Is Nigeria Government Targeting South Africa Companies Raise to Funds ?

Shares of MTN fell sharply today In Johannesburg after the $5.2 billion fine slammed on it by Nigeria.

Analysts, including us, believe this measure is a way to manage the country's $22 billion budget of 2015

MTN got into Nigeria's hot water the same day Stanbic IBTC, another South Africa outfit was asked to "make full" disclosures. 4 of its directors have been suspended.
Image result for mtn south africa
According to The Guardian Of London "there seems to a rivalry going on .South Africa companies in Nigeria do better than Nigeria companies in South Africa.
"
Nigeria is not helping its image. It is hunting Shell BP and now South African companies. People will simply take away their money.



According to reuters
The heavy fine has raised worries about doing business in Nigeria whose finances have been hit by falling crude oil prices.Investors have seen risks growing in the west African country as new leader Muhammadu Buhari shows little sign of following up on promises of economic reform."Nigeria stands to lose as much as MTN does if the fine stands as it is," said BPI Capital Africa's analyst Kate Turner-Smith. If MTN decided not to renew its licence or pull out of Nigeria, it would be "detrimental for Nigeria's communication infrastructure and image among foreign investors," she said.
Share on Google Plus

About ossy ilumah

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.