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Tag: Kogi State

  • MTN to Restore Services in Kogi State as Parties Settle Dispute

    MTN to Restore Services in Kogi State as Parties Settle Dispute

    MTN Nigeria and the Kogi State Government have reached a resolution following a dispute over area coverage discrepancies and alleged tax evasion, involving the Kogi State Utility Infrastructure Management and Compliance Agency (KUIMCA) and the Kogi State Internal Revenue Service (KGIRS).

    The resolution was disclosed by Gbenga Adebayo, the Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), stating that the issues that led to the shutdown of MTN operations in the state have been resolved, with services expected to be restored by Wednesday.

    The dispute stemmed from a compliance issue between MTN Nigeria and KUIMCA, arising from MTN’s alleged failure to adhere to state regulations and underreporting the quantity of its optic fibre infrastructure in the state.

    According to KUIMCA, the telecom giant complained of being overbilled regarding the area it covers in the state, which led to a verification exercise that revealed MTN’s optic fibre presence was more extensive than declared.

    MTN Nigeria claimed to have 48 optic fibre lines in the state, while the verification exercise showed that the telecom’s optic fibre in the state exceeded that number.

    In addition, the KGIRS also accused the telecom giant of evading tax and submitting irrelevant documents during compliance checks.

    This dispute led to a court-ordered seal-off of MTN offices in the state, halting MTN’s communication services in Kogi.

    The shutdown left MTN subscribers scrambling for alternative networks, consequently affecting businesses and social activities.

    With the resolution of the issue, services are expected to be fully restored by Wednesday, allowing businesses and social life to return to normal.

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  • FG Pays $496m to Resolve Claims Regarding Ajaokuta Steel Mill

    FG Pays $496m to Resolve Claims Regarding Ajaokuta Steel Mill

    The Nigerian government has finally paid the sum of $496 million to settle a multi-billion dollar claim from Global Steel Holdings Limited to reclaim the Ajaokuta Steel Mill in Kogi State.

    Recall that Global Steel entered the Nigerian steel industry in 2004 following five major concessions and share purchase agreements by the Olusegun Obasanjo administration.

    However, when the late President Umaru Musa Yar’Adua’s new administration took office, things turned bad.

    Because the firm was engaged in asset stripping, the government canceled Global Steel’s 10-year concession of Ajaokuta steel in June 2008.

    Abubakar Malami, the Minister of Justice and Attorney General of the Federation, reportedly stated in September that they would settle the bill.

    He said instead of paying the original claim of $5.258 billion by GSHL over the termination of the concessions by the Olusegun Obasanjo administration, Nigeria was able to secure a 91 percent reduction and will now pay $496 million only.

    With this development, the Minister of justice said, President Muhammadu Buhari has now “rescued” the steel industry from interminable and complex disputes as well as saving the taxpayer from humongous damages.

    After a protracted disagreement, the Federal Government and Global Steel Holdings Limited renegotiated the concession agreement for the Nigerian Iron Ore Mining Company (NIOMCO), Itakpe.

    The agreement was reached after lengthy negotiations, and although there had been expectations that Nigeria would start making steel, those dreams were never realized.

    Since 2008, there have been protracted negotiations to find a peaceful solution to the Ajaokuta conflict, paralyzing the nation’s steel and industrial sectors.

    But the news medium quoted Malami, who it said led the negotiations, as having said that the government had managed to get a 91 percent cut on the original claims of $5.258 billion.

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