Nigeria: CBN, MTN and 4 Banks - What Lessons?

24 September 2018

The furore generated so far on the $8.1billion and N5.87billion sanction by the Central Bank of Nigeria (CBN) on MTN Nigeria and four banks has been one of mixed grill, laced with sentiments depending on which divide one belongs to. Some felt CBN's action amounted to witch-hunting, forgetting the apolitical stance of the Bank. Some canvassed that CBN should have been circumspect in handling the matter as its decision may send out wrong signals from a country in dire need of foreign investments. To others, what the CBN did was commendable and the outcome of a thorough investigation irrespective of the number of years it took. Most keen observers were not surprised because the South African leading telecommunication giant was synonymous with controversies in its operations which is lacking in good corporate governance.

MTN operates in 24 countries in Africa and few Asian countries. Among the countries are: Botswana, Cameroon, Cote d'Ivoire, Liberia, Rwanda, South Africa, Republic of Congo, Zambia, Swaziland, Uganda, Sudan, Guinea Bissau, Benin Republic, Yemen, Syria, Iran and Afghanistan, among others. But what many seem ignorant of about MTN is that it has always embraced controversies where it operates. Aside the sanction on the illegal repatriation, is the issue of tax default of about $2billion as alleged by the Minister of Justice and Attorney General, Abubakar Malami, then comes the sanction of the negotiated N303billion fine by the Nigerian Communications Commission, NCC, of which 50 per cent of the sum has so far been paid.

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