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Is MTN Being Shaken Down By Buhari’s Government?

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President Muhammadu Buhari
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Nigeria’s costly claims against the South African company raise questions about investment security in Africa’s largest economy, according to Peter Fabricius, a consultant with Institute for Security Studies (ISS)

 

ISS partners to build knowledge and skills that secure Africa’s future.

 

Fabricius said that there’s something suspicious about the two large and unexpected charges Nigerian President Muhammadu Buhari’s government has just imposed on the largest cellphone operator in the country, South Africa’s MTN.

 

“Last month the Nigerian central bank ordered MTN to return US$8.1 billion in dividends it allegedly illegally transferred out the country between 2007 and 2015. The bank also slapped US$16 million in fines on several foreign banks for facilitating these transfers.

 

Then the attorney-general’s office demanded US$2 billion in back taxes from MTN, which vowed it was innocent of all the charges and would vigorously oppose them. The double whammy helped knock MTN’s share price by about a third, boosting shareholders’ losses to well over R100 billion since the start of 2018.

 

Coming on top of the US$5 billion fine – later negotiated down to US$1.7 billion – that Nigeria hit MTN with two years ago for failing to disconnect unregistered subscribers, this has raised questions about the motives of Buhari’s government.

 

He faces a difficult re-election campaign in February. A major part of his mandate from his first election in 2014 was to combat corruption and enforce financial regulations. So is clamping down on MTN a genuine attempt to improve governance? Or is it more about fleecing an easy target – a rich foreign company – when low oil prices and mismanagement of the economy have slashed revenue and badly depleted foreign reserves?

 

There are good reasons to be sceptical about the hit on MTN. For one thing, as Dobek Pater, director of business development at Africa Analysis, told Biznews, how was it that the Central Bank of Nigeria and the tax authority failed to detect both the allegedly illegal transfer of dividends and the failure to pay tax for so many years?

 

He said this suggested either a failure by the Nigerian authorities to do their job of monitoring such large financial movements, or a deliberate laxness. If the latter, why did they suddenly decide to enforce the regulations now? It also seems improbable, merely on face value, that after being hit with that huge fine two years ago, MTN would have flouted the regulations again so soon.

 

Pater noted that other mobile phone operators in Nigeria had not come under the same scrutiny as MTN, which was an ‘easy target’ because it was profitable and because its operations were transparent, unlike some other mobile phone operators in the country. Also, no doubt, because it’s foreign.

 

Vestact CEO Paul Theron told Bloomberg that Nigeria’s move was ‘pathetic, nationalistic and immature’ and could ‘severely weaken Nigeria’s economy in the years to come’. MTN has been among the most committed foreign investors in recent decades, the money manager said.

 

Nigeria’s move has also cast doubt on MTN’s plans to list on the Nigerian stock exchange which it promised to do after the fiasco two years ago. Pater told Biznews he thought it unlikely that MTN would want to list in Nigeria under the cloud of alleged flouting of regulations and with its share price at home so far down.

 

Alastair Jones, an analyst at the London-based New Street Research, told South Africa’s Business Times that if MTN failed to avoid the huge claims, the listing might never occur, as this would raise questions about MTN Nigeria as a going concern.

 

Pater told Biznews that perhaps the Nigerian government was trying to get its house in order, adding that ‘from history, MTN does not have a squeaky clean reputation, and there have been some transgressions in the past’.

 

But if indeed the Nigerian authorities were merely shaking down MTN to replenish the country’s foreign exchange coffers and plug the holes in the budget, as some were alleging, this could harm the country’s investment prospects in the long term.

 

MTN would probably not decide to exit Nigeria this time, as the country remained a big earner for it. It provides the largest number of subscribers – about 27% of the total in the 23 countries where it operates across Africa and the Middle East. Nigeria also earns MTN some 25% of its total revenue, second only to its earnings in South Africa.

And Pater pointed out that while the South African market was mature, Nigeria’s was still growing. Even so, if the company continued to be hit by such large penalties, it might eventually reconsider the viability of its Nigerian investment, he said.

 

It was likely that another large operator would then move in to take MTN’s place. Pater suggested though that Nigeria would be lucky to find another mobile phone operator with the same commitment to the country as MTN. And potential new investors with no existing commitments to Nigeria would be discouraged.

 

Atiku Abubakar, a former vice president who is running against Buhari for the main opposition People’s Democratic Party next year, told Bloomberg the way the central bank had targeted MTN would only serve to discourage foreign investors.

 

‘Even in a worst-case scenario where there were breaches of financial laws and regulations, there are much better ways to deal with it than by the public exposure that MTN has been subjected to,’ Abubakar said. ‘It is bound to send the wrong signal to foreign investors.’

 

The saga is already affecting investment prospects, it seems. Alan Pullinger, CEO of FirstRand, which is managing the Nigerian listing for MTN, told Business Times that MTN’s experience had made his group more cautious about doing an acquisition in Nigeria.

 

For some analysts and investors, MTN’s high-profile experience has only served to advertise the hazards of investment in Africa and reinforce an opinion – some would say a prejudice – that Africa as a whole is not a safe destination for one’s money.

 

David Shapiro, deputy chairman of Sasfin Wealth, told Business Day that the news reinforced his ‘sceptical’ stance towards investments in Africa. Despite the continent’s potential, ‘you have governments, and I must include SA, that are largely unpredictable’.

 

For the short-term gain of re-election next year, it seems, Nigeria is risking ‘killing the geese that lay the golden eggs’, as Pater warned.”

 

Peter Fabricius, ISS Consultant


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Oyedele Dismisses Claims Bank Accounts Without TIN Will Be Frozen

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Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has dismissed reports that bank accounts not linked to a Tax Identification Number (TIN) will be frozen or automatically debited from January 1, 2026.

Oyedele Dismisses Claims Bank Accounts Without TIN Will Be Frozen

Taiwo Oyedele

Oyedele described the claims as false and misleading, warning Nigerians against panic over misinformation surrounding recent tax and financial reforms.

In a post on his X handle Tuesday morning, he wrote: “Don’t let anyone manipulate you. Your bank account is safe. Misinformation makes you panic and fear a reform that is designed to help you.

“When they tell you that your account will be frozen or automatically debited from January 2026, ask them for the evidence in the new law. Be wise.”

He stressed that no provision in the new tax laws authorises the freezing of bank accounts, adding that the rumours are part of widespread misrepresentation of the reforms.

The committee chairman reiterated that the reforms are intended to simplify Nigeria’s tax system and ease the burden on ordinary citizens, not to impose punitive measures on bank customers.


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Amazon Blocks 1,800 North Koreans From Job Applications

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AMAZON
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US tech giant, Amazon has disclosed that it blocked more than 1,800 North Koreans from applying for jobs, amid growing concerns that Pyongyang is deploying large numbers of IT workers overseas to earn and launder funds.

Amazon Blocks 1,800 North Koreans From Job Applications

Amazon

In a LinkedIn post, Amazon’s Chief Security Officer, Stephen Schmidt, said North Korean nationals have been attempting to secure remote IT roles with companies around the world, particularly in the United States.

He noted that the company recorded nearly a one-third increase in such applications over the past year.

According to Schmidt, many of the applicants operate through so-called “laptop farms” — computers physically located in the US but remotely controlled from abroad.

He warned that the issue is not unique to Amazon and is likely occurring at scale across the tech industry.

He added that common red flags include incorrectly formatted phone numbers and questionable academic credentials.

The issue has previously drawn the attention of US authorities. In July, a woman in Arizona was sentenced to more than eight years in prison for running a laptop farm that helped North Korean IT workers obtain remote jobs at more than 300 US companies.

Officials said the scheme generated over $17 million in revenue for both the woman and North Korea.

Last year, South Korea’s intelligence agency also warned that North Korean operatives were using LinkedIn to pose as recruiters, approaching South Koreans working at defence companies in an attempt to steal sensitive technological information.

“North Korea is actively training cyber personnel and infiltrating key locations worldwide,” Hong Min, an analyst at the Korea Institute for National Unification, told AFP.

He added that, given Amazon’s business model, the motivation behind such operations is largely economic, with a high likelihood of attempts to steal financial assets.

North Korea’s cyber warfare programme dates back to at least the mid-1990s and has since expanded into a cyber unit of about 6,000 personnel known as Bureau 121, according to a 2020 US military report.

In November, Washington announced sanctions against eight individuals accused of being state-sponsored hackers, alleging their illicit activities were carried out to fund North Korea’s nuclear weapons programme.

The US Treasury has also accused North Korea-linked cybercriminals of stealing more than $3 billion over the past three years, primarily through cryptocurrency-related crimes.


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Treepz Launches Direct Flight Bookings to UK, Canada, UAE and 210 Global Destinations

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Treepz, Africa’s leading mobility and travel technology company, has officially launched direct flight bookings on its platform, enabling customers to search, compare and book flights to more than 210 destinations worldwide, including the United Kingdom, Canada and the United Arab Emirates.

The development marks a major milestone in Treepz’s transition from a mobility provider into a fully integrated travel platform. With the new service, travelers can now complete the entire booking process — from flight search to payment — directly on the Treepz website without relying on multiple agents or third-party platforms.

Speaking on the launch, Mr. Onyeka Akumah, Chief Executive Officer and Founder of Treepz, described the initiative as a defining moment for the company and for travel access across Africa.

He said launching flight bookings to serve customers with flights to over 200 destinations was a major achievement, noting that travelers could now search for flights, enter their details, make payments with their cards, and complete bookings instantly on the platform without delays or switching between multiple websites.

The launch comes at a critical time for the African travel market. December is widely regarded as the busiest travel season on the continent, driven by holiday vacations, family reunions, weddings, festivals and end-of-year celebrations.

Millions of Africans travel locally and internationally during this period, often facing challenges with slow booking systems, unclear pricing and fragmented services.

Treepz’s new flight booking system is designed to address these challenges by offering a faster, more intuitive and reliable experience.

Customers can now search and book flight tickets directly on the Treepz website, compare prices and travel options in real time, make payments using any card option, and complete bookings faster without switching platforms.

Treepz has outlined ambitious plans for 2026, including unlocking access to over six million hotels globally, which will allow travelers to book flights and accommodation together in one seamless flow.

The company also plans to expand its car rental services into Europe and South America, further strengthening its position as a one-stop travel ecosystem.

According to Akumah, these developments will significantly reduce planning time for both leisure and corporate travelers, while giving customers more control and convenience.

Treepz has already facilitated more than six million movements across multiple cities and countries, ranging from daily commutes and corporate transportation to group travel and event logistics. With active operations across Africa and recent expansion into Canada, the company continues to grow its international footprint.

The addition of flight bookings strengthens Treepz’s ability to serve global travelers while maintaining its reputation for reliability and customer-focused service.

By integrating flights, accommodation, ground transportation and experiences into one platform, Treepz is positioning itself as more than a mobility provider.

The company is evolving into a comprehensive travel solution designed for modern travelers who value speed, clarity and convenience.

Industry analysts say the move could redefine travel access across Africa, particularly during peak seasons when demand for efficient booking systems is highest.

With this launch, Treepz has taken a bold step toward building a unified, tech-driven travel ecosystem that connects Africa to the world.


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