MTN gets reprieve as Nigeria’s CBN reconsiders $8.1 billion fund recall

MTN gets reprieve as Nigeria’s CBN reconsiders $8.1 billion fund recall

MTN Group Limited, Africa’s largest mobile carrier has received some respite on the standoff with Nigeria’s central bank over alleged $8.1 billion illegal repatriation.

The CBN said it is reviewing documents submitted by MTN Nigeria and that its sanctions was not aimed at scaring foreign investors.

It would be recalled that the Central Bank of Nigeria, CBN, ordered MTN Nigeria, the carrier’s local unit to return $8.1 billion illegally transferred out of Nigeria.

“The statement suggests there are some talks going on and the market welcomed the less harsh tone by the Nigerian central bank,” said Ruhan Du Plessis, telecoms analyst at Avior Capital Markets.

“It is looking more likely that MTN will not have to pay back the for amount after all as the market feared. The market has welcomed the progress.”

While this is a speculation, there are signs that the sanctions might be lenient than expected.