News
Osun govt, MTN in dispute over N1bn Right of Way fee
Osun govt, MTN in dispute over N1bn Right of Way fee
Tech giant, MTN Nigeria, is currently locked in a dispute with the Osun State government over an alleged outstanding Right of Way (RoW) fee and penalty worth over N1 billion.
According to documents sighted by Nairametrics, the Osun State Government is demanding the tech company pay a sum of N945 million as RoW fees for 270 kilometres of fibre optic and a penalty fee of N100 million for an alleged non-payment of the fee.
However, MTN said it owed no fee as it had signed a legal contractual agreement with Odua Infraco, which is partly owned by the Osun government and licensed by the Nigerian Communications Commission (NCC), and made all necessary payments to the company before laying its cables in the State.
The documents also revealed that Odua Infraco has the right of way for 1031.44 kilometres across four states (Osun, Oyo, Ondo and Ekiti States) for the construction and operation of fibre infrastructure, for which MTN signed a contract with the InfraCo.
Origin of the dispute
Nairametrics learnt that the disagreement between the State and the tech company started with the former’s appointment of a consultant, Global Transaction Nigeria Limited (GTNL) to handle the collection of RoW charges even with the existence of Odua Infraco doing the same.
According to the documents, MTN’s business relationship with Osun State, through O’odua Infraco, was seamless until the company received a letter dated 14th September 2023 from GTNL introducing itself and informing the company of its appointment as Technical Consultant to the Osun State Ministry of Environment on telecommunications infrastructure within the state.
- GTNL also informed MTN that it had been tasked by the Osun State Government to coordinate telecommunications infrastructure pursuant to the Osun State Environmental Protection Law 2022, including the inspection, audit, and monitoring of installations within the state to ensure compliance with the environmental laws and safety standards to protect the people of Osun State.
READ ALSO:
- Police identify Lagos BRT bus attackers
- EFCC says its ‘X’ account undergoing upgrade
- Mother who had 3some with two 13-year-old schoolboys in her son’s bedroom jailed four years
- Subsequently, by a letter dated 15th December 2023, GTNL notified MTN of an ongoing investigation of Odua Infraco’s activities in Osun State, alleging that Odua Infraco did not have any legal right to lay fibre optic cables within Osun State and requested for a meeting with MTN.
- At the meeting, GTNL informed MTN that there was a plan to terminate Odua Infraco’s Right of Way and Easement Agreement with Osun State owing to O’odua Infraco’s alleged breach of its terms of appointment, non-remittance of fees to Osun State’s account, contravention of the Osun State Environmental Law, and illegal award of right-of-way to telecommunications operators including MTN.
However, Odua Infraco in a letter dated January 20th, 2024 sent to MTN countered GNTL’s allegations and insisted that its Right of Way and Easement Agreement with Osun State Government was still subsisting.
Amid efforts to resolve the matter, MTN received two letters from GTNL with Demand Notices both dated 25th March 2024, requiring the company to pay N945 million for its fibre cable plus N100 million as a penalty.
Regulatory intervention
While the consultant to the Osun State Government, GTNL, is insisting on the payment of over N1 billion by MTN, Newstrends learnt that the matter is now before the Compliance Monitoring and Enforcement Department of the NCC.
The telecom regulator is currently seeking a way of resolving the issue which is about to cast a dent on its infrastructure project.
- Recall that NCC in 2018 under its InfraCo project aimed at fast-tracking the deployment of fibre optic cables across the country, licensed Odua Infraco Resources Limited for South West alongside 4 other companies including Brinks Integrated Solutions Limited for North East Zone; Fleek Network Limited for North West; Raenna Nigeria Limited for South-South; and Zinox Technology Limited for Southeast.
- Before that, MainOne’s subsidiary, Infraco Nigeria Limited and IHS were the first two companies to be licensed in 2016 to cover Lagos and the North Central zone including the Federal Capital Territory (FCT).
- However, IHS later returned its licence, which was re-issued to Broadbased Communications Ltd. in 2021.
Osun govt, MTN in dispute over N1bn Right of Way fee
News
Rivers: Tinubu acted to save state, economy, says Karimi
Rivers: Tinubu acted to save state, economy, says Karimi
Chairman of the Senate Services Sunday Karimi has hailed President Bola Tinubu for the decision to declare a state of emergency in Rivers State.
He told reporters on Friday in Abuja that the President acted in the best interest of the State and Nigeria, having taken his decision in compliance with the Constitution.
“No President or government worth a name, will fold its arms and watch a political situation deteriorate to what we saw unfolding in Rivers State.
“We saw that bombing of pipelines had begun, and the security situation was getting worse with the tension everywhere”, Karimi stated.
Karimi, who represents Kogi-West on the ticket of the All Progressives Congress (APC), recalled the “fatherly role” Tinubu had played in the crisis since 2023 in a bid to get the Minister of the Federal Capital Territory (FCT), Nyesom Wike, and suspended Governor Siminalayi Fubara to reach an understanding, to no avail.
He explained: “We were all here in 2023 when Mr President called that truce meeting at the Aso Rock Villa. There was the eight-point agenda for settlement reached between the factions.
“When Nigerians expected that progress should be made to achieve peace, things started deteriorating considerably to a point where the governor demolished the House of Assembly building and administered the state with only three legislators.”
READ ALSO:
- Oluwo accuses Ooni of plotting to dethrone him
- Natasha: Court blocks recall attempt, stops INEC
- US ends legal status for 500,000 immigrants
Karimi observed that with the recent judgment of the Supreme Court, which gave the upper hand to the 27 lawmakers loyal to the camp of the FCT Minister, matters merely got worse in the State as the lawmakers were set to impeach the Governor.
“What did you expect would be the implications? There would have been more destruction, killings and economic losses for the country.
“With the bombings that had already started, it was a matter of time before the whole state would be engulfed in flames. No responsible President would sit, arms folded, and allow that to happen “ he added.
The senator further argued that it took “painstaking efforts” by the administration to raise daily crude oil production to around 1,800 barrels, noting that Nigeria’s economy was already “witnessing a rebound under the renewed hope projects of the government.”
“Allowing the situation in Rivers to get worse before he would act, wouldn’t have helped the state or Nigeria as a country in any way.
“Mr. President intervened at the right time, and his actions are covered by law,” he said.
Karimi also spoke on the emergency declaration in Borno, Yobe, Adamawa and a couple of other states by former President Goodluck Jonathan without removing the Governors from office or suspending the state assemblies.
According to him, the case with those States was not generated by political crises but rather security concerns.
“So, I will advise those comparing the two scenarios to remember that one was purely about security threats resulting from the insurgency caused by Boko Haram, while that of Rivers is clearly political.
“It was the proper thing to do to suspend the political actors in the two factions to allow for tensions to diffuse. Nigerians should appreciate the President for the action he has taken so far,” he stated.
Sen. Karimi also noted that there was no cause for alarm as the National Assembly had indicated that the emergency rule could be reviewed as soon as there were signs that things could quickly normalise in Rivers State.
Rivers: Tinubu acted to save state, economy, says Karimi
News
Just in: Tinubu swears in Rivers Sole Administrator Ibas
Just in: Tinubu swears in Rivers Sole Administrator Ibok-ete Ibas
President Bola Tinubu has sworn in Vice Vice Admiral Ibok-ete Ibas (Retd.) as the Sole Administrator of Rivers State.
The administrator was sworn in on Wednesday after a short meeting with the President.
Tinubu announced the appointment of the retired naval chief at a nationwide broadcast on Tuesday, when he declared a state of emergency in Rivers State and suspended Governor Siminalayi Fubara, Deputy Governor, Ngozi Odu, and the state House of Assembly members.
The President said his decision was based on Section 305 of the 1999 Constitution, saying he could not continue to watch the political situation in Rivers escalate without taking concrete action.
The suspension of Fubara and other elected representatives has been rejected and condemned by many eminent Nigerians, legal luminaries, groups such as Atiku Abubakar, Peter Obi, Femi Falana, the Labour Party (LP), the Peoples Democratic Party (PDP) and the Nigerian Bar Association.
However, the emergency rule has been praised by the pro-Nyesom Wike Assembly led by Martins Amaewhule, accusing Fubara of contravening the Supreme Court ruling on the political situation in the state.
Ibas was the Chief of Naval Staff from 2015 to 2021.
He is from Cross River State where he had his early education.
The new sole administrator went to the Nigerian Defence Academy in 1979 from where he proceeded to have a successful career in the Navy, rising through the ranks to the very top.
He is a member of the Nigerian Institute of International Affairs (NIIA) and the Nigerian Institute of Management.
President Muhammadu Buhari who appointed him as Chief of Naval Staff conferred him with the National Honour of Commander of the Federal Republic (CFR) in 2022.
News
Breaking: Tinubu declares state of emergency in Rivers State
Breaking: Tinubu declares state of emergency in Rivers State
President Bola Tinubu on Tuesday night declared a state of emergency in Rivers State following the protracted political crisis in the state.
Tinubu made the declaration during a nationwide broadcast, saying it is for six months.
He announced the suspension of the Executive Governor, Siminalayi Fubara, his deputy and all the members of the House of Assembly for six months.
He immediately named an administrator, Vice Admiral Ibok-Ete Ibas (Retd), to take charge of the affairs of the state for the six-month period.
Section 305 of the 1999 Constitution interprets a state of emergency as a situation of national danger or disaster in which a government suspends normal constitutional procedures to regain control.
A state of emergency allows the President to immediately make any desired regulations to secure public order and safety. (Channels TV)
-
International3 days agoUK announces new passport application fees starting April 2025
-
metro1 day ago‘We’re not hiring,’ NNPC denies viral recruitment adverts
-
metro2 days agoMore trouble brews in Rivers as Ijaw congress considers self-determination option
-
metro3 days agoCourt lifts order stopping Senate probe on Natasha Akpoti
-
Sports11 hours agoOdegbami speaks on Osimhen breaking his 44-year goals record
-
metro3 days agoMohbad’s brother, Adura, arrested by police in Lagos
-
metro3 days agoTanker explodes on Abuja bridge, many feared dead, 30 vehicles burnt
-
Politics3 days agoEmergency rule cannot stand in Rivers, says Amaechi, mobilises against Tinubu