The federal government of Nigeria may soon be on warpath with some state governments over their refusal to abide by right of way (RoW) charge agreement that was reached by the National Economic Council (INEC). RoW is a right to make a way over a piece of land, usually to and from another piece of land.
RoW is required by operators laying optic fibers in various parts of the country. In a statement, the Nigerian government accused some states of increasing RoW charges in disregard of the resolutions reached by the National Economic Council (NEC).
“It may be recalled that in 2013, NEC set up a Committee comprising State Governors and Ministers to review the issues of multiple taxation in the telecommunications industry in Nigeria and its impact. The Committee, after extensive and wide-ranging consultations, resolved to harmonize the taxes applicable to broadband-related activities and streamline the taxation management processes across the Federation,” FG stated.
Specifically, the Committee agreed to the uniform Right of Way (RoW) charge of N145.00 per linear meter of fibre.
“It may also be recalled that in October 2019, we had written to all the State Governors, drawing their attention to these resolutions and soliciting their support and collaboration towards the realisation of the National Digital Economy by fast-tracking the deployment of broadband infrastructure for the provision of affordable internet services to underserved and unserved areas,” Nigerian government added.
According to the government, some States have decided to disregard these resolutions and have, in some cases, increased the RoW charges by over 1,200%.
“This will no doubt impact negatively on the efforts being made by the Federal Government,” FG stated.
It enjoined all state governors, especially those that have made public their decisions to increase the RoW charges, to reconsider these decisions in the interest of Nigerians as well as for the socio-economic growth and development of the country.
“We also draw their attention to the fact that these decisions, if implemented, will result in an increase in the costs of operations of the telecoms operators which will naturally be passed to the consumers,” the government warned.
