Telcos Threaten to Shut Down Facilities in Kogi over Indiscriminate Taxes

Telcos Threaten to Shut Down Facilities in Kogi over Indiscriminate Taxes

Ugo Aliogo

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has expressed its concern about the shutting down of telecommunications facilities in Kogi State as a result of disputes arising from unusual taxes and levies demanded by the Kogi State Government through the Kogi State Internal Revenue Service (KIRS). 

The group in a statement issued  by the Chairman, Gbenga Adebayo, and  Head, Operations, Gbolahan Awonuga, stated that the issue is likely to lead to a total communications blackout in the state, parts of the Federal Capital Territory (FCT) Abuja and possible impact on service availability in some parts of the followings: Nasarawa, Benue, Enugu, Anambra, Edo, Ondo, Ekiti, Kwara, and Niger States, because those states are sharing borders with Kogi.

The state further explained that the situation arose because a number of critical telecommunications sites belonging to the members which have been closed and sealed up by the state government in an attempt to increase its Internally Generated Revenue (IGR) collection. 

The statement read in part: “This action followed an ex-parte court order obtained by the KIRS over unsubstantiated allegations that our members are in default of tax payments to the state government (which is not the truth) and access to these critical telecom sites has been denied.

“As result of these actions by the state government, our members are unable to refuel power generators in these sites, a situation which has led to outage of over 70 sites including hub sites across parts of Kogi State. Now, with likely impact on Nine States surrounding Kogi (namely: Nasarawa, Benue, Enugu, Anambra, Edo, Ondo, Ekiti, Kwara, Niger States. These are States sharing borders with Kogi State), and Abuja the FCT inclusive.”

The group hinted that they are very concerned that the indiscriminate action has the potential of further leading to a total telecommunications outage in the state with neighbouring states and parts of the FCT adversely impacted.

The statement revealed that the members have settled all statutory levies and taxes due to the state government and have taken necessary steps to comply with local laws that govern business activities within the state, noting that the charges described are annual Right of Way (ROW) renewal, social services contribution, employee economic development levy, and others. While others from the state environmental protection board are payment of environmental levy, failure to submit an environmental impact assessment report, and failure to register industry.

Continuing, the statement said: “ALTON is worried that the action by KIRS will jeopardize communication services provided by us to security agencies such as the Nigeria Police Force, the Armed Forces in addition and to other emergency and social services in Kogi and other neighboring states. This will include affecting communication links to Bank Automatic Teller Machines (ATM) across those States.

“The outage currently being experienced is already affecting the ability of our members to provide uninterrupted service delivery to Commercial Banks, Central Bank of Nigeria, the Nigerian National Petroleum Corporation and other critical agencies of government in the aforementioned locations.

“It is pertinent to note that the office of the National Security Adviser to Mr. President has in the past communicated to the 36 state governments on the fact that telecommunications sites are Critical National Infrastructure (CNI). They are critical socio-economic and security infrastructure. The agency had strongly advised against sealing them as such actions would have negative implications on national security.

“State Governments were encouraged to explore other means of resolving tax related disputes rather than sealing telecommunications sites. It is therefore worrisome that the KIRS continue to ignore such advice. Our members have also made several overtures to Kogi State Internal Revenue Service KIRS in the past months in a bid to resolve the disputed issues amicably but the agency has remained adamant. Rather than resort to the Tax Arbitration Tribunal for intervention as is expected of a government agency, KIRS has resorted to subtle intimidation by getting the sites shutdown in a bid to coerce our members into accepting the illegal taxes and levies.

“As an industry, this situation is very worrisome and of great concern and we hereby call on His Excellency, President Muhammadu Buhari, the Vice President, Prof, Yemi Osinbajo, who is driving the presidential enable business council on ease of doing business in Nigeria to prevail on the Kogi State Governor, Yahaya Bello (a Presidential Aspirant) to reign in on the matter to prevent a total blackout in communications services in Kogi, FCT and other Nine States of the Federation which are now under threat due to what is happening to our network in the state.” 

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