MTN rejects claims it transferred $14bn out of Nigeria illegally

South African telecoms giant MTN has strongly refuted allegations that it had illegally repatriated $13.92 billion from Nigeria, saying the claim was without merit.

Legislators in the Nigerian senate agreed on Tuesday to investigate the allegation that MTN, Africa’s biggest telecoms company, illegally transferred the money out of the West African country.

“The allegations made against MTN are completely unfounded and without any merit,” MTN Nigeria chief executive Ferdi Moolman said in a brief statement on Wednesday.

The allegation threatens to raise tensions between Nigeria and MTN just three months after the South African firm agreed to pay a reduced fine of 330 billion naira in a settlement with the government over unregistered SIM cards.

MTN is the largest mobile phone operator in Nigeria, which accounts for around one third of the company’s revenues. The company had threatened to pull out of Nigeria during the dispute over unregistered SIM cards.

MTN shares fell more than 3 percent on Tuesday.