Following ongoing  Senate investigation of illegal remittance of money to South Africa by MTN Nigeria, the telecom giant has been barred by the Central Bank of Nigeria, CBN, from remitting dividend  from its Nigerian subsidiary to MTN Group, until further notice.

In a quarterly update to shareholders, MTN Group announced that CBN had ordered the four commercial banks, Standard Chartered Bank, Stanbic IBTC, Diamond Bank and Citi Bank, to suspend dividend payout from Nigeria. The banks were accused of being complicit in the alleged illegal transfer of the sum $13.97 billion out of Nigeria.

The update read:

“MTN Nigeria, four commercial banks, certain MTN Nigeria directors and shareholders, the Central Bank of Nigeria and others appeared before the Senate on 20 October 2016 at the outset of this investigation.

“The allegations are that $13.97 billion was repatriated illegally by MTN Nigeria through its bankers. MTN Nigeria and its bankers are cooperating with the investigation with a view to resolving the matter as expeditiously as possible.

“In the interim, the CBN has instructed the banks to suspend any remittance of dividends until further notice. MTN Nigeria continues to refute the allegations that MTN Nigeria had improperly repatriated funds from Nigeria.

“Consequently, MTN Nigeria will strongly defend any action that would be prejudicial to its interest. MTN Nigeria has no intention to make any dividend payments over the next six months.”

Senator Dino Melaye had told a stunned Senate how MTN in concert with four banks and  the Minister of Trade and Investment, Okechukwu Enelamah, exploited the Nigerian financial system to illegally move the said sum out of the country without the required authorization and due process. However, while appearing before the Senate committee on Banks, Insurance and Other Financial Institutions to defend itself admitted to moving the said amount but insisted that it did not flout any aspect of Nigerian law in the process.