MTN South Africa’s share price took a hard pounding recently as news broke over a $2 billion back taxes hurled on the company by authorities in Nigeria yesterday.
Trading started on the Johannesburg Stock Exchange (JSE) yesterday at 8684 ZAR also began to slid once news of the back taxes broke. The stock closed at 7225 ZAR down 16.8%. The stock has lost over 30% since the disaster began.
In dollar, market capitalization has also fallen 35.2% from $13.07 billion on the day news of the refund burst out to $8.46 billion as at yesterday.
Nigeria’s Attorney General (Mr. Abubakar Malami), while investigating corporates’ tax compliance in Nigeria, calculated that the company owes the Nigerian Government the amount of $2 billion in back taxes.
The taxes span over a ten-year period also is related to the importation of foreign equipment into the nation as well as payments to the suppliers of the said equipment.
Almost a week ago, the Central Bank of Nigeria (CBN) ordered it to refund the sum of $8.1 billion; being funds that illegally sent to South Africa over time.
In line with the growth, Nigeria’s apex bank also imposed a fine of ₦5.86 billion on the four banks which accused of facilitating the illegality; including Standard Chartered Bank, Stanbic IBTC, Diamond Bank Plc, and Citibank.