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Help! Big Telcos Killing Small Firms with ‘Unscrupulous’ Practices

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Small businesses operating in Nigeria face increasingly difficult odds of survival in their operations no thanks to man made obstacles.

Small businesses are crippled by  lack of funding, corrupt courts and greedy officials.

Routinely, businesses face corrupt officials who have the power to deny licenses, permits, office spaces and access to supplies unless substantial “gifts” or bribes are offered.

In the telecom industry, the picture is grimmer as big operators encouraged by lax regulation milk small firms dry.

The bigger firms abuse market power they have amassed and emasculate smaller operators,

When the small firms complain, they are harassed and blackmailed with the same corrupt administrative and legal system.

It is so sad that small operators subsidise the big boys so they can live the expensive lifestyle they are used to.

In other countries where telecommunications has had deep roots, the dominant operator is the one who subsidise the small operators.

The operators hide under the absence of anti-trust law and lack of machinery to regulate monopolistic and anticompetitive practices by powerful companies.

The telecom industry is currently subsisting under the anti-trust provision enshrined in the NCC’s Act.

That provision has been found to be defective because it does not protect other sectors of the economy. Experts said that the way forward is the institution of anti-trust law.

Anti-trust law seeks to make businesses compete fairly. Premised on the belief that free trade benefits the economy, businesses, and consumers alike, the law forbids several types of restraint of trade and monopolization.

The absence of anti-trust law has negative and far reaching effects on the economy.

Already smaller operators are being pushed out of the market by large operators with huge financial war chest.

Nigeria CommunicationsWeek gathered that there are occasions where entrenched operators deliberately limit the size of interconnection between it and other operators in order to attract even more customers to their own networks.

There are also cases where large operators have arm-twisted smaller players and taken their ideas and business proposals.


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Telecom

SHELT SI Achieves Cisco Select Partner Certification

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SHELT System Integration (SHELT SI) has announced its achievement of Cisco Select Partner certification in Nigeria, marking a significant milestone in its commitment to delivering top-tier networking and security solutions to businesses across the region.

This certification underscores SHELT SI’s dedication to excellence in providing innovative networking and security solutions tailored to meet the evolving needs of the market.

The Cisco Select Partner certification is a validation of SHELT SI’s technical expertise and commitment to customer satisfaction, as well as its ability to deliver cutting-edge networking and security solutions that drive business success. With this recognition, SHELT SI is affirming its ability to further enhance its offerings and support its clients in navigating the complexities of the digital landscape.

Cisco Nigeria General Manager Sebastine Nzeadibe comments: “We are delighted to welcome SHELT SI to the ranks of Cisco Select Partners in Nigeria.

“Their demonstrated commitment to excellence and customer satisfaction aligns perfectly with our values, and we look forward to collaborating closely together to empower businesses with transformative networking and security solutions.”

Youssef Abillama, CEO of SHELT, comments: “Achieving this certification strengthens our relationship with CISCO and is a testament to our team’s dedication and expertise in delivering best-in-class solutions.

“This milestone reinforces our commitment to empowering businesses in Nigeria with innovative technology solutions that will enable them to thrive in the digital age through cutting-edge technology solutions.”

SHELT’s Country General Manager, Walid Bou Abssi, added, “The Cisco Select certification empowers us to provide an increased level of support and further enhances our ability to address the requirements of our clients’ evolving needs in Nigeria.

“It is an acknowledgement of the ability of our pre-sales, sales, and client support teams to design, quote, deploy, and support Cisco solutions.”

 

 

 


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Nigeria May Re-introduce Telecom Tax to Obtain new $750m World Bank Loan

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Nigeria may reinstate a previously suspended telecom tax and other fiscal measures as it seeks to secure a new $750 million loan from the World Bank, as per Nairametrics report.

Nigeria May Re-introduce Telecom Tax to Obtain new $750m World Bank Loan

This is according to the Stakeholder Engagement Plan for Nigeria – Accelerating Resource Mobilisation Reforms (ARMOR) P-For-R (P177308) program dated March 2024, between Nigeria and the World Bank.

A copy of the plan’s document was obtained and seen by Nairametrics suggest the government reintroduces the excises on telecom services, EMT levy on electronic money transfers through the Nigerian Banking System among other taxes.

President Bola Tinubu in July 2023 ordered the suspension of the 5% excise duty on telecommunications and the Import Tax Adjustment levy on certain vehicles.

However, it appears that this suspension may be lifted to meet the program targets for a new, yet-to-be-approved World Bank loan.

Nairametrics has confirmed that negotiations are ongoing between the Federal Government and the World Bank.

The program’s development objective is to strengthen the government’s financial position by enhancing its capacity to manage and mobilize domestic resources effectively, which includes improving tax and customs compliance and protecting oil revenues.

Affected stakeholders and sectors

The planned tax reforms under the ARMOR program are expected to have significant implications across various economic sectors.

According to the plan, affected stakeholders will include manufacturers of goods such as alcoholic beverages, tobacco products, and sugar-sweetened beverages (SSBs), telecom and banking service providers, as well as the general tax-paying public.

Importers and international traders will also feel the impact of these new fiscal policies.

Key industry groups such as the Association of Licensed Telecom Operators of Nigeria (ALTON) are engaged regarding the excise duties on telecom services.

The banking sector, represented by the Committee of Bankers, are engaged regarding the introduction of an Electronic Money Transfer (EMT) levy on transactions processed through Nigerian banks.

Additionally, the Manufacturers Association of Nigeria (MAN) will play a crucial role, particularly for those involved in producing targeted products such as tobacco and alcoholic beverages.

The plan document read:

“Domestic Revenue Mobilisation drive in the government ARMOR program seeks to increase revenue on some targeted industries and sectors of the economy. Specific groups and agencies within affected sectors include

“1. Association of Licensed Telecom Operators of Nigeria: The introduction of excises on telecom services requires that all telcos are mobilised to fully participate in the collection of such revenue.

“2. Committee of Bankers: Introduction of EMT levy on electronic money transfers through the Nigerian Banking System would need the buy-in all banking institutions

“3. Manufacturer’s Association of Nigeria: Manufacturers of tobacco products, sugar sweetened beverages(SSBs) and alcoholic beverages who would be required to collect excises on their products are critical stakeholders for the introduction of the new excise regime. They are currently organised into various sectoral groups under the Manufacturer’s Association of Nigeria (MAN). Producers of alcoholic beverages organised under the Distillers and Blenders Association of Nigeria also need to key into the reforms

“4. Importers: Strategic partners involved in importation of different items into the country will be mobilised to participate in the ARMOR program. A key stakeholder group is the Association of Nigeria Customs Agents (ANCLA).

“5. Vehicle Importers and Manufacturers: Stakeholders in the automobile trade industry must be engaged on reforms involving the introduction of green taxes on high GHG emission vehicles. Local manufacturing and assembly of vehicles is growing through a phase of growth in Nigeria. The demand for vehicles is mostly met through importation by vehicle importers under the aegis of Association of Motor Dealers of Nigeria (AMDON).”

The document also emphasized the importance of engaging vulnerable groups to ensure they are not disproportionately affected by these changes.

It also said:

“Services that will be subjected to the newly introduced excises are regulated by key public sector agencies. The introduction of the new revenue measures will require the application of existing regulatory mechanisms available within these institutions. The concerned institutions include

“1. Nigerian Communication Commission

“2. Central Bank of Nigeria.

“There are also agencies with the mandate for making policies on some of the issues covered in the ARMOR program with respect to policy framework on matters of public interest in Health and Environmental Protection. The government institutions relevant to ARMOR in this regard are.

“1. Federal Ministry of Environment

“2. National Environmental Standards Regulatory and Enforcement Agency (NESREA)

“3. Federal Ministry of Health”


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Google and African Union Partner to Launch #DiscoverMyAfrica

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The Office of the African Union Chairperson’s Youth Envoy and Google today announced the launch of the #DiscoverMyAfrica Shorts Challenge, a month-long initiative to celebrate the rich diversity, heritage, and vibrant spirit of the African continent. Throughout May, YouTube creators across Africa are invited to share short videos capturing their unique perspectives, using the hashtag #DiscoverMyAfrica.

“#DiscoverMyAfrica empowers African youth to share their stories and rich cultural heritage globally,” said Chido Mpemba, African Union Chairperson’s Youth Envoy. “Partnering with Google fosters creative expression and dialogue on content responsibility, digital preservation, and AI’s impact on Africa’s creative industries. This aligns with our vision for a digitally-enabled Africa harnessing cultural wealth for economic growth and social progress.”

The YouTube Shorts Challenge encourages creators to showcase various facets of African life, from music and art to food, fashion, and local landmarks. To further celebrate Africa’s vibrant music scene, YouTube is turning up the energy with YouTube Music Nights in Nigeria and South Africa, showcasing the infectious rhythms of Afrobeats and Amapiano. Two dedicated playlists, “Africa’s Next Wave” and “Africa Superstars,” will highlight both emerging talent and iconic voices that have made the continent a global music powerhouse.

Nollywood superstar and style icon Osas Ighodaro will immerse viewers in the luxurious side of Lagos with her new show “Spa with Osas.” Enioluwa and The Geng will unravel the drama and secrets of high school elites in their highly anticipated series “All of Us.” And comedy superstar Broda Shaggi is guaranteed to bring the laughs with his hilarious new project, “Shaggi’s Palava.” These exciting new shows will premiere exclusively on YouTube.

Aspiring filmmakers and content creators can also take advantage of specialized workshops designed to hone their skills and expand their reach. A dedicated Nollywood workshop in Nigeria, and broader #DiscoverMyAfrica workshops for content creators will offer valuable insights and resources to creators at all levels.

“We are committed to supporting the diverse voices and talents that make up Africa’s creative landscape,” said Addy Awofisayo, Head of Music for Sub-Saharan Africa at YouTube.

“These initiatives provide valuable resources and platforms for African filmmakers, musicians, and content creators to share their stories and connect with global audiences.”

To learn more about #DiscoverMyAfrica and how to get involved, visit www.blog.google/africa or follow #DiscoverMyAfrica on social media.


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