Resolving The MTN, Abia State Govt. Impasse

*Gov. T. A. Orji of Abia State

By ROMMY IMAH

It is only a cynic that will fail to appreciate the gargantuan leap both private and public businesses in Nigeria have gained since the liberalization of the country’s telecommunications sector a decade ago, following the introduction of GSM services in the country. It is on record that the national economy has in particular enjoyed a Foreign Direct Investment, FDI of well over $15billion since the country embraced GSM telecom services in 2001.

It is over 10 years since the introduction of GSM telecommunications services in Nigeria. Within this period, the country has witnessed a massive revolution of sort in the kind of services being offered in the telecommunications sector. And the excitement that follows this has remained overwhelming.

This is a clear departure from what it used to be before the liberalization and the subsequent launch of this global system of telecommunications service in the country. Today, Nigerians can avail themselves of the opportunities offered by the various telecom operators doing business in the country. Beyond boosting all aspects of the national economy, the employment opportunities created by this revolution is overwhelming.

In Abia State (the place they call God’s Own State), I am afraid that this excitement

might be short-lived if a recent threat by one of the leading lights in this business is anything to go by. As an indigene and as a commentator on developments in the ICT world, I feel rather apprehensive and unease by the imminent implications of this threat to the overall economy of my beloved State and her inhabitants.

MTN Nigeria had a couple of weeks ago in a well publicized advertorial threatened to shut down its services in Abia State should the Abia State Infrastructure Development Fund (AIDF) refuses to retrace its step. MTN had accused the government agency of frustrating its efforts at having access to several of its sites in the state and as a result, cannot fuel or service the sites, a number of which are ‘hub’ sites providing service to other states in the Eastern and Southern part of the country.

The telecom operator alleged that the Abia State Infrastructure Development Fund seeks to compel it (MTN) to pay levies, the legality of which is currently under litigation in the law court. “In spite of ongoing court processes, the Agency has employed a variety of tactics over the course of this year with increasing disruptive action over the past few days, which if unremedied will result in the shutdown of network services in Abia State, Rivers State and environs,” MTN said in the statement.

This is not the first time and it may not be the last that the Abia State government and MTN Nigeria would be playing this no love lost game. About a year ago, the Abia State Government had sued MTN Nigeria for N350million being the amount it was supposed to pay as the state Infrastructural Development Fund (IDF) which is one of the state taxes the company defaulted in paying from 2001 to 2010.

The tax, which is captured in the state law of 2000 as amended in 2010 No 8 with the title Physical Planning and IDF, allows all telecom operators in the state to pay to the state coffers the sum of N200,000 per mast every month. MTN was said to have about 365 masts in the state as at the time the case was taken to court last year.

There is substantial evidence to support claims in some quarters that telecom services operators have had to contend with the excesses of some government agencies in the course of doing their business. And this has been a source of worry to the umbrella body of the operators, the Association of Licensed Telecommunications Operators of Nigeria (ALTON).

ALTON had sometime last year, lamented over what it called a very bizarre and frustrating development unfolding in the country’s telecommunications sector. Citing what it called high cost of doing business fuelled by unending multiple taxation, various levies and hostilities in parts of the country which have astronomically increased its members' overhead costs, the Association warned that telecom subscribers would end up being the losers.

The Association specifically pointed out that harassment, threats to lives of its members and workers as well as various levies, including but not limited to road, right of way, environment, site entry permit, private power generation permit and levies by local council and hoodlums (area boys), among others, have become very unbearable for operators.

The current imbroglio between MTN and the Abia State government is not peculiar to God’s Own State. This has been the situation in virtually all states of the federation however the difference is that maturity has prevailed in this other states in handling the matter.

It is good to hear the Abia State government react swiftly to the MTN advertorial by stating through the State Commissioner for Information and Strategy, Chief Don Ubani that the government was only pursuing a legitimate cause as it was acting on the orders of the court. According to the Commissioner, “Abia State physical Planning and Infrastructural Development law No 8 of 2010 stipulates what commercial organizations operating and generating revenue in the state should pay to the State Government. As a commercial enterprise profitably doing big business in Abia State, MTN has its own quota to pay to the State Government as stipulated by that law.

“After numerous attempts to collect the approved levies from MTN had been frustrated by the organization, the State Government, being a civilized government, had no other option than to proceed to the court as a lawful arbiter in this respect.

“A lawfully constituted revenue court, following a due process of law, fined the Management of MTN the sum of three hundred and fifty million naira (N350, 000,000) payable to Abia State Government on 15th June 2011, failure of which their properties in the state should be sealed.

“When MTN failed to pay the said sum and consequently her power station at Margaret Avenue in Aba was lawfully sealed, instead of paying the said sum or even politely approaching the relevant State Government agency for amicable settlement, she only resorted to brigandary by unilaterally and unlawfully unsealing her property at the said Margaret Avenue.

“Ever believing and relying on the rule of law, Abia State Government again proceeded to the court, which on Thursday 15th September 2010 condemned the exhibition of wildness, crudeness and incivility by the management of MTN and consequently passed a verdict of three months imprisonment on her for contempt of court.”

Good again to hear that the Abia State government is ever prepared to partner with any sincere organization or individual that is desirous to do legitimate business in the State that will equally impact positively on the socio-economic dynamics of her people. That is why it has to open up a dialogue process to resolve this matter with MTN amicably.

For MTN, if it had not appealed against the ruling of the court in Abia then it would tantamount to contempt to reopen a lawfully sealed business premises. There must be a way of resolving this impasse without necessarily obstructing free flow of business on the part of MTN and the government; business interests should prevail.

I honestly have this feeling that MTN is not going to take to the option of shutting down its services in Abia State and lose millions of naira that it rakes in on daily basis from its subscribers in that state and the neighbouring states. The operator still needs Abia State to continue to vigorously grow its business in the country.

For the state government, it must do everything to encourage investors to do business in the state by way of creating an enabling and business-friendly environment. There is still room for the immediate resolution of this ‘landlord/tenant’ imbroglio so as to nip this ominous signs in the bud.
This issue should not be allowed to deteriorate further.