MTN - HEDA Resource Centre

CBN Loses Appeal as HEDA Secures Order on MTN Fine Settlement Details

The Court of Appeal sitting in Abuja has dismissed the appeal filed by the Central Bank of Nigeria (CBN) challenging a Federal High Court judgment that ordered it to release information requested by the Human and Environmental Development Agenda (HEDA Resource Centre) concerning its settlement with MTN Nigeria over allegations of improper repatriation of funds. In a unanimous decision delivered by Justices Osman Alhaji Musale, Boloukuromo M. Ugo, and Mohammed A. Danjuma, the appellate court upheld the earlier ruling of Justice J.K. Omotosho of the Federal High Court, Abuja, which on January 10, 2024, directed the CBN to provide details of the settlement with MTN. The court further awarded the sum of N500,000 as costs against the apex bank in favour of HEDA. The dispute traces back to 2021 when HEDA, invoking the Freedom of Information Act, demanded that the CBN disclose the details of its resolution with MTN Nigeria after the government accused the telecommunications company of illegally repatriating $8.1 billion in violation of foreign exchange regulations. While MTN eventually reached an out-of-court settlement with the Federal Government, the terms of the agreement were never made public, prompting HEDA to approach the courts to compel disclosure. The Federal High Court had ordered the apex bank to release comprehensive details of the transaction, including the initial fine imposed on MTN, the final amount paid, the basis for the initial sanction, any concessions that resulted in a reduction of the fine, and the procedure through which such concessions were granted. Dissatisfied with the judgment, the CBN filed an appeal, contending that the lower court lacked jurisdiction, that the case constituted an abuse of court process, and that its right to fair hearing was violated. The bank also raised issues regarding the interpretation of Section 30 of the Freedom of Information Act and Section 104 of the Evidence Act, 2011. The Court of Appeal rejected all these arguments, holding that under Section 1(2) of the FOI Act, an applicant does not need to demonstrate any specific legal interest before seeking information from a public institution. The justices ruled that once a request is denied, the burden rests on the public institution to justify its refusal. They further criticised the CBN for attempting to divert HEDA to other institutions such as the National Library and the Federal High Court, noting that Section 5(1) of the FOI Act requires a public body that does not hold the requested information but knows where it is located to transfer the request accordingly and notify the applicant, a duty the apex bank failed to discharge. In its judgment, the Court of Appeal declared that the CBN, being a public institution, was bound by law to provide the information requested by HEDA. It described the bank’s failure to comply with the FOI request as unlawful and a breach of the intent of the legislation. Consequently, the appellate court affirmed in its entirety the decision of the lower court and ordered the CBN to pay N500,000 in costs to HEDA. The ruling, according to HEDA’s Chairman, Olanrewaju Suraju, not only compels the Central Bank of Nigeria to release the long-sought details of its settlement with MTN Nigeria but also strengthens the enforcement of the Freedom of Information Act, reinforcing the principle that public institutions must uphold transparency and accountability in their dealings.

September 17, 2025September 17, 2025 By heda

Court Orders CBN To Grant HEDA’s Request For Details of MTN improper repatriation of funds.

In a landmark judgment delivered by Honorable Justice J.K Omotosho of the Federal High Court sitting in Abuja, the Central Bank of Nigeria (CBN) has been ordered to grant the Freedom of Information request by the Human and Environmental Development Agenda (HEDA Resource Centre) by providing details concerning the resolution between CBN and MTN Nigeria Limited on charges related to improper repatriation of funds. The Incorporated Trustees of HEDA Resource Centre had sued the respondent – Central Bank of Nigeria – in a suit marked FHC/ABJ/CS/1110/2021 over the Apex Bank’s failure to provide the information requested from it on the details of the improper repatriation of funds complaints against the telecommunication company back in 2021. HEDA in a Motion on Notice dated and filed 22nd February 2021 seeking an order of mandamus compelling the CBN to supply the information requested as contained in the applicant’s request dated the 20th of August, 2021. The applicant sought an Order of Mandamus, compelling the Central Bank of Nigeria to provide the detailed information requested under the Freedom of Information Act. The respondent, in turn, filed a motion to strike out and/or dismiss the suit on grounds of jurisdiction. In its quest for transparency and accountability, the Incorporated Trustees of HEDA sought comprehensive details regarding the resolution between the Central Bank of Nigeria and MTN Nigeria Limited. The information, requested under the Freedom of Information Act, aimed to shed light on the charges against MTN Nigeria Limited for improper repatriation of funds. The relief sought by the applicant through its lawyer, Saidu Muhammed was for the Central Bank of Nigeria to supply the requested information and comply with the application. The respondent, Central Bank of Nigeria, through its counsel, Lukman Fagbemi (SAN) argued that it had promptly responded to the request on August 25, 2021, assuring the applicant that the requested information would be communicated in due course. The delay, according to the respondent, was attributed to the necessity of consultations required to ensure compliance with the application. In a decisive ruling, the Honorable Justice J.K Omotosho ordered the Central Bank of Nigeria to provide the information outlined in the applicant’s request dated August 20, 2021. On January 10, Justice J.K Omotosho ordered, “That the Respondent supply the information requested, as contained in the Applicant’s Request dated the 20th of August, 2021 attached to the Affidavit in Support of this application as Exhibit HEDA I, to Wit: “The initial fine imposed on MTN Nigeria, The fine eventually paid by MTN Nigeria, The basis for the initial fine imposed on MTN Nigeria and any concession which led to a reduction of the fine; and The procedure through which the concessions were made. The Nigerian Government had accused the Mobile Telecommunication Company of illegally moving $8.1b out of Nigeria in contravention of foreign exchange regulations and demanded the return of the amount back to the coffers of the Central Bank of Nigeria. While the bank proceeded to court to challenge the government’s decision, its lawyers announced an out-of-court settlement between the company and the Federal Government, confirming a Lagos division of the Federal High Court entered the settlement terms as its judgment. Parties to the settlement had refused to disclose the terms of the settlement even in the court. The Nigerian Senate had alleged an attempt by officials in government, in cahoots with officials of the company, surreptitiously working to reduce the fine from $8.1b to a paltry $800m. The failure to disclose the terms of the settlement, despite allegations of conspiracy and compromise by the Senate, prompted HEDA to demand this information under the FOI Act. Sadly, further investigation revealed the terms of settlement were not in the case file, as claimed by parties to the agreement. This ruling reinforces the principles of transparency and accountability embedded in the Freedom of Information Act, marking a significant victory for HEDA Resource Centre in their pursuit of essential information related to the MTN Nigeria Limited case.

January 21, 2024 By heda