$1.8bn repatriation: Experts laud MTN out-of-court settlement

Financial experts on Monday lauded the Federal Government’s out-of-court resolution with MTN on the 1.8 billion dollars repatriation, saying it would hasten its listing on nation’s bourse.

The financial experts told our correspondent in separate interviews in Lagos that the out-of-court resolution was a good development.

They said that the development would signal to the whole world that Nigeria was not a hostile environment after all.

It was reported that the CBN, in September, said that it had investigated the activities of the MTN and four banks in connection with the “illegally repatriated dividends” of $1.8 billion between 2007 and 2016.

MTN Nigeria Communications Ltd said recently that it had reached an agreement with the CBN over the $ 1. 8 billion being demanded from it by the apex bank .

The $1.8 billion demanded by the CBN followed alleged foreign exchange remittances infraction by the MTN.

Prof. Uche Uwaleke, Head of Banking and Finance Department, Nasarawa State University, Keffi, said that the development showed that Nigeria had a listening government.

Uwaleke said that the development would now facilitate listing of the MTN on the Nigerian Stock Exchange (NSE), earlier scheduled for 2018.

“MTN will now hurry up listing of the company’s shares on the NSE,” he said.

Uwaleke said that MTN had the plan for 2018 before the repatriation issue came up, and thus shunned the plan.

He, however, said that the economic situation generally contributed to MTN’s inability to list in 2018, noting that 2019 would be a better year, with free and fair elections.

Prof. Sheriffdeen Tella, a Professor of Economics, Olabisi Onabanjo University, Ago-Iwoye, Ogun, described the out-of-court resolution of the problem between the MTN and the CBN as a welcome development.

Tella said that the nation’s economy was too huge to be ignored by the MTN, saying “MTN needs Nigeria just as Nigeria needs it.

“The country is a big market for the company to ignore, and its participation in the stock market is capable of deepening the capital market. It is going to be a symbiotic relationship,” he noted.

Tella said that MTN should go ahead to seek business expansion through listing on the Nigerian capital market, following due process.

He noted that the action of the CBN had sent a message to MTN and other multinational companies that the laws of the host country must be respected.

Tella observed that there must be mutual respect in investments and economic relationship.

According to him, multinationals must adhere strictly to investment rules and laws in country they operate in.