Nigeria's central bank has dismissed reports that MTN may refund $8.1 billion demand in local currency

MTN Group Ltd. will not get a naira-denominated benefit to refund the

News reports filtered on Monday, September 3, 2018, that the South African phone company may receive a naira-denominated refund for the CBN $8.1 billion demand.

CBN says refund will be in dollar

But Isaac Okoroafor, CBN's spokesperson told Business Insider Sub-Saharan Africa on Tuesday morning, September 4, 2018, that the regulatory authority's demand is very clear on the matter.

“The report is very clear, what we have here is in dollar terms and not naira”, he said in a phone conversation.

Experts believed that the sanction which is about half of MTN’s market capitalisation will affect market conditions in Nigeria and could threaten the country's financial institutions.

CBN hammers fine on 4 banks

Last week, Nigeria's central bank (CBN) ordered Africa's telecoms giant, MTN “refund a total of $8.134billion moved out of the country" for breaching the country's forex regulations.

The bank also slammed a huge N5.8 billion fine on the banks for allegedly aiding MTN in the illegal capital repatriation.

The affected banks and their fines are Standard Chartered Bank (N2.4 billion), Stanbic IBTC (N1.8bn), Citibank (N1.2bn) and Diamond bank with N0.25 billion.

MTN denies CBN's claim

MTN denied involvement in any wrongdoing while some banks said they are currently in talks with the monetary authority.

Rob Shuter, the Group CEO of MTN also stated that the apex bank's sanction will complicate the IPO processes. He, however, said MTN is continuing with the listing process.

Last Friday, Herbert Wigwe, Access Bank CEO, said, the bankers' committee will intervene in the current forex issues between Nigeria and MTN.

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