The Nigerian government and MTN have agreed an out-of-court settlement after Africa’s largest mobile phone company was accused on taking $8bn (£6bn) out of the country illegally. The government said the South African firm had contravened foreign exchange regulations and had ordered it to return the money.
It also demanded $2bn in related taxes from the company. MTN – which has 50 million customers in Nigeria – denied it illegally transferred money abroad and filed a suit challenging the fine. The giant telecommunication company – which is Africa’s largest phone company – was hit with a $5bn fine by Nigeria’s telecommunications regulator in 2015 for missing a deadline to disconnect unregistered subscribers. The fine was later reduced to $1.7bn. Details of the settlement have not been made public by the parties but there are indications the dispute triggered fears among other investors.