Glo In Heavy Debt, FCDA Threatens To Shut Offices

September 10, 2021
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The Federal Capital Development Authority (FCDA) has threatened to close all Globacom Nigeria Limited offices in Abuja due to a telecommunications duct debt of over N1.3 billion.

As a result, the authority has given the telecom a seven-day deadline to comply with the payment or face having their business and switch premises shut down.

Addressing journalists during a visit to some of the telecommunication’s critical infrastructures in Abuja, the Chairman, Finance and General Purpose Committee of the 7th FCDA board, Hussein Monguno, said the move was part of the efforts to recover the over N7.8 billion debt owed by several telecommunication companies to FCDA.

He claimed that since the full deregulation of the telecommunication duct network began in 2004, Globacom has never paid the leasing agreement.

Although other telecommunications firms have responded positively, Monguno claims Globacom Nigeria Limited has failed to demonstrate any commitment.

“When we were sworn in to this board, the minister found it necessary to constitute a committee for debt recovery.

“There are about 7.8 billion naira or thereabout debt, being owed to FCDA by different telecommunication companies, we wrote them a letter. We invited them to come and either accept or disagree with the billing system because FCDA has a very good billing system.

“Some of them actually paid. As I speak now, MTN is actually on credit, and several others have paid, but the case of Glo is quite different. They have never responded and they are the highest debtors of N1.3 billion.

“FCDA has built this infrastructure to give them an enabling environment to operate. They have to reciprocate our effort by paying for the service. So, if they don’t pay the debt, we know what to do. They have signed an agreement, and the content of the agreement is very rich. We can do quite a lot, we can seal up this place and we can also disconnect them.

When asked on the negative impact the disconnection would cause its customers, the Chairman said “subscribers can choose to go to other network. Why will you have a network that will not be able to pay their debt?”

Also speaking, the Executive Secretary, Federal Capital Development Authority (FCDA), Zaliha’u Ahmed, said all efforts made to recover this debt have failed and every attempt to get M/s Globacom Nigeria Limited to reason with FCDA and make payments of their indebtedness has fallen on deaf ears.

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