The Nigerian Communications Commission (NCC) has made an appeal to states and local government councils across Nigeria to reduce the taxes imposed on telecom companies. The commission emphasizes that excessive taxation could hinder the growth of the industry.
In line with the Federal Government’s 2024-2026 Medium-Term Expenditure Framework and Fiscal Strategy Paper, a five percent excise duty on telecommunication services is set to be implemented to enhance revenue generation.
Aminu Wada Maida, the Executive Vice Chairman of the NCC, expressed concern over the high tax burden faced by telecom operators, which currently stands at 50 to 55 percent. He highlighted the difficulties in attracting foreign investments into the sector, contrary to President Bola Tinubu’s directive to the NCC. To address this issue, the NCC management has decided to embark on a nationwide advocacy campaign, urging states, local governments, and other stakeholders to reduce levies, particularly the Right of Way charges and multiple taxes.
During an interactive session with journalists at the Digital Economy Complex in Abuja, Maida stated, “We are going to be going on an advocacy campaign to see how we can convince the states to remove some of these obstacles like Right of Way and multiple taxations because I have seen some studies which indicate taxation is almost 50% getting to 55% in some areas in this country. And you would agree with me that if we are trying to bring in foreign investment that is not a good picture to paint.”
Maida appealed to states to consider the long-term benefits that would ensue from allowing significant investments in the sector, including job creation and the development of other value chains. He also assured that the NCC is committed to ensuring a level playing field for all stakeholders and that the ongoing dispute between MTN Nigeria and Globacom Network would be resolved amicably.
The NCC has developed a strategic vision based on five pillars to drive the telecom industry and ensure its consistent contribution to the country’s Gross Domestic Product (GDP). Acknowledging the challenges associated with the quality of services provided by Mobile Network Operators and Internet Service Providers, the commission intends to adopt a “total consumer experience” approach to address these concerns.
Maida advised consumers who complain about data depletion to consider factors such as the type of handset they use, available services, and the cost implications associated with digital services. He emphasized the importance of meeting consumer expectations in terms of service quality, stating, “Our approach will thus be to walk towards the expectations of these stakeholders, and everything for me starts with the consumer, and the expectation of the consumer is very simple – quality of service.”
The NCC aims to improve the overall consumer experience, including aspects such as network selection, SIM registration processes, linking SIM to NIN, transparent tariff structures, and customer support. The commission recognizes the significance of providing a seamless and satisfactory experience for telecom users.
