UPDATE 1-MTN says $10.1 bln Nigeria demand makes local listing challenging

LAGOS, Sept 12 (Reuters) - A $10.1 billion demand by Nigerian authorities from South African telecoms group MTN makes its planned debut stock market listing in the country "pretty challenging and awkward", the group's chief financial officer said on Wednesday.

Nigeria's central bank has asked MTN to repatriate $8.1 billion in monies sent abroad, claiming the funds were sent without proper certification. The company is also facing a $2 billion tax demand.

MTN has denied any wrongdoing.

Ralph Mupita said preparation of the company's initial public offering (IPO) prospectus is far advanced.

"We are not sitting here saying the listing is off. The listing is to remain on track," he told CNBC Africa television.

"It makes the IPO that we had planned pretty challenging and awkward but we have got to explore other options of continuing to meet the listing requirements," he said.

Mupita said MTN was committed to Nigeria and would stay in the country, adding that the company was looking forward to an amicable resolution to the matters. Nigeria is MTN's biggest market, accounting for a third of its annual core profit.

Some political analysts see politics as a factor in the pressure on MTN as Nigerian President Muhammadu Buhari, who took office in 2015 on promises to push through tougher regulation, is seeking re-election in 2019.