MTN Nigeria has formally responded to the Nigerian Communications Commission (NCC) regarding the ongoing dispute with the Osun State Government over Right of Way (RoW) fees.
In a document seen by Okay.ng, MTN refutes the claims made by the Osun State Government, asserting that the demands for additional payments are baseless and contradict existing agreements.
The controversy centers on the Osun State Government’s request for the payment of ₦945,000,000 in RoW fees for 270 kilometers of fibre optic cables, along with a penalty of ₦100,000,000 for alleged non-payment.
These demands were conveyed in a letter dated April 19, 2024, from the Special Adviser on Legal Matters to the Governor.
However, MTN argues that it has already settled these fees through an agreement with Odua Infraco, the company responsible for managing fibre infrastructure in the state.
In its response to the NCC, MTN emphasized that its dealings with Odua Infraco were conducted under a binding contract, signed in May 2023, which grants Odua the right of way across 1,031.44 kilometers in Osun, Oyo, Ondo, and Ekiti States. MTN clarified that the existing agreement with Odua Infraco covers the RoW fees that the Osun State Government is now attempting to collect separately.
“We have fulfilled all our obligations under the Right of Way & Easement Agreement with Odua Infraco,” MTN stated in its response to the NCC.
“Any attempt by the Osun State Government to demand additional payments is not only unjustified but also undermines the integrity of our existing agreements.”
MTN further noted that the recent involvement of Global Transaction Nigeria Limited (GTNL) as a consultant on telecommunications infrastructure by the Osun State Government has complicated the situation. According to MTN, the state government’s relationship with Odua Infraco has become strained, leading to conflicting demands that are now being directed at the telecoms giant.
In addressing the issue of the penalty fees, MTN expressed its concerns about the broader implications of such demands on the telecommunications sector. “The imposition of exorbitant Right of Way fees and penalties could have a detrimental impact on the cost of telecom services, ultimately burdening our customers and stifling the growth of the digital economy in Osun State,” the company warned.
MTN also highlighted its efforts to resolve the dispute amicably, stating that it has engaged in discussions with key members of the Osun State Executive Council, including the Commissioners for Finance, Environment and Sanitation, and the Attorney General. Despite these efforts, MTN reported that no satisfactory resolution has been reached, prompting the company to suspend all payments to Odua Infraco until the matter is resolved.
“We remain committed to working with all relevant stakeholders to find a fair and equitable solution that respects the terms of our agreements and promotes the ease of doing business in Osun State,” MTN concluded in its response.
The document also reveals that MTN has sought the intervention of the NCC, urging the commission to mediate in the dispute and prevent any further disruption to its operations. The company stressed the importance of a stable and predictable regulatory environment, particularly as Nigerian state governments increasingly recognize the need for affordable RoW charges to foster digital development.
