MTN vs FG: Court strikes out AGF’s objection to damages suit

The federal high court in Abuja has struck out a suit by the office of the attorney-general of the federation (AGF) seeking to make null and void the damages demanded by MTN.

MTN had sued the government on grounds that the AGF lacked the power to deal with issues around tax and customs duties.

In September 2018, the AGF had demanded that MTN settle arrears of N242 billion and $1.3 billion import duties and withholding tax.

The AGF subsequently filed a preliminary objection in response to MTN’s suit. It said the plaintiff commenced the suit in clear disregard to section 2 of the Public Officers Protection Act.

The section states that “any action commenced against a public officer, must be made within three months from commencement of cause of action”.

Delivering judgment on the case, the court held that MTN’s suit was not statute-barred.

It said MTN filed its case within 3 months of receipt of the actual demand notice.

The AGF’s demand letter is dated August 20 while MTN filed its damage suit before November 20.

In a statement, MTN Nigeria said “It is important to note that even if the court ultimately rules that the AGF is within its rights to assess taxes and duties, it does not imply that the assessment that has been made is legitimate.

“MTN maintains that it is fully compliant with Nigerian tax laws. The company remains committed to meeting its fiscal responsibilities, and to contributing to the social and economic development of Nigeria.”