Osun govt, MTN bicker over alleged unpaid N1bn right-of-way
The Osun State government and tech giant MTN Nigeria are currently embroiled in a dispute over an alleged unpaid Right of Way (RoW) charge and penalty totaling more than N1 billion.According to the documents, the Osun State Government wants the tech company to pay N945 million in RoW fees for 270 kilometers of fiber optic cable, plus an additional N100 million in penalties for allegedly failing to pay the fee.
MTN, on the other hand, claimed that it had no such fees because it had a legitimate contract with Odua Infraco, a firm licensed by the Nigerian Communications Commission (NCC) and partially controlled by the state of Osun, and had paid the company all required amounts before laying its cables in the state, according to Nairametrics.
The documents also showed that Odua Infraco has the right of way to build and operate fiber infrastructure spanning 1031.44 kilometers across four states (Osun, Oyo, Ondo, and Ekiti).
The dispute between the State and the tech company began with the former appointing a consultant, Global Transaction Nigeria Limited (GTNL), to handle the collection of RoW charges, despite the fact that Odua Infraco was already doing so.
According to the documents, MTN's business relationship with Osun State, through O'odua Infraco, was seamless until the company received a letter from GTNL on September 14, 2023, 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.
Furthermore, GTNL informed MTN that it had been appointed by the Osun State Government to oversee the state's telecommunications infrastructure in accordance with the Osun State Environmental Protection Law 2022. This included inspecting, auditing, and monitoring installations throughout the state to ensure compliance with safety regulations and environmental laws, thereby protecting the Osun State population.
In a letter dated December 15, 2023, GTNL informed MTN of an ongoing investigation into Odua Infraco's activities in Osun State, alleging that Odua Infraco lacked any legal right to lay fibre optic cables in Osun State and requesting a meeting with MTN.
The reasons given by GTNL to MTN during the meeting regarding the plan to terminate Odua Infraco's Right of Way and Easement Agreement with Osun State included the alleged breach of its terms of appointment, non-remittance of fees to Osun State's account, violation of the Osun State Environmental Law, and illegal awarding of right-of-way to telecommunications operators, including MTN.
However, in a letter dated January 20th, 2024, sent to MTN, Odua Infraco denied GNTL's allegations and insisted that its Right of Way and Easement Agreement with the Osun State Government was still in effect.
MTN received two letters from GTNL with Demand Notices, both dated March 25, 2024, requesting that the firm pay N945 million for its fiber cable plus N100 million as a penalty, as part of efforts to resolve the issue.
The NCC's Compliance Monitoring and Enforcement Department is currently investigating the issue, while GTNL, the Osun State Government's consultant, is demanding MTN pay over N1 billion.
The telecom regulator is currently looking for a solution to the problem, which is threatening to derail its infrastructure project.
Recall that in 2018, NCC granted Odua Infraco Resources Limited a license for its InfraCo project, which aimed to accelerate the deployment of fiber optic cables across the country.
Four additional companies were granted licenses: Brinks Integrated Solutions Limited for the North East Zone, Fleek Network Limited for the North West, Raenna Nigeria Limited for the South-South, and Zinox Technology Limited for the Southeast.
Prior to 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, which included the Federal Capital Territory.
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