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Osun government, MTN Nigeria lock horns over N1 billion Right of Way fee demand 

Karl Toriola, MTN Nigeria

MTN Nigeria CEO, karl Toriola

Tech giant, MTN Nigeria, is currently locked in a dispute with the Osun State government over an alleged outstanding Right of Way (RoW) fee and penalty worth over N1 billion.

According to documents sighted by Nairametrics, the Osun State Government is demanding the tech company pay a sum of N945 million as RoW fees for 270 kilometres of fibre optic and a penalty fee of N100 million for an alleged non-payment of the fee.

However, MTN said it owed no fee as it had signed a legal contractual agreement with Odua Infraco, which is partly owned by the Osun government and licensed by the Nigerian Communications Commission (NCC), and made all necessary payments to the company before laying its cables in the State.

The documents also revealed that Odua Infraco has the right of way for 1031.44 kilometres across four states (Osun, Oyo, Ondo and Ekiti States) for the construction and operation of fibre infrastructure, for which MTN signed a contract with the InfraCo.

Origin of the dispute 

Nairametrics learnt that the disagreement 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.

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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.

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.

Amid efforts to resolve the matter, MTN received two letters from GTNL with Demand Notices both dated 25th March 2024, requiring the company to pay N945 million for its fibre cable plus N100 million as a penalty.

Regulatory intervention 

While the consultant to the Osun State Government, GTNL, is insisting on the payment of over N1 billion by MTN, Nairametrics learnt that the matter is now before the Compliance Monitoring and Enforcement Department of the NCC.

The telecom regulator is currently seeking a way of resolving the issue which is about to cast a dent on its infrastructure project.

What you should know 

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