The South African Reserve Bank has said the Federal Government and MTN’s impasse may increase risk in South Africa’s financial system.
The Central Bank of Nigeria (CBN) had in August mandate MTN to refund to the Federal Government $8,134,312,397.63 reportedly repatriated to South Africa illegally.
Also, the firm is battling a $2 billion tax demand from Nigeria’s attorney general.
In the South African Reserve Bank Financial Stability Review released on Wednesday in Pretoria, it noted that “The immediate, or at least near-term, repatriation of the funds to the Nigerian authorities could affect MTN Group’s ability to continue meeting its debt obligations, including those in the South African banking sector, which, given the interconnected nature of the financial system, could increase systemic risk.
“The claims amount to almost all of MTN’s market value of about $12bn.”