Nigeria demands $2 billion tax arrears from MTN

Nigeria demands $2 billion tax arrears from MTN

Despite the latest directive for MTN to return $8.1 billion back to Nigeria, MTN Nigeria has been entangled in yet another regulatory confrontation.

NIgeria has now ordered MTN’s local unit in the company to pay $2 billion as unpaid tax arrears.

MTN said in a short statement that its Nigeria’s attorney general gave “notice of an intention to recover the $2 billion (1.73 billion euros) from MTN Nigeria”.

“Based on the detailed review performed, MTN Nigeria believes it has fully settled all amounts owing under the taxes in question,” said the company.

The latest request from the Nigerian company is coming less than a week after the Nigerian Central Bank requested that MTN return $8.1 billion in illegal funds repatriation. The apex bank also fined four local lenders who facilitated the funds transfer.

MTN has seen one of the most difficult operation environment in Nigeria, its largest market. In 2015, MTN was find $5.1 billion for not deactivating about 5 million unregistered lines after it was ordered to cut them out of its network.

The company later cut down the fine to N330 billion after series of negotiations. MTN has seen major falls in its share prices on the Johannesburg Stock Exchange, JSE, after several negative news scared its investor sentiments.