$2 Billion Tax Dispute: MTN Nigeria Shares Plunges To Lowest Level Since Listing

June 28, 2019
128 Views

Following the Wednesday adjournment of the tax dispute lawsuit between Nigeria and telecommunications giant, MTN Nigeria, the shares of the company have dropped on Thursday to their lowest level since the firm was listed last May.

The court case between Nigeria and MTN Group was adjourned until October 29.

Analysts said the court adjournment created uncertainty for investors as the tax dispute would continue to linger, Reuters reports.

Shares in MTN, the local unit of South African telecoms group MTN Group, dropped 2.4% to N128.75 each, their lowest level since May 21.

They were still above their initial public offer price of N99 when the company listed on May 16.

Nigeria’s attorney general, Abubakar Malami hit MTN Nigeria with a $2 billion tax bill last September.

MTN Nigeria listed with a valuation of N2 trillion, making it the second-biggest company on the Nigerian Stock Exchange.

It climbed to as high as N159.30 in the days after listing.

The listing came after the South African group resolved another dispute in Nigeria over unregistered SIM cards.

In December, it made a $53 million payment to resolve a money transfer allegation out of Nigeria, levelled by the central bank.

Nigeria is MTN’s biggest market, with 58 million users in 2018 and accounting for a third of the group’s core profit.

MTN has said it would sell more shares to the public and increase local ownership in MTN Nigeria once the tax row was resolved.

You may be interested

Buhari, Bello, North’s Speakers, ACF mourn Wushishi
News
News

Buhari, Bello, North’s Speakers, ACF mourn Wushishi

Webby - December 6, 2021

By Bolaji Ogundele, Abuja and AbdulGafar Alabelewe, Kaduna President Muhammadu Buhari, Kogi State Governor Yahaya Bello, Speakers of the 19…

CJN speaks on state of judiciary Wednesday
News
6 views
News
6 views

CJN speaks on state of judiciary Wednesday

Webby - December 6, 2021

Chief Justice of Nigeria, CJN, Justice Ibrahim Tanko Muhammad, will make an address on the state of the judiciary on…

Buhari, Obasanjo mourn former Army Chief Wushishi
News
3 views
News
3 views

Buhari, Obasanjo mourn former Army Chief Wushishi

Webby - December 6, 2021

ABUJA – President Muhammadu Buhari has described the death of former Chief of Army Staff, General Mohammed Inuwa Wushishi, as…

Leave a Comment

Your email address will not be published.