Residents of Kogi State have continued to endure severe network outages for the past two weeks, following a deepening revenue dispute between the state government and telecommunication service providers over alleged tax evasion and revenue leakages.
The conflict, which has now escalated into a full-blown crisis, has grounded businesses across the state and paralysed socio-economic activities. Countless business owners have recorded losses running into millions of naira, while social life in major towns has been significantly disrupted.
The situation worsened on Tuesday, April 22, when the Kogi State Government shut down all MTN base stations across the state, along with several Glo network bases. The move, which was reportedly aimed at compelling compliance with state revenue demands, has left residents and business operators stranded.
According to Vanguard, currently, most banks and commercial establishments are unable to function properly due to the persistent disruption in telecom services. Residents have been left helpless, unable to make withdrawals or process payments through Point-of-Sale machines that depend on network connectivity.
PoS operators—who form a major part of small-scale employment in the state—have been forced to close shop, compounding the crisis. Businesses are now demanding cash payments for goods and services, further frustrating customers and causing widespread hardship.
Citizens are lamenting the excruciating pains resulting from the impasse between the Kogi State Government and the telecom companies. Despite the far-reaching impact of the crisis, neither the telecom operators nor the Kogi State Internal Revenue Service and the Kogi State Infrastructure and Utilities Management Agency have issued official statements.
“It is unfortunate that this problem lingers. The environment in the State is not encouraging for business even as it is expected that the service providers ought to pay their taxes, this must however be done with consideration,” said Usman Ahmed, a resident affected by the network outage.
For a PoS operator, Ojima Idakwo, the state needs to urgently define its tax policy to prevent further damage to businesses. “The time for the State to define taxes for service providers is now, because what we hear is that they (service providers) are made to pay multiple taxes, reason they are refusing to pay,” she said.
Another resident, Sunday Jacob, expressed fears over the broader implications of the conflict, describing it as a potential security threat. “The state government war with the service providers is a security threat to the state,” he warned.
As the standoff between the Kogi State Government and network service providers drags on, the Abuja Electricity Distribution Company appears to have compounded the woes of residents by drastically reducing power supply in the state. Many areas have been plunged into darkness for the past three days.
In addition to the lack of electricity, Lokoja, the state capital, has also been battling water scarcity following the collapse of the Greater Lokoja Water Works last year—a situation yet to be rectified.
Meanwhile, Governor Ahmed Usman Ododo has reportedly been out of the state for the past 10 days, with no official communication on his return date. The absence of Deputy Governor Oyibo Salifu has also been noted, as residents complain that his presence and leadership have not been felt during the crisis.
The only update from the state government came over the past weekend, when its media team released a photo showing Governor Ododo signing a contract in Hunan Province, China. Since then, there has been no further information, leaving the governor’s exact whereabouts shrouded in secrecy.
