Since Wednesday last week to date, residents and businesses relying on MTN network in Lokoja, the capital of Kogi State and adjoining towns including parts of Abuja had been experiencing difficulties in accessing telecommunications services following the decision of the Kogi State Internal Revenue Service (KGIRS) to shut the MTN base stations in Lokoja, Obajana and others.
Accordingly, those that cannot stay for long without telephone communication or internet services are now dumping the network in drones for other networks yet to be affected by the unilateral action of the state government.
Business Hilights Abuja Bureau chief who was in Lokoja weekend, reports that out of every 10 MTN subscribers, not less than six had since Thursday last week, removed their MTN SIM cards and hurriedly register and replace same with SIMs from yet to be touched networks to avoid being kept incommunicado.
Before now, there had been a lingering dispute between the revenue board and MTN over the latter’s alleged non-remittance of taxes to the state government when due.
In a brief explanation, director, legal services and enforcement of KGIRS, Director, Legal Services & Enforcement at KGIRS, Jamil Isah, who led other staff to seal the base stations of MTN, said that the action commenced on Wednesday afternoon.
In his submission, he averred that the action is due to the refusal of the telecom service provider to remit outstanding tax liability of N120 million to the state government.
While blaming MTN for remitting a paltry N250,000 out of the amount (total figure with held), Isah described the action as an abuse of the restraining order the state government earlier placed on KGIRS to allow for peaceful resolution of the dispute.
He stressed that “The state governor heeded the intervention of the Nigerian Communications Commission (NCC) when its officials came and ordered the opening of the sealed MTN base stations to allow for negotiations.”
“Since then, MTN did not take any steps to redeem its tax obligations in spite of court orders and has failed to make payment. MTN has engaged in various means to subvert the order of the court.
“Only on Tuesday, Jan. 22, the MTN offered a cheque of N250,000, which we out rightly rejected. This is a manifestation of the resolve of MTN to disregard the laws of Kogi State, and to use other government agencies to subvert court order.”
While warning that the KGIRS would not hesitate to shut all MTN base stations in the state if the service provider refused to resolve the tax dispute, Business Hilights recalls that earlier last month, the Association of Licenced Telecom Companies of Nigeria (ALTON) had raised alarm on the way and manner the Kogi State government is treating telecoms networks.
Chairman of ALTON, Engr. Gbenga Adebayo decried the rascality deployed by Kogi State government in frustrating the smooth running of networks and building avoidable costs on networks by shutting down Base transceiver Stations (BTSs).
He used the World Press Conference held in Lagos to call on the federal government intervene and declare all telecoms infrastructure national critical assets that should not be tampered with by any other body other than the operators to avoid collateral damages.
Other industry stakeholders’ who spoke to our Bureau chief chided the leadership of the NCC and the Minister of Communications, Adebayo Shittu for not intervening and speaking out to condemn the state government action.
Already, MTN Nigeria has expressed grave concern over the arbitrary shutdown of its base transmitting facilities by the Kogi State Internal Revenue Service (KGIRS), over allegations that it has not met its tax obligations to the government.
In a terse statement issued weekend, MTN’s Corporate Relations Executive, Mr. Tobechukwu Okigbo averred that “The Taxes and Levies Act which introduces the Social Service Contribution and Economic Development levies mandates the Joint Tax Board to recommend chargeable fees which will be subject to the Minister of Finance’s approval.
“To the best of our knowledge, the Minister of Finance’s recommendation as provided in the Act is yet to be issued, and as such, it is unclear if the imposition of the fee by the Kogi State Government is on solid legal footing.
“As a responsible corporate citizen, we accord the highest priority to our sub-national tax commitments.
“We wish to state that we have met in full all our tax obligations to the Kogi State government and are not in arrears,” he said.
Okigbo decried further that “On request, we have furnished the KGIRS on multiple occasions with documentary evidence proving our full compliance with extant state laws on the matter.
“At this stage, the demands of the KGIRS, if honoured, amounts to multiple taxation and the arbitrary shut down of our base transceiver stations and harassment of our partners will stand in the way of a reasonable resolution.”
Accordingly, MTN regrets the disruption of services to its customers in Kogi and some neighbouring states and remains fully committed to working with the Kogi state government and the relevant regulatory authorities in reaching a timely and lasting solution.
