Telecom Blackout in Kogi: MTN Shutdown Sparks Network Crisis Amid State Tax Dispute

Telecom Blackout in Kogi: MTN Shutdown Sparks Network Crisis Amid State Tax Dispute

Telecommunication services across Kogi State have plunged into chaos following the complete shutdown of MTN Nigeria’s network, which stems from an unresolved dispute over levies and regulatory compliance between the telecom giant and the Kogi State government. The disruption, enforced by the Kogi State Utility Infrastructure Management and Compliance Agency (KUIMCA), has triggered a massive migration of users to alternative networks like Glo and Celltel, placing immense strain on these providers’ infrastructure and plunging the entire state into a digital crisis.

Government Seals MTN Facilities Over Non-Compliance

The shutdown began after KUIMCA, acting under the authority of a court order, sealed MTN’s operations in Lokoja. The agency accused the telecom company of violating several operational rules and neglecting to pay required levies tied to the state’s official regulatory framework. KUIMCA’s Director-General, Alhaji Taufiq Isa, stated that MTN had consistently failed to comply with the state’s operational guidelines as captured in the gazette, particularly in relation to fees owed for right-of-way usage of optic fibre lines.

Isa disclosed that upon assuming office in August 2024, he initiated a compliance review and discovered glaring discrepancies. While MTN claimed it had only 48 optic fibre installations in the state, KUIMCA’s audit revealed that the company had laid 199 optic fibre cables underground. Isa said efforts were made to reconcile these figures and reach a financial settlement, but MTN remained unresponsive and unwilling to engage meaningfully, forcing the government to take enforcement action.

We gave MTN ample opportunity to rectify the issue. We even carried out a joint verification exercise that confirmed their coverage exceeded their claims. Despite this, they refused to make the appropriate payments,” Isa said during a press briefing. “That’s why we proceeded to seal their facilities using a court order. We are simply enforcing our laws.”

Network Chaos Hits Residents and Businesses

Since the enforcement action, MTN’s network has been unavailable throughout Kogi State, affecting both voice and internet services. This development has left thousands of subscribers stranded, disrupting personal communications, banking services, and online businesses that depend on uninterrupted network connectivity.

Desperate subscribers have begun switching to other providers, particularly Glo and Celltel. However, this mass migration has overwhelmed the alternative networks, which lack the infrastructure capacity to absorb the sudden spike in users. This has caused severe network slowdowns, dropped calls, and poor data performance.

Abdulkadir Sani, a resident of Lokoja and former MTN user, expressed frustration over the situation. “I first tried Celltel, but the service was poor. I then moved to Glo, which was okay at first, but then it also became unreliable,” he said. “Everyone is trying to find a better option, but the truth is, none of these networks can handle the load right now. We’re in a digital blackout.”

Legal Threats and Growing Public Pressure

The telecom crisis has stirred public outrage and prompted community leaders to demand immediate action. Chairman of the Kogi Elders Forum, Julius Elukpo, issued a 24-hour ultimatum to MTN, threatening to sue the company for damages if services are not restored promptly.

Elukpo faulted the company for its lack of compliance, accusing it of disrespecting both the law and the rights of its subscribers. “MTN must pay its dues to the government and restore network services. Otherwise, we will pursue legal action,” he declared. He also called on other affected citizens to consider class-action lawsuits to demand compensation for the disruption.

Meanwhile, state authorities remain firm on their stance. Isa urged residents to be patient with the government, assuring them that the shutdown was necessary to uphold accountability. He emphasized that security agencies and essential services should consider switching to alternative providers in the interim, noting that “no single operator should be indispensable.”

KGIRS Joins Call for Accountability

Backing KUIMCA’s enforcement action, the Kogi State Internal Revenue Service (KGIRS) stressed that MTN had repeatedly ignored calls to regularize its operations. Speaking during a joint press briefing, the Executive Chairman of KGIRS, Salihu Enehe, revealed that MTN had dodged several invitations for reconciliation meetings and had grossly underreported its infrastructure footprint in the state.

Represented by Director Hassana Salawu, Enehe stated, “MTN was asked to appear for reconciliation multiple times. They continued to act like they were not ready to cooperate. They also grossly misrepresented the extent of their network in the state. That alone constitutes a serious regulatory breach.”

He further explained that the regulatory levies are not arbitrary but based on documented operational guidelines and gazetted laws that apply to all companies operating within the state. “What MTN has done is an act of corporate disregard for state laws. We will not unseal their offices until they meet all conditions of compliance,” he said.

Implications for MTN and Telecom Industry

MTN’s service disruption in Kogi comes at a time when Nigeria’s telecom industry is under increased scrutiny regarding taxation, infrastructure investment, and service quality. The company’s standoff with Kogi State could set a precedent that prompts other states to assert similar regulatory authority, especially concerning taxes and right-of-way fees.

For MTN, which is Nigeria’s largest telecom operator, the loss of service in an entire state undermines its reputation for reliability and could trigger a wave of subscriber churn if the issue is not resolved swiftly. Moreover, prolonged service outages might expose the company to legal liabilities and regulatory sanctions beyond the Kogi jurisdiction.

Industry experts warn that such conflicts can erode investor confidence in Nigeria’s digital economy if not handled constructively. “What we’re seeing in Kogi State is a regulatory standoff that could have far-reaching consequences. While the state has a right to enforce its laws, prolonged shutdowns hurt not just the operator but the economy as a whole,” said telecom analyst Bamidele Omotayo.

The Way Forward

At the heart of this crisis is the need for dialogue and transparent reconciliation. Stakeholders argue that while compliance with state regulations is non-negotiable, enforcement actions should be carefully balanced to avoid large-scale disruptions to essential services.

Many observers are now calling on federal regulators such as the Nigerian Communications Commission (NCC) to intervene, facilitate mediation between MTN and the state government, and prevent similar shutdowns in the future.

Until then, Kogi residents continue to grapple with unreliable telecom services and uncertainty over when MTN’s network will be restored. As both parties dig in, it remains to be seen whether compromise or escalation will define the next chapter of this unfolding dispute.

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