National Inland Waterways Demands N1Bn from Telcos

National Inland Waterway Authority, a federal government agency in-charge of water transport is demanding N1billion from telecommunications operators as ‘right of way’ for their fibre optic cable that pass through government bridges.

The authority was established by National Inland Waterways Act No 13 of 1997 Laws of the Federation of Nigeria, and saddle with responsibility, among other things, to improve and develop inland waterways for navigation.

The agency is also to ensure the development of infrastructural facilities for a national inland water­ways network connecting the creeks and the rivers with the economic centres using the river-ports as nodal points for intermodel exchange and the development of indigenous technical and managerial skill to meet the challenges of modern inland waterways transportation.

Shola Adeyemi, Director, Legal & Regulatory Affairs/ Company Secretary, Airtel Nigeria, said that the sum is demanded as right of way fees for fibre optic cables laid within the Federal Government’s Right of Way in Northern States in spite of the fact that similar fees had already been paid to Federal Ministry of Works.

He said that the demand of National Inland Waterways amounts to double taxation and multiple regulations which stakeholders are seeking for government intervention.

Adeyemi who was reacting to multiple taxation in the industry listed some of the its effect as including possible diversion of Foreign Direct Investments to other jurisdictions considered more investor-friendly.

“Industry may not be able to adequately support Law Enforcement Agencies to investigate crimes at affected locations. Probable barrier to broadband roll out with attendant adverse impact on internet penetration and services and unconventional tactics employed by the MDAs for the collection of the levies which result in damage and injury to operators’ staff and property.”

It would be recalled that telecommunications operators have decried situations where they are forced to pay taxes and levies that are not in the statutory responsibility of operators.

Engr. Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (ALTON) said that the demand is one of the problems operators are facing in the hands of government agencies, arguing that if the cable pass under water they have right to their demand, but for the bridges which they did not construct, National Inland Waterways have no right to demand for ‘right of way’.

He said the problem of multiple taxation and regulation that operators are facing demand president’s intervention to save telecommunications infrastructure which should be regarded as a social infrastructure.

Reacting to the development, Tony Ojobo, director, Public Affairs, NCC, said the Commission under the new management decided to reach out to other agencies and the state governors with the view to convince them to take another look at the industry and create environments that will favour operators and thus be able to contribute more in terms of investment, employment and taxes.

“This course of action, which we will want to describe as quiet diplomacy, is helping to bring some needed stability to the sector. We have met with their Excellencies under the Governors Forum. We have told them about the existence of a document put together by the National Economic Council which spells out charges on telco infrastructure roll out,” he said. “