Telecom
FG Targets MTN for Cash as Buhari Govt. Tightens Rules Ahead 2019 Elections- Expert
The many troubles of MTN group in Nigeria may both economic and political play the federal government of Nigeria, according to Ron Klipin, an analyst at Cratos Wealth in Johannesburg.
Klipin, was reacting as federal government has slammed MTN Nigeria with a $2 billion tax demand.
This is another curve ball directed at Africa’s biggest wireless carrier less than a week after it was ordered to refund $8.1 billion in illegally repatriated funds.
Klipin in a chat with Bloomberg said about the fines that “This could be an economic and political play by Nigeria”.
“The Nigerian economy is looking for additional sources of revenue and at the same time the government wants to be seen as tightening up the regulatory framework in the country.” Klipin added.
The additional scrutiny on MTN comes as President Muhammadu Buhari seeks re-election for a new four-year term in a February vote.
Buhari
His administration has pledged to fight corruption in Africa’s most populous nation, including tax avoiders and companies acting unscrupulously.
MTN continues to strenuously deny the allegations being made by the Central Bank of Nigeria and has provided further clarity on the company’s position.
MTN on its own said it had been in talks with Abubakar Malami, Attorney-General, over concerns around tax compliance; but it was billed all the same.
The company in a statement said it was billed for importation of foreign equipment and payments to foreign suppliers, all spread across a period of about ten years.
MTN outlined the tax dispute and refuted both accusations in a statement on Tuesday, yet faces an uphill battle to convince investors it won’t end up shelling out for either or both offenses in its largest market. The shares extended their slump, falling 17 percent to an almost 12-year low by the close in Johannesburg.
“We remain resolute that MTN Nigeria has not committed any offenses and will vigorously defend its position,” the Johannesburg-based company said.
The office of Nigeria’s attorney general calculated that MTN owes $2 billion related to the import of foreign equipment and payments to suppliers over the past decade.
It asked the South African company to carry out a self-assessment in response, but last week rejected the company’s findings, which concluded that it had owed — and paid — $700 million.
MTN reported the ongoing dispute for the first time Tuesday.
Last week, the Nigerian central bank told MTN to return funds it alleges the company illegally transferred out of the country over eight years through 2015.
That accusation put the carrier’s planned share sale in Lagos in jeopardy, while the sanctions may restrict its ability to pay dividends.
On the CBN allegations, MTN said that it is both regrettable and disconcerting that despite the historic engagements with the Nigerian authorities by MTN Nigeria, the senate investigation into the CCI matter, and the multiple tax assessments done by the Nigerian tax authorities over many years that were satisfactorily concluded, that these matters are being reopened.
Tobe Okigbo MTN Corporate Relations Executive said: “From the CBN’s own letter and subsequent statements, it is clear that there is no dispute that the capital captured in MTN’s books and for which CCIs were issued was imported into Nigeria, and this is acknowledged explicitly by the CBN.
It is equally clear that Nigerian law provides for guaranteed unconditional transferability of funds through an Authorised dealer in freely convertible currency relating to dividends or profits attributable to the investment, payments and in respect of loan servicing where a foreign loan has been obtained.”
He went on to say: “All dividend repatriation done by MTN Nigeria to its shareholders was done on the basis of its equity capital and all the historic dividends were declared against valid equity CCIs and in fact no preference dividends were declared and no interest in respect of these preference shares was paid. This means that it is incorrect to suggest that the conversion of a shareholder loan to preference shares has any relation to the repatriation of dividends. The two are simply not connected and we are trying to understand this position that the Central Bank has taken.”
Speaking on the Attorney General’s ‘demand notice’ for historical tax obligations, Mr Okigbo said: “MTN has conducted a detailed review of these claims, and provided evidence of tax remittance to the Attorney General’s office.
The Attorney General’s notice indicates that he is rejecting this evidence. We believe that all taxes due to the Nigerian government have been paid and these allegations have not been raised by any of the revenue generating agencies that MTN engages with regularly, and from whom MTN has received numerous awards for compliance.”
MTN Nigeria will continue to engage with the relevant authorities on all these matters and we remain resolute that MTN Nigeria has not committed any offences and will vigorously defend its position.
Update on the CBN letter on foreign exchange
MTN Group and the original shareholders injected a total of $402, 625,419 into MTN Nigeria between 2001 and 2006 in the form of loans and equity.
These initial inflows were the basis for the issuance of various legacy CCIs obtained from Authorized Dealers in accordance with regulations. The inflow of capital has been confirmed by the CBN.
The CCI process is essentially in place both for the protection of investors as well as to provide the CBN with documentary evidence for monitoring capital inflows and outflows. Although over time the CCIs have been re-issued, consolidated and re-constituted to reflect the changing MTN capital and shareholding structure, the amount of 402, 625,419, has remained the same.
One aspect of the changing capital structure was the conversion of shareholder loans to preference shares. It is important to note that all the historic dividends were declared against valid equity CCIs and in fact no preference dividends were declared and no interest in respect of these preference shares was paid.
The Attorney General’s notice of intention to recover tax
The Attorney General notified MTN that his office made a high-level calculation that MTN Nigeria should have paid approximately $2,0 billion in taxes relating to the importation of foreign equipment and payments to foreign suppliers over the last 10 years and he requested MTN Nigeria to do a self-assessment of the taxes in this regard that have been actually paid.
In August 2018 MTN submitted comprehensive documentation to the office of the AG. MTN Nigeria has also completed an initial assessment of the full period which indicates that total payments made to the tax authorities in regard to these foreign imports and payments in aggregate are $700 million.
There are valid reasons for the differences between the actual payments and the AG high-level assessment.
We were notified by the office of the AG last week that they have not accepted the documentation presented and they have given notice of an intention to recover the $2.0bn from MTN Nigeria.
Based on the detailed review performed MTN Nigeria believes it has fully settled all amounts owing under the taxes in question.
Telecom
Africa’s Lawmakers Commit to Strengthening AI, Digital Health and Smart Manufacturing Frameworks
The Pan-African Parliament (PAP) and the African Population Health Research Center (APHRC), in collaboration with the GSMA, have concluded the first Africa Digital Parliamentary Summit focused on building legislative capacity in Artificial Intelligence (AI), data protection, digital health and smart manufacturing, in a bid to promote evidence-based policy-making for Africa’s digital future.
The three-day Summit, held from 9-11 July in Lusaka, convened over 20 Members of Parliament from the Pan-African Parliament Committees on Transport, Industry, Communications, Energy, Science and Technology, and Health, Labour and Social Affairs and was opened by the Zambian Minister of Technology and Science, Honourable Felix Mutati. Strategic partners in attendance included AUDA-NEPAD, Africa CDC, ECOSOCC, and the African Peer Review Mechanism (APRM).
This concluded with the publication of the Lusaka Declaration outlining shared priorities and next steps for ensuring Africa’s digital transformation is inclusive, responsible and grounded in evidence-based policy.
The Lusaka Declaration recognised the vital role of Members of Parliament in shaping laws and policies that drive the continent’s development. The Digital Parliamentary Summit offered a timely platform to enhance the knowledge and capacity of Parliamentarians on critical aspects of digital transformation.
A key highlight of the Summit was the consideration and discussion with Parliamentarians on the draft Africa Digital Health and Smart Manufacturing reports developed by APHRC and the GSMA.
Both reports will be submitted to the Plenary of the PAP when Parliamentarians of the 55 member states of the African Union meet in Midrand later this month on the occasion of the 5th Ordinary Session of the 6th Legislature of the Pan-African Parliament.
Honourable Behdja Mokrani, Chairperson of the Pan-African Parliament Committee on Transport, Industry, Communications, Energy, Science and Technology said “Against the backdrop of global economic uncertainties and the accelerating pace of technological disruption, this Summit has highlighted the critical need to equip African legislators with the foresight and capabilities required to navigate the Fourth Industrial Revolution.
The capacity-building component of the Summit, along with the presentation of the Africa Digital Health and Smart Manufacturing Reports by APHRC and GSMA, reinforced the importance of African policymakers acquiring the relevant skills to address policy issues related to digital transformation – particularly in the areas of Digital Health and Smart Manufacturing – in alignment with the African Union’s Agenda 2063.
Anthony Mveyange, Director of Programs, Synergy, African Population Health Research Center adds “At APHRC, we firmly believe that digital health is a transformative force, holding immense potential for Africa to ‘leapfrog’ traditional development pathways.
This Summit powerfully demonstrates how, by leveraging AI alongside advancements in digital health and smart manufacturing, we can accelerate socio-economic progress and foster deeper continental integration, directly aligning with the ambitious goals of the African Union’s Agenda.”
Key themes explored during the Summit included:
- The potential of AI-driven digital health to accelerate universal health coverage through better data integration and cross-border information exchange
- The role of smart manufacturing in enhancing industrial resilience and job creation through automation and IoT
- The need for harmonised, Africa-led data governance frameworks to ensure responsible AI development and protect privacy and human rights
“AI, digital health, and smart manufacturing have the potential to transform Africa’s economies and improve lives – but unlocking that potential requires the right policy environment.
“This Summit is an important step in equipping lawmakers with the tools to shape secure, inclusive and future-ready digital economies” said Kenechi Okeleke, Senior Director, Regional, Social and Policy Research, GSMA.
Participants reaffirmed their commitment to advancing digital transformation through coordinated reforms, including:
- Strengthening STEM education and digital literacy among policymakers
- Embedding ICT training in public service development
- Establishing cross-sector collaboration between the health, trade and ICT sectors
- Creating enabling conditions for investment in advanced connectivity infrastructure
Draft findings presented during the Summit estimate that Africa’s digital health market could reach $6.5 billion by 2030 under an optimistic scenario, highlighting the urgent need for policy alignment to maximise impact and drive inclusive growth.
The Summit also set out a roadmap for ongoing engagement between the Pan-African Parliament, APHRC and the GSMA, including the establishment of ‘Evidence-to-Policy’ resource units, sustained capacity-building efforts, and regional forums to harmonise legislation on AI, digital health, and data governance across Africa.
MTN Foundation hosted its annual Anti-Substance Abuse Programme (ASAP) Conference on July 9, 2025, at the MTN Rooftop in Ikoyi, Lagos, bringing together stakeholders from government, healthcare, education, security, civil society, and the private sector to address the growing challenge of drug abuse among Nigerian youth.
L-R: Tobe Okigbo, Chef Corporate Services Officer, MTN Nigeria; Archieabia Ibinabo, Assistant Commander General of Narcotics, representative of Brig. Gen Mohammed Buba Marwa, Chairman/CEO, National Drug Law Enforcement Agency (NDLEA); Barrister Abimbola Salu-Hundeyin, Secretary to the Lagos State Government, (representative of His Excellency, Governor of Lagos State, Mr. Babajide Sanwo-Olu); RT. Honourable Princess Lasbat Mojisola Meranda, Deputy Speaker, Lagos State Assembly; Dr. Mosun Olusoga, Chairman, MTN Foundation; Odunayo Sanya, Executive Director, MTN Foundation, and Dr. Tolu Ajomale, Head of Special Projects and Mental Health, Lagos State Ministry of Health (representative of Prof. Akin Abayomi, Commissioner for Health, Lagos State) during the MTN Anti-Substance Abuse Programme (ASAP) Lagos Conference held in commemoration of World Drug Day at the MTN Rooftop, Ikoyi, Lagos on Wednesday, July 9, 2025.
Prominent attendees included Dr. Mosun Olusoga, Chairman of MTN Foundation; Barrister Bimbola Salu-Hundeyin, Secretary to the Lagos State Government; and Dr. Tolu Ajomale of the Lagos Ministry of Health, among others. Also present were representatives of NDLEA, UNODC, academia, psychologists, recovery advocates, and youth leaders.
Speaking on behalf of Governor Babajide Sanwo-Olu, Salu-Hundeyin reaffirmed Lagos State’s commitment to safeguarding its youth and fostering a future free from substance abuse. Dr. Olusoga emphasized that drug addiction extends beyond health, touching families, communities, and national well-being, calling for proactive, united action.
MTN Nigeria’s Chief Corporate Services Officer, Tobe Okigbo, stressed the company’s long-standing dedication to youth development through initiatives like ASAP. NDLEA’s Assistant Commander General of Narcotics, Archieabia Ibinabo, representing Brigadier General Buba Marwa, commended MTN Foundation as a vital ally in drug prevention efforts.
The conference featured personal stories of recovery in a session titled “Journeys Through the Fire,” followed by a panel discussion on multi-sectoral solutions to substance abuse. It concluded with a dramatic performance, “Just One Breath,” by LASU’s WADA Club, illustrating the personal and societal toll of drug use.
Executive Director of the MTN Foundation, Odunayo Sanya, closed the event with a powerful call to action, urging media, communities, and policymakers to drive sustained investment in youth empowerment and early intervention.
The Foundation reaffirmed its commitment to building resilience among young Nigerians and catalyzing cross-sector partnerships for a drug-free future.
MUSON Centre, Onikan, Lagos, was filled with music, pride and emotion on Thursday, July 4, as the Class of 2025 of the MTN Foundation–MUSON Diploma in Music graduated in a ceremony that celebrated discipline, artistry and the power of partnership in nurturing young Nigerian talents.
The event marked the culmination of two years of intensive training for the graduating scholars, supported by the MTN Foundation–MUSON Scholarship Programme. This partnership has provided full scholarships to hundreds of talented Nigerians, giving them access to world-class music education and helping them hone their skills as professional musicians.
Speaking at the ceremony, Dr. Mosun Olusoga, Chairman of the MTN Foundation, praised the graduates for their resilience and dedication. “Despite personal and financial obstacles, you showed up with determination, supported one another and embodied the values of excellence and empathy. You are stepping into the world as teachers, performers and cultural advocates. Nigeria and the world need your music now more than ever,” she said.
Chairman of MUSON’s Board of Trustees, Louis Mbanefo, SAN, reflected on the legacy of MUSON and the impact of its partnership with MTN. “Through the generosity of MTN and the dedication of our faculty, MUSON has produced more than 500 graduates who are making significant contributions to Nigeria’s cultural scene and beyond. As you join this vibrant alumni community, remember your responsibility to give back, uphold excellence and enrich the nation’s musical heritage,” he said.
Director of the MUSON School of Music, Princess Banke Ademola, described the graduates as ambassadors of discipline and artistry. “Today, we are not just sending graduates into the world; we are releasing ambassadors of discipline, creativity, and cultural excellence. Each of you has proven that with hard work and resilience, music can transcend challenges and inspire change. Go out there and let your music heal, connect, and transform lives.”
In her speech, Chief Mrs. Joke Chukwuma, Yeye Oba Iye of Ekiti Kingdom, encouraged them to use their music to inspire change and heal communities. “Music is the heartbeat of our culture, and today’s graduates are its future custodians. You are not just musicians; you are storytellers and architects of emotion. Carry your craft with pride and remember that your sound has the power to give voice to the voiceless and light to the world.”
As the graduates received their diplomas to loud applause, the event highlighted the impact of public-private collaboration in advancing Nigeria’s creative industries. The MTN Foundation–MUSON partnership continues to inspire hope for the future of music in Nigeria, turning dreams into reality and passion into excellence.
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