MTN Nigeria refutes allegations of over N900m tax debt to Osun

MTN Nigeria has rejected accusations from the Osun State government that it owes more than N900 million in unpaid taxes related to its fiber optic cable deployment.

The Osun State government, through its consultant Global Transactions Nigeria Limited (GTNL), accused MTN of laying over 270 kilometers of fiber cables without paying the required taxes. The consultant expressed concerns about MTN’s alleged disregard for local laws and regulations.

In response, the Osun State Ministry of Innovation, Science, and Technology filed a petition with the Nigerian Communications Commission (NCC), claiming that MTN had withheld critical information from the state government during its partnership with Odua InfraCo for fiber cable installation.

In a June 30, 2024, response to the NCC, MTN Nigeria denied the accusations of tax evasion and withholding information from the Osun State government. The company also provided detailed explanations to the queries raised by the regulatory body on May 17, 2024.

In a letter dated June 30, 2024, obtained by Sunday Sun, MTN clarified that its fiber cable deployment in Osun State was carried out under a legal agreement with Odua InfraCo, a company in which the Osun State government holds a significant stake. The telecom company emphasized that it had adhered to all necessary approvals and permits issued by the state government.

In the letter to the NCC, MTN stated that the Osun State government, through its consultant GTNL, had made unfounded claims of unpaid tax obligations, requesting that payments be made through the consultant. MTN explained that it had already paid its right-of-way (RoW) fees to Odua InfraCo based on a binding contract between Osun State and Odua. MTN argued that any attempt by the Osun State government to sever ties with Odua InfraCo should not affect the existing agreement with the RoW right holders, and that the state and Odua should resolve their differences in the interest of promoting ease of doing business.

MTN further explained that it had a legal agreement with Odua InfraCo to roll out fiber cables in the state, and the state was fully aware of this arrangement. However, it was later revealed that the state encountered issues with Odua InfraCo, a licensed company in the state, and subsequently directed MTN to discontinue its agreement with Odua InfraCo and work with the state’s consultant instead.

MTN’s letter to the NCC also noted that during the relevant period, the company had legally partnered with the Odua Investment Company, in which the Osun State government has a significant shareholding, to lay fiber cables in ducts within the state. This was based on existing right-of-way approvals for Odua’s ducts provided by the Osun State Ministry of Innovation, Science, and Technology.

MTN emphasized in the letter to the NCC that the real dispute lies between the Osun State government and Odua InfraCo over the right-of-way (RoW) fees for fiber infrastructure deployment.

While GTNL, the consultant to the Osun State Government, is demanding over N900 million in payments from MTN, the matter has been escalated to the Compliance Unit.

The letter also detailed the steps MTN has taken to resolve the issue, including engaging with and meeting members of the Executive Council of Osun State, such as the Commissioners for Finance & Environment & Sanitation and the Attorney General, to reach an amicable resolution. However, these efforts have not yet produced the desired outcome, and MTN has advised Odua to resolve its disagreement with the state government.

In addition, the letter noted that MTN has suspended all payments to Odua until the matter is resolved and has sought the intervention of the NCC following a complaint filed by GTNL.