MTN denies owing Osun govt N900m via tax debt

MTN Group Limited

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.