Business
MTN denies owing Osun govt N900m via tax debt
MTN denies owing Osun govt N900m via tax debt
MTN Nigeria has dismissed claims by Osun State government that it owes the state over N900 million in unpaid taxes, related to the deployment of its fibre optic cables.
The state, through its consultant, Global Transactions Nigeria Limited (GTNL), had accused MTN of laying over 270 kilometers of fibre cables without remitting the required statutory taxes. The consultant expressed concern over the company’s alleged disregard for local laws and regulations.
Consequently, the Osun State Ministry of Innovation, Science and Technology petitioned the Nigerian Communications Commission (NCC), alleging that MTN withheld crucial information from the state government when partnering with Odua InfraCo for fibre cable deployment.
In a June 30, 2024 response to the NCC, MTN Nigeria denied the allegations of tax evasion and withholding information from the Osun State government, and provided explanations to queries raised by the regulatory body on May 17, 2024.
In a letter dated June 30, 2024, seen by Sunday Sun, MTN clarified that its fibre cable deployment in the state was based on a legal agreement with Odua InfraCo, a company in which the Osun State government holds a significant stake. The telco emphasized that it had complied with all necessary approvals and permits issued by the state government.
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In the letter sent to NCC, MTN stated: “Osun State Government, through its consultant, GTNL, has been making unsubstantiated claims of outstanding tax obligations due, and requests that they be paid through the consultant. The fact is, MTN has settled its RoW fees to Odua Infraco based on binding RoW contract between Osun State and Odua. If there is an attempt by Osun State government to severe ties with Odua Infraco, this shouldn’t impact existing agreement with RoW right holders (Odua and Osun should resolve their differences in the overall interest of ease of doing business.”
MTN explained that it had a legal agreement with Odua InfraCo to roll out fibre cable in the state and that the state was aware of the agreement. It was however gathered that the state later had issues with Odua InfraCo, which is a licensed company in the state and the state then told MTN to discontinue its agreement with Odua InfraCo and work with the state consultant.
MTN letter to the NCC also explained that during the period referenced, MTN legally partnered with the Odua Investment Company – in which the Osun State government has a significant shareholding, to lay cable in their fibre ducts in the state. This was based on the documented existing right of way approvals for Odua’s ducts provided by the Osun State Ministry of Innovation, Science and Technology.
MTN further stressed in the letter to NCC that the actual dispute is between Osun State government and Odua Infraco over the right-of-way (RoW) fees for fibre infrastructure deployment.
While the consultant to the Osun State Government, GTNL, is insisting on the payment of over N900 million by MTN, the matter is now before the Compliance
The letter showed actions already taken by MTN to settle the matter include engagement and meeting with members of the Executive Council of Osun State (Commissioners for Finance & Environment & Sanitation and the Attorney General) to amicably resolve the issue. “However, all efforts have not yielded the desired result; advised Odua to settle its disagreement with the state government.”
Also, in the letter, MTN stated that it has suspended all payments to Odua until the matter is resolved and has sought the NCC’s intervention following a complaint filed with the NCC by the GTNL.
MTN denies owing Osun govt N900m via tax debt
Business
Naira exchanges N1,650/$ in parallel market
Naira exchanges N1,650/$ in parallel market
Yesterday, the Naira appreciated N1,650 per dollar in the parallel market, compared to N1,655 on Monday.
Similarly, the Naira appreciated to N1,535 per dollar in the official foreign exchange market.
Data published by the Central Bank of Nigeria, CBN, showed that the exchange rate for the Nigerian Foreign Exchange Market (NFEM) fell to N1,535 per dollar from N1,537 per dollar on Monday, indicating N2 appreciation for the naira.
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Consequently, the margin between the parallel market and NFEM rate narrowed to N115 per dollar from N118 per dollar on Monday.
Naira exchanges N1,650/$ in parallel market
Business
Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation
Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation
The exchange rate between the naira and the dollar ended the year at N1,535/$1 representing a 40.9% depreciation for 2024.
The official exchange rate between the naira and dollar closed in 2023 at N907.11/$1 thus depreciating by 40.9% for the year which compares to a 49.1% devaluation at the end of 2023.
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Nigeria introduced several foreign exchange policies in 2024 as the central bank expanded on market-friendly forex policies to attract foreign investors.
Meanwhile, on the parallel market where the exchange rate is sold unofficially, the naira exchanged for N1,660 to the dollar when compared to N1,215/$ according to Nairametrics tracking records. This represents a 26.8% depreciation.
Exchange rate ends 2024 at N1,535/$1, marking a 40.9% depreciation
Business
Warri refinery: Marketers hopeful of further petrol price drop
Warri refinery: Marketers hopeful of further petrol price drop
There was excitement on Monday as the Warri Refining and Petrochemical Company (WRPC) commenced partial production.
This is coming after nearly a decade of dormancy as the 125,000 barrels per day refinery was confirmed to be working at 60 per cent capacity, according to the Nigerian National Petroleum Company Limited (NNPCL).
The refinery, inactive since 2015 due to prolonged repairs, reportedly began refining activities last Saturday at its Area 1 plant, where crude oil was successfully pumped into the system.
This was coming about a month after the commencement of operations at the 60,000-barrel-per-day-old Port Harcourt Refinery.
The NNPCL Group Chief Executive Officer, Mele Kyari, announced the resumption of operation at the Warri Refinery during a tour of the facility on Monday.
Kyari was seen in a video posted by Channels TV addressing a tour team, which included the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed.
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Earlier, Kyari explained that the inspection aimed to show Nigerians the level of work completed so far.
He said though the repairs on the facility were not 100 per cent complete, operations had commenced.
He said, “We are taking you through our plant. This plant is running. Although it is not 100 per cent complete, we are still in the process. Many people think these things are not real. They think real things are not possible in this country. We want you to see that this is real.”
With the addition of Warri Refinery, Nigeria’s refining capacity has further increased with marketers anticipating a further reduction in price of premium motor spirit (PMS).
The 650,000-barrel Dangote Refinery has commenced production in addition to the Port Harcourt Refinery with a total capacity of 210,000 barrels per day (bpd) comprising 60,000 bpd for the old plant and 150,000 bpd for the new plant.
It’s good for business, prices may reduce – Marketers
Major Energy Marketers’ Association of Nigeria (MEMAN) and the Independent Marketers Association of Nigeria (IPMAN) welcomed the revival of the Warri refinery, saying it would deepen competition, diversify supply and ultimately resort to price reduction.
Executive Secretary of MEMAN, Clem Isong in a chat with our correspondent stated that the Warri Refinery is the shortest route to the North, describing its revival as good news.
“The market becomes more competitive and we are diversifying supply,” he said.
On whether it would lead to price reduction, he stated, “There are many factors that affect price, competition is always good and you can always get your product at the best price.”
National Public Relations Officer of IPMAN, Alhaji Olanrewaju Okanlawon in a chat with our correspondent said, “If there is excess supply, it will keep bringing down the price. We now run a free market and it is about demand and supply. It will continue bringing down the price. It will decongest Lagos.”
Energy expert, Dr. Ayodele Oni said the resumption of Warri Refinery would boost the local refining capacity in addition to enabling the country to sell to other neighbouring countries.
“We can refine more and even have some to sell. We now stop being hewers of wood and drawers of water. We add value to what we produce and can make/ do more with our base resources. This is very pleasant news,” he said.
Warri refinery: Marketers hopeful of further petrol price drop
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