$8.1bn Fine: MTN Explores Outof-court Settlement with CBN

Indications have emerged that MTN is exploring the possibility of an out-of-court settlement with the Central Bank of Nigeria (CBN) over the $8.1 billion fine slammed on the telecoms firm last August.

MTN had filed a suit to challenge a directive by the CBN directing it to return the $8.1 billion, which the apex bank said was illegally repatriated.

When the case was called yesterday, MTN’s lead counsel, Chief Wole Olanipekun (SAN), said his client had decided to pursue an out-of-court settlement with the CBN.

Olanipekun said his client had approached CBN for an amicable settlement and this was confirmed by Seyi Sowemimo, CBN’s lead counsel, who told the court that the negotiations were already in an advanced stage.

Olanipekun said, “May it please your lordship, the matter today, is slated for hearing of pending applications, but we owe the court a duty to inform it that parties are engaged.

“Counsel have conferred, and in view of this, we are asking for a short date for report,”

On his part CBN counsel, Sowemimo, said, “We have advanced stages towards settlement, and it remains to cross the Ts and dot the Is; it is just for report of settlement.”

MTN had filed the suit, seeking an injunction to restrain the CBN and the AttorneyGeneral of the Federal (AGF) from taking further actions to reclaim the alleged debts.

The firm asked the court to hold that the CBN lacked the power to determine its civil obligations or penal liabilities.

It urged the court to declare that the CBN acted outside its statutory powers when it wrote a letter to it on August 18, demanding a refund of $8.1 billion.

It asked the court to hold that the demand was illegal, oppressive, abusive, unauthorised and unconstitutional.