The CEO of MTN Nigeria Ferdi Moolman has said the company did not intentionally flout Nigeria's laws regarding acquiring the relevant Certificates of Capital Importation (CCIs), adding that no dividends were declared or paid until the CCIs were issued and finalised.

Moolman recently responded to questions posed during a public hearing investigating the allegation that MTN Nigeria, together with four Nigerian banks, moved over US$13.97 billion to its parent company in South Africa between 20016 and 2016.

The senior executive acknowledged that funds were moved by MTN without complying with the 24-hour rule, but explained it was not practically possible to obtain the CCI at short notice, necessitated by prevailing situations in the country.

Moolman added that MTN Nigeria only requested for CCIs for Foreign Capital that was imported into Nigeria, and dividends were externalised on CCIs.

"Often for various reasons (such as not having all the required documentation for instance), it is not possible to issue a CCI within 24 hours, and the Central Bank of Nigeria's Forex Manual contemplates such situations by asking that the banks refer to the CBN for approval. Besides, the requirement to issue a CCI within 24 hours of conversion is an administrative requirement. As such, the CBN has the authority, and indeed we believe, approved the banks' applications to issue CCIs outside the recommended time frame," said Moolman.

The mobile operator stated in its quarterly update for the period ended 30 September 2016 that "MTN Nigeria, four commercial banks, certain MTN Nigeria directors and shareholders, the Central Bank of Nigeria and others appeared before the Senate on 20 October 2016 at the outset of this investigation."

MTN Nigeria and its bankers are cooperating with the investigation with a view to resolving the matter as expeditiously as possible. In the interim the CBN has instructed the banks to suspend any remittance of dividends until further notice, according to MTN Group Executive Chairman, Phuthuma Nhleko.

According to its quarterly update, MTN Nigeria reported a 1.2% decline in revenue Q3 2016 year-on-year with continued incremental improvements in revenue, with a 2.5% increase in its subscriber base to 60,5 million (quarter-on-quarter).

Moolman has also denied the allegations made against the company and has described them as "unfounded and without any merit."

On Monday 24 October Reuters reported that in a presentation to Nigeria's parliament, Citigroup has denied being involved in illegal foreign currency transfer on behalf of MTN.