Senate Probes MTN Over $13bn Transfer

The Nigerian Senate is probing Africa’s biggest telecoms company MTN for alleged illegal transfer of $13.92 billion out of the country.

Senators Tuesday agreed to begin the investigation and then the members who resumed this week after a long holiday adjourned plenary till Thursday.

MTN declined to comment on the Senate decision.

With 62 million subscribers, Nigeria is MTN’s biggest market.

A motion

MTN shares were down by 4.20 per cent, at 2.46pm (13:46 GMT) on Tuesday.

The cash transfer allegation was made in a motion submitted to the Upper House by Senator Dino Melaye, which said $13.92 billion had been repatriated “illegally” out of Nigeria by MTN through its bankers between 2006 and 2016.

The investigation threatens to raise tensions between Nigeria and the South African firm, just three months after MTN agreed to pay a reduced fine of $1.05 billion (330 billion naira) in a settlement with the Abuja government over unregistered SIM cards.

The first time

The move comes as Nigeria’s economy plunges into recession for the first time in more than 20 years.

The Upper House agreed that its committee on banking, insurance and other financial institutions would “carry out a holistic investigation into the matter and report back to the Senate”.

MTN is the largest mobile phone operator in Nigeria, which accounts for around one third of the company’s revenues.

External reserves

The company had threatened to pull out of Nigeria during the dispute over the unregistered SIM cards.

Sen Melaye said last week: “My respected colleagues, MTN Nigeria paid a sum of $284.9 million on the 6th of February, 2001, to purchase their licence of operations in this country.

“Between 2006 and 2016, through four Nigerian Banks and a serving minister of the Federal Republic of Nigeria, MTN moved over $12 billion out of Nigeria.

“That is about half of our external reserves,” he said.