MTN Nigeria drags Kogi govt to court

MTN Nigeria has instituted a legal action against the Kogi State
Government, claiming N5 million damages, an official said on
Tuesday.

The MTN’s Corporate Relations Executive, Mr Tobechukwu Okigbo,
made this known in Lagos on Tuesday.

According to him, the suit is as a result of the shutdown and
confiscation of telecommunications properties and equipment of the
firm by the Kogi State Board of Internal Revenue.

Okigbo said that the Attorney-General of Kogi State and the
Nigerian Communications Commission (NCC) were also named as parties
to the suit.

“The company contends in its summons that by virtue of the
provisions of Sections 4(2) and 5(1) and Item 46 Part 1 of the
Second Schedule to the Constitution of the Federal Republic of
Nigeria, 1999 (as amended) only the Federal Government and its
organs/agencies can either legislate or take any executive action
affecting the business interest of the telecommunications
company.

“In the suit, filed at the Federal High Court in Lokoja, the
Kogi State capital, the firm argued that its licence to operate in
the state was rightfully granted by the NCC.

“Despite the compliance by MTN with all requirements and
conditions for the grant of the licence by the
constitutionally-empowered organ, the NCC, the Plaintiff’s (MTN)
business premises and equipment were invaded by officers and men of
the Kogi State Internal Revenue Service, who shut down and
confiscated the business premises and equipment of the plaintiff on
Jan. 23.

“This act of the 1st, 2nd and 3rd defendants has greatly
affected the business and fortunes of the plaintiff, ’’ Okigbo said
in a statement.

He said that MTN argued that the Kogi State was not at liberty
to usurp powers belonging to the Federal Government with respect to
regulating telecommunications companies.

Okigbo said that the act of the 1st to 3rd defendants was
unconstitutional as it exceeded the competence of the defendants
and this unconstitutional exercise of powers must with due respect,
be stopped.

He said that MTN was asking the court for a declaration that the
acts of shutting down the base stations be deemed unconstitutional,
null and void and a declaration that the parties involved did not
have the power to perform such acts in the first place.

Okigbo said that among other reliefs, damages amounting to N5
million were being sought, including an order directing the
defendants to unseal and release to the MTN all its equipment and
property.

“The company has fulfilled all tax obligations.

“To the best of our knowledge, the Minister of Finance’s
recommendation as provided in the Act is yet to be issued, and as
such, it is unclear if the imposition of the fee by the Kogi State
Government is on a solid legal footing.

“As a responsible corporate citizen, we accord the highest
priority to our sub-national tax commitments.

“We wish to state that we have met in full all our tax
obligations to the Kogi State Government and are not in arrears,’
he said.

“MTN has provided Kogi State Internal Revenue Service (KGIRS)
with documentary evidence on multiple occasions to prove its tax
compliance.

“MTN remains committed to operating in the state and working
with relevant regulatory authorities in reaching a lasting
resolution, ‘’ Okigbo said.