Kogi shuts 70 telecoms facilities over unpaid taxes
The Kogi State Internal Revenue Service has shut down telecommunications facilities in the state due to a tax default case with telecoms companies, Airtel, MTN, and Globacom. These facilities also provide services to about 10 neighbouring states. Ajibola Olude, the Executive Secretary of the Association of Telecommunications Companies of Nigeria, joins CNBC Africa to discuss the implications of this.
Thu, 31 Mar 2022 11:38:59 GMT
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AI Generated Summary
- Telecom facilities in Kogi State shutdown due to tax default with major companies
- Disruption in services affects communication, financial transactions, and economic activities
- Efforts to resolve the issue through dialogue to mitigate economic impact
The Kogi State Internal Revenue Service has taken a drastic step by shutting down telecommunication facilities in the state due to a tax default case with major telecom companies - Airtel, MTN, and Globacom. These facilities do not just cater to Kogi State but also provide services to approximately 10 neighboring states. The situation has raised concerns about the broader implications on telecommunications services, economic activities, and the livelihoods of residents in the region. Ajibola Olude, the Executive Secretary of the Association of Telecommunications Companies of Nigeria, sheds light on the series of events leading up to this decision. Olude expressed shock over the sudden shutdown, stating that the telecom companies had already paid their legal fees to the state and were taken by surprise when asked for additional payments. Instead of engaging in dialogue, the authorities resorted to locking up the facilities, causing a significant disruption in services. The lack of communication and cooperation from the government has hindered efforts to resolve the issue promptly. The closure of these telecom facilities has had far-reaching ramifications, affecting not just communication services but also impeding financial transactions, businesses, and essential functions in various sectors of the economy. Olude emphasized the urgency of addressing the situation to prevent further damage to the state's economy and the well-being of its residents. Despite the challenges posed by the shutdown, the telecom companies are proactively seeking dialogue with the authorities to find a resolution. The incident underscores the critical role of telecommunications infrastructure in driving economic activities and the need for transparent and constructive engagement between the public and private sectors to avoid such disruptions in the future.