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Osun Govt’s Claims of N900m Unpaid Tax Against MTN Unsubstantiated

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Osun State Government, through its consultant, Global Transaction Nigeria Limited (GTNL), has been making unsubstantiated claims of outstanding tax obligations due, and requests that they be paid through the consultant.

Our Investigation has shown that MTN has settled its RoW fees to Odua Infraco based on binding RoW contract between Osun State and Oodua.

According to a document sighted by our reporter, the claim by osun state government is therefore baseless and unfounded since documents on ground has shown that the telco paid the state government through its consultant, in this case Odua Infraco.

If there is an attempt by Osun State government to severe ties with Odua Infraco, this shouldn’t impact existing agreement with RoW right holders (Odua and Osun should resolve their differences in the overall interest of ease of doing business).

During the period referenced, MTN legally partnered with the Odua Investment Company – in which the Osun State government has a significant shareholding, to lay cable in their fibre ducts in the state. This was based on the documented existing right of way approvals for Odua’s ducts provided by the Osun State Ministry of Innovation, Science and Technology.

The actual dispute is between Osun State government and Odua Infraco over the right-of-way (RoW) fees for fibre infrastructure deployment. 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 executed an IRU with Odua.

The relationship between Odua and the Osun State government is governed by a May 2023 Right of Way & Easement Agreement. MTN demanded an additional letter of no objection from Odua for the transaction. However, it appears the state government is no longer interested in the relationship with Odua following the state’s appointment of Global Transaction Nigeria Limited (GTNL) as a consultant on telecommunications infrastructure and the alleged termination of the agreement with Odua.

Ignoring the existing agreement with Odua, the state government, via a letter dated 19th April 2024 (from the Special Adviser on legal matters to the Governor) demanded for the payment of N945,000,000 as Right of Way (RoW) fees for 270KMs of fibre optic and a penalty fee of N100,000,000 for the alleged non-payment of RoW. Meanwhile, the RoW is already covered under MTN’s existing agreement with Odua.

Almost universally, Nigerian state governments have acknowledged the importance of affordable right of way charges to enable the growth and development of an inclusive digital economy.

Actions taken by MTN to settle the matter

Engaged and met with members of the Executive Council of Osun State (Commissioners for Finance & Environment & Sanitation and the Attorney General) to amicably resolve the issue. However, all efforts have not yielded the desired result.

Advised Odua to settle its disagreement with the state government.

MTN has suspended all payments to Odua until the matter is resolved.

Sought the NCC’s intervention following a complaint filed with the NCC by the GTNL.

Pertinent issues

Should consultants be mandated to collect tax revenue directly on behalf of government as opposed to receiving payments directly from government?

A modern and dynamic economy rides off low-cost telecoms infrastructure. State governments seeking to charge exhorbitant right of way fees simply put more pressure on customer pricing;

⁠Progressive state governments have waived RoW fees entirely in recognition of the economic and social benefits of affordable digital and data access.

Osun State government has provided documented right of way to MTN partners, but now wants to charge additional fees for the period in which that RoW approval was granted.

The Odua investment company, which was granted RoW by the Osun State Government and partnered with MTN, is partly owned by the Osun State Government and there is no need for this level of aggression.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

Telecom

MTN Nigeria to Issue N50Bn Commercial Paper

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MTN Nigeria has proposed issuing up to N50bn series 11 and 12 commercial paper notes to raise funding for its operations, according to the company’s notice to the Nigerian Exchange Limited.

MTN Nigeria to Issue N50Bn Commercial Paper

The notes issuance is under the company’s N250bn commercial paper issuance programme.

According to the statement signed by Uto Ukpanah, company secretary, the issuance is part of the company’s strategy to diversify its financing options with the funds being deployed towards short-term working capital requirements.

MTN Nigeria recently completed its series 10 commercial paper issuance under its upsized N250b commercial paper issuance programme.

Ukpanah, the telecom giant it sought to raise N72.1bn and the offer recorded 149 per cent subscription with N72.1bn issued.

The 266-day commercial paper was issued on 29 November 2023 at a yield of 16 per cent.

The CP issuance aligns with MTN Nigeria’s strategy of continuing to diversify its funding sources and reduce its average cost of debt. The proceeds will be applied to short-term working capital requirements.

Karl Toriola, chief executive officer, MTN Nigeria, said, “We are pleased with the support received from the investor community, having recorded a 149 per cent subscription from a broad range of investors. This reflects NTN Nigeria’s robust financial capacity, brand strength, and market leadership amidst the upward pressure on interest rates”

Stanbic IBTC Capital Limited played the role of Arranger and Dealer with ARM Securities Limited. Chapel Hill Denham Advisory Limited, Coronations Marchant Bank Limited, FCMB Capital Markets Limited, Quantum Zenith Capital &Investments Limited, Rand Marchant Bank Limited, and Vetiva Capital Management Limited played the role of Joint Dealers on the transaction.


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How AI Agents can Step in as Consumer Trust Slips

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Salesforce’s latest State of the AI Connected Customer research reveals consumer trust in companies is at a record low and that AI is raising the stakes for brands.

Today, 60% of consumers believe that advances in AI make trust even more important, and with AI agents on the rise, the findings point to real opportunities for companies to win back consumers with trustworthy AI agents this holiday season. This opportunity is greatest with Gen Zers, with almost a third of Gen Z consumers saying they’d be comfortable having an agent shop for them.

Faced with a challenging holiday shopping season and sinking consumer trust, brands can’t afford to get AI wrong—especially as more than $200 billion in global online sales will be influenced by AI this holiday season.

AI agents, or intelligent software that understands and responds to customer inquiries without human intervention, can help companies drive higher margins and keep consumers buying by delivering incredible customer service. From alleviating clunky purchase experiences to difficult return processes, there’s an agent for that. But to build trusted customer relationships, brands need trusted AI agents that are grounded in transparency and the right data.

Consumers trust less, expect more

Consumer trust is at its lowest point in eight years, and advances in AI make earning that trust more critical than ever.

  • Nearly three-quarters (72%) of consumers trust companies less than they did a year ago

  • 65% feel companies are reckless with customer data

It’s not just about trust; consumers also expect best-in-class experiences.

  • 69% of consumers expect consistent interactions across departments

  • Nearly 60% of consumers prefer using fewer touchpoints to get information or complete a task

While better deals are a top driver for consumers to switch to a new brand, customer service experience, convenience, and consistent product or service quality drive more long-term brand loyalty.

  • 43% of consumers say poor customer service experience will stop them from making a repeat purchase from a company or brand

  • More than a third of consumers say that inconvenience, such as a difficult return process or clunky purchase experience, will cause brands to lose them

Younger consumers are most open to AI agents

The research shows Gen Zers and millennials are more willing than older generations to use AI agents to improve their customer experience by creating more personalised, or useful content.

Younger generations, in particular, hold companies to a higher standard when it comes to adapting to and anticipating their needs—43% of Gen Zers and millennials say AI raises the bar for customer experiences compared to just 32% of baby boomers.

Gen Z and millennial consumers are more likely than older generations to consider the benefits provided by agents.

Transparency is key to building consumer confidence in the AI agent era

Despite the promise of young shoppers, many consumers haven’t made up their minds on AI yet. Nearly half of consumers are neutral about AI’s impact on their lives, whether personal or professional.

In fact, many consumers feel a mix of suspicion (44%) and curiosity (41%) about the future of AI —revealing a ripe opportunity for companies to help consumers see and understand the benefits of AI agents.

  • Over a third of consumers would work with an AI agent instead of a person to avoid repeating themselves

  • 30% of consumers—even more among Gen Z and millennials (37%)—would work with an AI agent instead of a person for faster service

  • A quarter of consumers — even more among Gen Z and millennials (roughly one-third)—would share their personal information with an AI agent so it can better anticipate their needs

To build confidence in the agent experience, businesses need to bridge the trust gap through more transparency.

  • Nearly 75% of consumers want to know if they’re communicating with an AI agent

  • 45% are more likely to use an AI agent if there’s a clear escalation path

  • 44% are more likely to use an AI agent if its logic is clearly explained

“Retailers face a much more competitive shopping season this year, as they look to deliver higher margins in the midst of increasing customer demands. AI agents can help brands deliver consistent, personalised experiences for shoppers across every channel – deepening customer loyalty and ultimately driving more sales,” says Linda Saunders, Salesforce Director Solutions Engineering Africa.


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MTN Nigeria Receives Award for Contributions to Media Development

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MTN Nigeria has received a “Media Capacity Development Support Award” for its immense contributions towards the growth and development of media practitioners across Nigeria.

The award was presented by the Media Career Development Network, at its inaugural conference held at the University of Lagos on October 31, 2024.

Held at the Biodun Shobanjo Auditorium Centre for Excellence, the Media Career Development Conference saw the coming together of seasoned media practitioners who shared insights on opportunities for growth and career advancement in the ever-evolving digital landscape.

Executive Director of the Media Career Development Network, Lekan Otufodunrin noted that the conference aligns with the organization’s commitment to promoting media excellence and advancing the careers of media professionals in Nigeria.

Speaking on the award, Chief Corporate Services & Sustainability Officer, MTN Nigeria, Tobe Okigbo appreciated the Media Career Development Network for the initiative, while also affirming MTN’s commitment to supporting the media.

“On behalf of MTN, I’d like to extend gratitude to the network for the recognition.

“At MTN, we believe in investing in institutions that bring value to the society and this includes the media.

“Journalists and other media professionals play a crucial role in telling authentic stories and shaping the image of our nation globally.

“So we’re committed to helping them gain the requisite skills and exposure needed to thrive in their profession”, he stated.

MTN Nigeria has consistently shown dedication to training world-class media professionals in Nigeria, particularly through its Media Innovation Programme (MIP).

Since 2022, the ICT firm has partnered with Pan-Atlantic University to enable media practitioners across various platforms gain insight into the rapidly evolving media environment.

Convener and Executive Director of the Media Career Development Network, Lekan Otufodunrin acknowledged the impact of the telecommunications giant’s efforts in upskilling Nigerian media professionals.

“The 6-month Media Innovation Programme created by MTN in partnership with Pan-Atlantic University has afforded media practitioners in-depth training on the media space and even the opportunity to gain more insights in South Africa.

“We hope that MTN Nigeria will continue to champion this programme for the development of professionals”, he said.

The Media Capacity Development Support Award joins a long list of awards MTN Nigeria has received for its contributions towards institutions beyond the telecommunications sector and the general society.


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