion, Reuters reported, citing two sources with direct knowledge of the matter. The dispute is over the transfer of $8.1 billion of funds, which CBN said the telecoms firm had sent abroad in breach of foreign-exchange regulations.
According to the news agency, the sources said executives from MTN and the four lenders involved in the case – Standard Chartered, Stanbic IBTC Bank, Citibank and Diamond Bank – held talks with the apex bank’s boss.
The move comes two days after Emefiele said the regulator may reduce the amount to be repatriated. On Sunday, he said in London that MTN had provided more documents on the issue that may lead the CBN to reducing its $8.1 billion claim on the telecoms giant.
CBN alleged in late August that MTN and four banks -Standard Chartered Plc, Citigroup Inc., Stanbic IBTC Plc and Diamond Bank Plc – illegally repatriated money from Nigeria and that the company should return $8.1 billion. The banking watch dog also fined the four banks a combined N5.87billion.
Emefele 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.” He was further quoted as saying that “they will see they have been given a fair hearing.
More information has been provided and I’m very optimistic that matters are going to be resolved amicably.’’
MTN sought an injunction early last month to fight the claim in its biggest market, which wiped as much as 36 per cent off its market value within two weeks. Emefiele reportedly said the MTN issue 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 matter “isolated’’ and no reason “for anyone to lose any sleep.’’
“This is not a matter that should have blown so openly. Nigeria is a country that happens to be very, very open,” Bloomberg quoted him as saying. CBN filed a counter-claim last Friday to a court request by MTN, which is seeking to stop the bank from forcing it to bring back the$8.1billion, according to MTN’s lawyer.
In court documents seen by Bloomberg, the CBN is also asking that the MTN Group Ltd. should pay 15 per cent annualised interest on the sum until the courts make a judgment, and 10 percent from then until the whole amount is paid.