Telecommunications front runners, MTN, is the second most valuable business group in Nigeria worth over ₦2trillion. The South African owned telecommunications group has been hit with an all time low in value of shares amidst tax dispute.
On Wednesday, the court case between Nigeria and MTN group was adjourned until October 29 and this has caused great uncertainties for potential investors and shareholders. Analysts have confirmed the drastic fall of share value, as it is reported that MTN Group shares have fallen by 2.4%, that is ₦128.75 each.
Nigeria's Attorney General, Abubzkzr Malami, hit MTN Nigeria with a $2BN [US Dollars] last year September. MTN Nigeria went on public listing on May 16, with a start off price at ₦99 but that figure increased to ₦159.30 days later. However, it has now dropped to ₦128.75.
Recall, on December 2018, MTN Group paid a sum of $53M [US dollars] to Central Bank over money transfer allegations. Therefore MTN had to go listing to recoup all their losses as well as engaging their Nigerian customers to be a part of the group.
Nigeria is MTN's biggest market, with over 58 million users as at a survey carried out in 2018 also generating a massive one-third of MTN Group profit worldwide.