Gold bars to be exempt from tariffs, White House clarifies
(Adds attorney general statement, paragraph 4)
By Libby George
LAGOS, Jan 10 (Reuters) - Nigeria's attorney general has
withdrawn a $2 billion tax demand against South African telecoms
giant MTN Group MTNJ.J , the company and attorney general said
on Friday, in a closely watched case that investors say has
damaged Nigeria's appeal.
In a letter filed with the Nigerian Stock Exchange, MTN said
the government had decided to drop its case and refer the issue
to tax and customs authorities "with a view to resolving
contentious issues".
"We are very pleased with the decision of the (attorney
general) and we commend him for his wisdom," MTN Nigeria's Chief
Executive Ferdi Moolman said in a statement.
In a statement, the office of Attorney General Abubakar
Malami said the decision "demonstrates unflinching commitment to
the rule of law where all statutory agencies will be allowed to
independently work with a view to fulfilling their mandates."
Malami had ruled that the firm owed taxes relating to the
import of equipment and payments to foreign suppliers from 2007
to 2017. The Johannesburg-listed shares of MTN Group rose more than
5% after the announcement. Nigeria is its biggest market, with
roughly 60 million users.
The company, whose local unit listed on the Nigerian Stock
Exchange last year, said at the time that it would sell more
shares to the public and increase local ownership once the tax
row was resolved.
MTN has a contentious history with Nigerian authorities.
In 2015, the communications regulator handed MTN a $5.2
billion fine https://reut.rs/36IFw61 for failing to disconnect
unregistered SIM cards. MTN eventually reached a deal in which
the fine was cut to $1 billion.
In August 2018, MTN's shares fell by more than 20% after the
central bank demanded the company repatriate $8.1 billion https://reut.rs/2FCANHd
that it said the company had illegally sent abroad. MTN agreed
to pay $53 million https:// to settle the case.
Investment funds, banks and analysts have said the latest
tax case, as well as the previous disputes, have made foreign
investors reluctant to commit to long-term investments in the
country.
($1 = 305.9500 naira)