MTN Group has received a reprieve in Nigeria following the withdrawal of its back taxes case in the West African country. In the latest development, MTN Nigeria has been informed by its legal team that following careful review and due consultation with relevant statutory agencies, the Attorney General of the Federal Republic of Nigeria and Minister of Justice (AGF) has decided to refer the matter to the relevant authorities, being the Federal Inland Revenue Service (FIRS) and Nigeria Customs (NC), with a view to them resolving the issues.
The letter announcing the development was delivered on January 8, 2020. Accordingly, the AGF has thereby withdrawn its letter of demand for US $2 billion in back taxes that was issued in August 2018.
On September 4, 2018, MTN announced that its Nigeria subsidiary was disputing a claim for back taxes of approximately US $2 billion by the AGF. Afterwards, MTN Nigeria commenced legal action in Nigeria against the AGF, a matter that was most recently postponed to January 30, 2020.
In response, MTN Nigeria has stated that it will “consequently follow due court process to withdraw its legal action against the AGF and engage with FIRS and NC on this issue,” adding that the telco “remains committed to building and maintaining cordial relationships with all regulatory authorities in Nigeria.”
Commenting on the news, MTN Group CEO, Rob Shuter said: “We appreciate this decision of the Attorney General which paves the way to an orderly and amicable resolution of this matter. MTN remains fully committed to meeting our fiscal responsibilities and contributing to the social and economic development of Nigeria and all regions where we operate.”
In July, MTN Nigeria – the market leader in the country with 36.5 per cent of the market share in September 2019 according to Statista – reported that its mobile subscribers increased to 61.5 million in the first quarter of 2019 according to financial results for the first quarter of 2019.
In the first half of 2019, MTN Nigeria added 3.3 million customers to its network, increasing the overall subscriber base to 61.5 million. At the same period, data subscribers increased by 2.1 million to 20.7 million.
Nigeria is MTN Group’s biggest market, accounting for over one third of the group’s profits, even though its subscriber numbers have been declining over the years.
Be the first to comment