The latest announcement by the Attorney General of the Federal Republic of Nigeria and Minister of Justice is good news for MTN Group, which has started the year with Iran crisis and US lawsuit.
MTN Group announced on Friday that its Nigerian unit has been informed by means of a letter that the Attorney General and Minister of Justice has withdrawn a $2 billion tax demand against MTN Nigeria.
They have referred the matter to Nigerian tax authorities.
The letter was received by MTN’s legal counsel 8 January 2020.
MTN said the letter states that “…following careful review and due consultation with relevant statutory agencies, the AGF has decided to refer the matter to the relevant authorities, the Federal Inland Revenue Service and Nigeria Customs, with a view to them resolving the issues.” M
The company said the Attorney General has withdrawn its letter of demand for the $2 billion that was issued in August 2018.
On 4 September 2018, MTN announced that MTN Nigeria was disputing a claim for back taxes of $2 billion by the Attorney General. Subsequent to this, MTN Nigeria commenced legal action in Nigeria against the Attorney General, which court action was most recently postponed to 30 January 2020.
MTN said its Nigeria unit will consequently follow due court process to withdraw its legal action against the Attorney General and engage with Federal Inland Revenue Service and Nigeria Customs on this issue. MTN remains committed to building and maintaining cordial relationships with all regulatory authorities in Nigeria.
“We appreciate this decision of the Attorney General which paves the way to an orderly and amicable resolution of this matter,” MTN Group CEO, Rob Shuter said.
“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.”
For more read: US-Iran Tension Compound MTN’s Woes in Risky Markets