Court Fines CBN, Orders Release of MTN Settlement Details to HEDA

The Court of Appeal in Abuja has dismissed an appeal by the Central Bank of Nigeria (CBN) and affirmed a judgment compelling the apex bank to release details of its controversial settlement with MTN Nigeria over allegations of illegal funds repatriation.

In a unanimous ruling delivered by Justices Usman Alhaji Musale, Boloukuromo M. Ugo, and Mohammed A. Danjuma, the appellate court upheld the decision of Justice J.K. Omotosho of the Federal High Court, which had, on January 10, 2024, ordered the CBN to provide full disclosure of the settlement to the Human and Environmental Development Agenda (HEDA) Resource Centre.

The court further imposed a fine of N500,000 on the apex bank in favour of HEDA.

The dispute dates back to 2021 when HEDA, citing the Freedom of Information (FOI) Act, requested that the CBN disclose details of its resolution with MTN after the government accused the telecoms giant of illegally repatriating $8.1 billion in violation of foreign exchange rules.

Although MTN eventually reached an out-of-court settlement with the Federal Government, the terms of the agreement were never made public, prompting HEDA to initiate legal action.

The Federal High Court had directed the CBN to release comprehensive information on the case, including the initial fine imposed on MTN, the final amount paid, the rationale for the penalty, and the concessions that led to a reduction.

Dissatisfied, the CBN approached the Court of Appeal, arguing that the lower court lacked jurisdiction, that the case was an abuse of court process, and that its right to a fair hearing was breached. The apex bank also raised issues concerning the interpretation of Section 30 of the FOI Act and Section 104 of the Evidence Act, 2011.

However, the appellate court dismissed all the arguments, ruling that under Section 1(2) of the FOI Act, applicants do not need to demonstrate any special legal interest to access public information. It held that once a request is denied, the burden rests on the public institution to justify its refusal.

The justices faulted the CBN for failing to transfer HEDA’s request to the appropriate body as required under Section 5(1) of the FOI Act, describing the bank’s refusal as unlawful and contrary to the spirit of transparency.

Reacting to the judgment, HEDA’s Chairman, Olanrewaju Suraju, hailed the ruling as a victory for accountability. He noted that the verdict not only compels the CBN to disclose the long-sought settlement details but also reinforces the principle that public institutions must respect citizens’ right to information.

“This decision is a significant boost to the enforcement of the Freedom of Information Act. It sends a clear message that public agencies cannot arbitrarily deny access to information of public interest,” Suraju said.

The ruling is expected to compel the CBN to finally release details of its financial dealings with MTN, a development likely to stir public debate on transparency in Nigeria’s regulatory institutions.