South African telecom giant, MTN, appears not have suffered any loss following the Central Bank of Nigeria’s (CBN) fine last month.
The apex bank ordered MTN and four banks to return $8.1 billion back into Nigeria that they allegedly sent abroad in breach of foreign exchange regulations.
In response, the telecom firm took the case to the Federal High Court restraining the CBN and Attorney General of the Federation (AGF) from enforcing the orders.
A massive decline in the company’s business was expected.
However, that isn’t the case as MTN shares rose by 5 per cent on Thursday.
This comes barely 24 hours after the CBN said it was reviewing the information provided by the telecom firm and four banks over a dispute on the repatriation of dividends.
“The statement suggests there are some talks going on and the market welcomed the less harsh tone by the Nigerian central bank,” said Ruhan Du Plessis, telecoms analyst at Avior Capital Markets.
“It is looking more likely that MTN will not have to pay back the for amount after all as the market feared. The market has welcomed the progress.”
