MTN Nigeria, a subsidiary of MTN Group, Africa’s leading telecommunications company, has announced that the Attorney-General of the Federation (AGF) and the Ministry of Justice has formally withdrawn the demand of N242.24billion and $1.3 billion alleged revenue indebtedness.
According to a statement by the mobile-phone company on Friday, its legal counsel received a letter dated 8 January 2020 from AGF declaring the withdrawal.
MTN Nigeria said the AGF came to the decision to withdraw the case after it carefully reviewed and consulted relevant statutory agencies.
“We are very pleased with the decision of the AGF and we commend him for his wisdom,” Ferdi Moolman, the CEO of MTN Nigeria, said.
The issues will however be transferred to the Federal Inland Revenue (FIRS) and Nigerian Custom Service (NCS) with a view of resolving contentious issues.
“MTN Nigeria will consequently follow due court process to withdraw its legal action against the AGF and engage with the FIRS and NCS on the issues,” MTN Nigeria said in a statement.
MTN Nigeria had filed a suit against the Attorney General of the Federation, over alleged N242 billion and $1.3b import duties and withholding tax assessments in September, 2018.
The telecom giant was challenging mainly the legality of the AGF’s assessment of its import duties, withholding tax and value-added tax in the sums of N242 billion and $1.3b.
MTN Nigeria was seeking among other declaratory reliefs, a declaration that the AGF’s demand of the sums of N242 billion and $1.3b from MTN was premised on a process which was malicious, unreasonable and made on incorrect legal basis