MTN Nigeria Shares Hit 5-Week Low As $2Bln Tax Case Adjourned

Shares in MTN Nigeria dropped to its lowest level since the telecom company listed five weeks ago; this after a court case over its $2 billion tax dispute with the government was adjourned to October.

Analysts said the court adjournment created uncertainty for investors as the tax dispute would continue to linger.

Shares in MTN, the local unit of South African telecoms group MTN Group, dropped 2.4% to 128.75 naira, their lowest level since May 21. They were still above their initial public offer price of 99 naira when the company listed on May 16.

Nigeria’s attorney general hit MTN Nigeria with a $2 billion tax bill last September, the latest clash between the MTN group and authorities in Nigeria, the group’s most lucrative market.