MTN Refutes Alleged N900 Million Tax Debt Owed to Nigerian State
- MTN has refuted allegations that it owes the Osun State government about N900 million in unpaid taxes
- The state government said the company failed to remit over N900 million for its fibre cables laid across the state
- MTN denied the allegations, saying that it partnered with Odua InfraCo for the project and has duly paid its Right of Way fees
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
MTN Nigeria has dismissed the Osun State government's claims that it owes the state more than N900 million in unpaid taxes related to deploying its fibre optic cables.
The state disclosed via its consultant, Global Transactions Nigeria Limited (GTNL), that it accused the telecoms firm of laying over 270km of fibre cables without remitting the required taxes. It also worried about the telecom giant’s disregard for local laws and regulations.
Source: Facebook
MTN replies Osun State
The Osun State Ministry of Innovation, Science and Technology petitioned the Nigerian Communication Commission (NCC), alleging that the telco withheld critical information from the state government when it partnered with Odua InfraCo for the fibre cable deployment.
According to reports, on June 30, 2024, MTN denied the allegations of tax evasion and withholding information from the state government and explained to the NCC that the deployment was based on a legal agreement with Odus InfraCo.
MTN stressed that it had complied with all necessary approvals and permits issued by the state government.
The company explained that it had a legal agreement with Odua InfraCo to roll out fibre cables in the state and that the state knew of the agreement.
MTN’s letter to the telecom regulator explained that it legally partnered with the infrastructure firm to lay the cables in their fibre ducts across the state during the period.
The company stated that the agreement was based on the documented right-of-way approval for the infrastructure firm by the Osun State Government of Innovation, Science, and Technology.
The development follows calls by telecommunication providers in Nigeria to allow for tariff increases to avoid the shutdown of the sector.
Subscribers kick against tariff hikes
In response, the Association of Telephones, Cable TV, and Internet Subscribers (ATCIS), telecom users have protested against telecom providers' demands to raise service fees.
Speaking at a press conference in Lagos over the weekend, the group urged the Nigerian Communications Commission (NCC) to reject telecom operators' demand for a tariff increase, arguing that doing so would further strain subscribers.
To help them cope with the high cost of providing telecom services throughout the nation, telecom operators, writing under the auspices of the Association of Licensed Telecoms Operators of Nigeria (ALTON), requested a 40% increase in the voice and data rate in a letter to the NCC.
ThisDay reported that members of ATCIS have urged the regulator not to consider the demand, claiming that it will hinder the expansion of the telecom industry, even if the NCC has not responded to it.
MTN CEO Karl Toriola sends message to FG on tariff hikes
Legit.ng previously reported that MTN's chief executive officer, Karl Toriola, has expressed deep concern over the crisis the Nigerian telecommunications industry is facing.
The MTN boss disclosed on Tuesday, August 13, 2024, at the telecom investment forum hosted by Financial Derivatives Company (FDC) in Lagos that despite the sector's growth in the past two decades, it now faces severe threats due to increasing costs and unsustainable pricing.
Toriola stated that a price hike is necessary to tackle the need to rescue the sector from imminent collapse, saying that it is in an intensive unit.
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Source: Legit.ng
