The Osun State government and tech giant, MTN Nigeria are presently 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 is requesting that the tech company pay N945 million in RoW fees for 270 kilometers of fiber optic cable and an additional N100 million in penalties for allegedly failing to pay the fee.
MTN however stated that it had no such fees since 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 for the building and operation of fiber infrastructure spanning 1031.44 kilometers across four states (Osun, Oyo, Ondo, and Ekiti States).
It was gathered that the dispute 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.
Additionally, GTNL notified MTN that it had been assigned 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 within the state to ensure adherence to safety regulations and environmental laws, protecting the Osun State populace.
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.
The Odua Infraco’s 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, were 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.
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.
MTN received two letters from GTNL with Demand Notices, both dated March 25, 2024, requesting the firm to pay N945 million for its fiber cable plus N100 million as a penalty, amid efforts to address the issue.
It was reported that the issue is currently before the NCC’s Compliance Monitoring and Enforcement Department
while GTNL, the Osun State Government’s consultant, is demanding that MTN pay over N1 billion.
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 in 2018, Odua Infraco Resources Limited was granted a license by NCC under its InfraCo project, which aimed to expedite the deployment of fiber optic cables throughout the nation.
Four other companies were also granted licenses: Brinks Integrated Solutions Limited was granted a license 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.
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.
