MTN faces ejection over inability to pay rent

The Mobile Telecommunications Nigeria Limited (MTN) is currently facing ejection in Ondo State over alleged rent default legal notice to vacate its leasehold on which its telecommunication equipment was built in Owo Local Government area, by a prominent family, in the state.

Ayanlaja, Adesanya & Co, acting on behalf of the Aderinola Family of Ipele,declared MTN as a trespasser who had been in “unlawful occupation” of a piece of land at Aderinola Camp, Ugbonla, Owo local government area of the state since April 1, 2021.

The tenancy agreement signed between MTN and the Aderinola family in 2021 stipulated that the renewal “shall be for an initial period of 10 years from 1st April, 2011 to 31st March, 2021 with an option to renew for another term of years to be agreed upon between both parties.

In a letter dated 8th July, 2021, Mr Bambo Adesanya, SAN, of Ayanlaja, Adesanya & Co accused MTN, whose Leasing Agency, Green & Brown Fields Nigeria Limited, mandated by His Nigeria Limited to negotiate the lease renewal, of “willful and deliberate refusal to pay the agreed rent while being in continuous occupation of our client’s land since April, 2021”.

Earlier on 2nd March, 2021, Mr. Abiodun Akinjayeju and Mr. Adekunle Araoye, both project coordinators for Green & Brown Fields Nigeria Limited had sent a Lease Renewal Form to Ayanlaja, Adesanya & Co, setting out the terms and conditions for renewing the lease of the piece of land on which MTN built its Base Transceiver Station (BTS), for 10 years from April 1, 2021.

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On March 13, 2021, Green & Brown Fields Nigeria Limited followed up with a letter proposing, among other things:

The payment of the3 same rent MTN paid in 2011, citing the “current economic realities in the country and in the telecom industry”.

On 17 March, 2021, Adesanya shot back, pointing that MTN’s site on the Aderinola property was “adjudged as having, among your other sites, the highest telecom signal transmission power to your coverage areas between Benin in Edo State and Akure in Ondo State” and that the situation had remained unchanged ever since.

Adesanya argued that the issue of withholding tax did not arise because one of the two members of the family holding the Power of Attorney on the property since 11th January 2005, is a retired bank employee while the other is not resident in Nigeria and could, therefore, not logically be taxable locally.

He pointed out in another letter dated 9th July, 2021, that Green & Brown Fields Nigeria Limited ‘did not deem fit to send the Draft Deed of Lease to us until 8th July, 2021” even though his chambers had requested for it as far back as 30th April, 2021.

Aderinola alleged that MTN and its agents had illegally deducted and pocketed the so-called 10% withholding tax on the rent paid on the family’s property since 2005 before Adesanya “blew up the racket with superior argument” during the 2021 Lease Renewal negotiation.