Group lawyer denies Nigeria accusations

MTN HAS DENIED claims that it depleted Nigeria’s forex reserves, the group’s lawyer, Wole Olanipekun, said on Friday, after the central bank accused the company of moving $8.1 billion (R116.32bn) abroad in an ongoing row with the bank, which is battling to shore up its currency.

Nigeria is MTN’s biggest market and accounts for a third of its annual core profit. The central bank has said in its counter claim to the court that MTN contributed to depleting Nigeria’s reserves through the purchase of dollars via unapproved certificates. MTN has denied any wrongdoing.

Nigeria faced a severe shortage of dollars in 2016 caused by low oil prices, leading to a sharp devaluation of the naira. The currency crisis triggered a recession, which the country emerged from last year. MTN said in a court filing on Thursday that it paid the naira-equivalent to purchase a total of $8.1 billion from the central bank in several tranches over a nine-year period and that it did not negatively impair reserves.

Nigeria has burnt reserves to keep the naira stable. Central bank data on Thursday showed that the bank spent $2.2bn in the month to October 16, to defend the naira, while reserves fell to an eight-month low of $42.8bn. Central bank officials met with MTN and its lenders this week to discuss the dispute. The bank is looking for a resolution. | Reuters