The Senate has mandated its Committee on Banking, Insurance and other Financial Institutions to carry out a holistic investigation into the alleged repatriation of $13.92 Billon illegally out of Nigeria by Mobile Telecommunication Limited (MTN) through its bankers between 2006 and 2016.  This came after a consideration and adoption of a motion by Sen. Dino Melaye (APC:Kogi) titled ‘‘Unscrupulous Violation of the Foreign Exchange (Monitoring and Miscellaneous) Act’’onTuesday, 27^th September, 2016.

In the motion, Sen. Melaye noted that MTN was incorporated in Nigeria as a private limited liability company on 8^th November 2000, obtained its operating license with $284,906,275.89 million on 6^th February 2001 but failed to request for a certificate of capital importation from its bankers, Standard Chartered Bank within the regulatory period of 24 hours of the inflow. In addition, that the Bank failed to notify the Central Bank of Nigeria (CBN) of the inflow contrary to the Foreign Exchange (Monitoring and Miscellaneous) Act 1995. Senator Melaye also alleged that the telecommunications giant had breached the said Act by bringing in $117, 683,987 Billion between 2001 and 2003 in three different tranches and was worried that its actions were bolstered by its collaboration with influential and unpatriotic Nigerians to loot Nigeria’s external reserves.

He was also particularly pained that the said sums were over 50% of Nigeria’s External Reserves and gave detailed particulars of some Nigerians, including the present Minister of Industry Trade and Investment, Dr. Elenemah who he accused of incorporating off shore Special Purpose Vehicles (SPVs) in Cayman Island, Mauritius and British Virgin Islands to move out money for MTN.  According to him, Dr. Okechukwu Elenemah is the, owner of CELTELCOM investment Limited situate at Mauritius and invested in MTN. That on 7^th February, 2008, Dr. Enelemah got his certificate of capital importation after which he closed his investment in Nigeria after receiving dollar payment for repatriation to New York on the same day. He also alleged that Dr Elenemah and some prominent Nigerians were offered shareholders loan and repayment to the extent of repatriation of proceeds of dividends back to MTN International South Africa through the entities and operators of SPVs and were brought on board as directors of MTN Communications in consideration for their actions.

Sen. Melaye also expressed his thoughts that it was an anomaly that after 5 years of operating in Nigeria, the Management of MTN Nigeria Limited only suddenly realized it needed a certificate of capital importation to enable it commence repatriation of funds realized from its business and directed its bankers, Standard Chartered Bank, Citi Bank and Diamond Bank to issue a certificate of capital Importation for inflows that came in 5 to 7 years ago.  However, according to the lawmaker, the request was made without approval from CBN in violation of section 15 of the Foreign Exchange (Monitoring & Miscellaneous) Act 1995 which provides amongst others that the authorised dealer should issue a certificate of capital importation within 24 hours to the investor and make returns to the CBN within 48 hours. Section 15 has been reproduced below:

• Any person may invest in any enterprise or security, with foreign currency or capital imported into Nigeria through an Authorised Dealer either by telegraphic transfer, cheques or other negotiable instruments and converted into the naira in the Market in accordance with the provisions of this Act.
• The Authorized Dealer through which the foreign currency or capital for the investment referred to in subsection (1) of this section is imported shall, within 24 hours of the importation, issue a Certificate of Capital Importation to the Investor and shall, within 48 hours thereafter, make returns to the Central Bank giving such information as the Central Bank may, form time to time, require
• The Central Bank shall furnish to the Minister, on a quarterly basis, detailed reports on the returns furnished to the Central Bank under subsection (2) of this section for information and statistical purposes only.
• Foreign currency imported into Nigeria and invested in any enterprise pursuant to subsection (1) of this section shall be guaranteed unconditional transferability of funds, through an Authorised Dealer in freely convertible currency, relating to-

• Dividends or profits (net of taxes) attributable to the investment;
• Payments in respect of loan servicing where a foreign loan has been obtained; and
• The remittance of proceeds (net of all taxes) and other obligations in the event of sale or liquidation of the enterprise or any interest attributable to the investment

• The repatriation referred to in subsection (4)of this section shall be communicated by an Authorised Dealer to the Central Bank, within fourteen days of the repatriation and the Central Bank shall furnish same to the Minister on a monthly basis for information and statistical purposes only.

Stanbic IBTC, Standard Chartered Bank, Citi Bank and Diamond Bank were also implicated as breaching the aforementioned provisions and Memorandum 22 of the CBN Foreign Exchange Manual to the sum of $4.87 Billion, $5.72 Billion, $2.98 billion and 0.35 Billion respectively.

Having made this presentation, Senate President, Dr BukolaSaraki (APC: Kwara) was of the view that the allegations were grave and therefore referred the matter to the committee on Banking, Insurance and other Financial Institutions who will give its report in 2 weeks.