MTN Stock Rises After Nigeria Withdraws $2 Billion Tax Claim
17 January 2020
Nigeria withdrew a $2 billion claim for back taxes against the MTN Group, ending a 16-month long legal battle between Africa’s largest mobile operator and the authorities in its biggest market.
The telco, which vehemently disputed the claim from the start, had struggled to convince its investors that it could get the tax demand cancelled. Its shares closed at 5.3% higher in Johannesburg last week Friday after Nigeria’s Attorney General confirmed that he’d dropped the case.
This was their most significant jump since March, last year.
MTN’s CEO, Rob Shuter, said that this decision paves the way to an amicable resolution of the matter. He added that MTN remains fully committed to meeting its fiscal responsibilities and contributing to Nigeria’s social and economic development in all the regions where it operates.
Nigeria continues to be MTN’s most profitable market as the operator carries on with investments in online banking and high-speed internet services to gain more value from its customers.
The company’s local division, MTN Nigeria Communications Plc, was listed in Lagos last year and has become the second-largest company on the Lagos stock exchange.