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Nigeria’s Aggressive Taxes is Cause of Bad Network – Report

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Nigeria’s multiple and aggressive implementation of taxation on telecommunications companies is the cause of bad network quality, according to nairametrics.com

Nigeria's Aggressive Taxes is Cause of Bad Network – Report

This was disclosed in a report released by SB Morgen titled “Inside Nigeria’s Subnational Fiscal Crisis”.

The report stated that the telecommunications industry appears to suffer disproportionately from this over taxation in Nigeria.

The report also revealed that there are over 40 different taxes and levies meted out upon the Mobile Network Operators (MNOs) carrying out telecom services in Nigeria.

However, the aggressive taxation of this sector has led to the degradation of network quality causing Nigerians to suffer the consequences.

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What the report is saying

The report stated that the poor network quality is an evident result of telecoms corporations’ numerous taxation.

It said, ”A clear impact of multiple taxations of telecommunications companies is the degradation of network quality. This mostly occurs when state authorities, in a bid to enforce compliance in payment of taxes, lock up the facilities of telecom operators and deny them access to their sites for refuelling, maintenance or fault resolution.”

The report stated that the regulator’s forceful lockout of telcos would result in catastrophic network disruptions, affecting a large number of Nigerians.

The report said, “The lockouts are quite often targeted at large sites, which effectively paralyses a good section of the network, causing complete network outage for the affected communities over an area that could stretch across as many as two or more adjoining states.”

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According to the report, the effects of such network failures are not limited to the impacted telecommunications network but may spread to others as affected clients transfer to other network providers when they are unable to enjoy service from their current network providers.

The report said, “telecommunications operators in Kogi State warned that the shutting down of their sites by the Kogi State government in a bid to force operators to pay more taxes and levies could lead to a communications blackout in as many as 11 states.”

The report added that “State governments often lock telcos out of their facilities in a bid to collect various taxes. Oftentimes this leads to a degradation of network quality”

What you should know

The Nigerian National Broadband Plan 2020-2025 estimates that 4G coverage is at 37% and has a target of achieving coverage of at least 90% of the population and a penetration rate of 70% by the end of the plan’s lifetime and delivering data download speeds of about 25Mbps in urban areas and 10Mbps in rural areas.

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It also forecasts that for every 10% increase in broadband penetration, the country’s Gross Domestic Product (GDP) rises by 2.6-3.8%, making this an economically significant initiative.

According to Nigeria’s GDP data, the telecommunications sector had a nominal GDP of N14.1 trillion as of December 2021 compared to N5.3 trillion for the entire financial services sector.10 years ago (2021), Telecommunication Sector has a nominal GDP of N5.3 trillion while banks had a GDP nominal size of N1.49 trillion.

Telcos have a customer base and demand that will drive increased revenues and profitability in the coming years, with over 199 million active mobile users. Telcos also have the capability and capital to diversify into other areas of the economy, beginning with banking. MTN’s latest MOMO license provides the company with a new source of revenue.

Nairametrics reported that Nigeria’s telecommunications behemoth, MTN Nigeria, is now worth N5 trillion, making it more valuable than all banks, insurance companies, and financial services firms listed on the Nigerian Stock Exchange combined.

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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.

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NCC, Enugu Sign Deal to Operate Digital Industrial Park, Learning Centre

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Nigerian Communications Commission (NCC) and the Enugu State Government have signed an agreement for the operational lease of the NCC Digital Industrial Park and NCC Learning Centre in Enugu.

NCC, Enugu Sign Deal to Operate Digital Industrial Park, Learning Centre

The agreement was witnessed by Dr Aminu Maida, Executive Vice Chairman and Chief Executive Officer of the NCC, alongside members of the Commission’s Board and Management.

The development is expected to strengthen digital innovation, skills development and technology-driven opportunities in the state.

As part of the engagement, the NCC delegation also visited the Enugu Smart School Initiative, where technology is being integrated into teaching and learning.

The initiative is aimed at equipping young Nigerians with relevant digital skills and preparing them for future opportunities in an increasingly technology-driven economy.

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The NCC said it remained committed to supporting initiatives that expand digital inclusion, strengthen innovation and develop the talent required to drive Nigeria’s digital transformation.

The Commission said partnerships with state governments and other stakeholders were critical to creating an enabling environment for digital skills development and technology adoption across the country.

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NCC Asks Telcos to Make Budgetary Provisions for Cybersecurity

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Nigerian Communications Commission (NCC) has directed telecommunications operators to make dedicated budgetary provisions for cybersecurity as part of efforts to strengthen the resilience of Nigeria’s communications infrastructure against the growing wave of cyber threats.

NCC Asks Telcos to Make Budgetary Provisions for Cybersecurity

 

The directive forms part of the Commission’s Cyber Resilience Framework for the Nigerian Communications Sector (CRF-NCS), which introduces new governance, risk management and operational requirements aimed at safeguarding the country’s critical telecommunications infrastructure from increasingly sophisticated cyberattacks.

Under the framework, all licensed telecom operators are expected to establish formal cybersecurity governance structures, dedicate adequate financial resources to cyber resilience programmes, and integrate cybersecurity into their enterprise-wide risk management processes.

The Commission said operators must ensure cybersecurity investments are no longer treated as optional operational expenses but as strategic business priorities necessary to protect network infrastructure, customer information and the country’s digital economy.

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According to the NCC, licensees are expected to allocate sufficient budgets to support cyber risk assessments, security technologies, staff training, incident response capabilities, continuous monitoring and compliance with regulatory requirements.

The framework also requires operators to designate senior executives responsible for cybersecurity oversight.

At the same time, boards of directors are expected to provide strategic direction and ensure adequate funding for cyber resilience initiatives.

Speaking on the need for a stronger cybersecurity regime during the unveiling of the framework, Abraham Oshadami, executive commissioner, Technical Services, NCC,  said, “Given the increasing digitalisation of services, the rapid growth of data exchange, and the sophisticated nature of modern cyber threats, the need for a robust, adaptive and inclusive cybersecurity framework has become more urgent.”

He added, “Both state and non-state actors are targeting essential sectors—including ours—through coordinated cyber and physical attacks. These attacks frequently target control systems and data integrity, underscoring the critical risks posed to operational technology (OT), especially in our sector.”

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“As cyber threats evolve, they endanger not only system performance but also human safety, amplifying the severity and consequences of disruptions to vital communications infrastructure. Cybersecurity now encompasses human safety and must address the real risk to people’s lives when a system is attacked or compromised.”

The Commission further stated that operators are required to develop comprehensive cybersecurity implementation plans, conduct periodic risk assessments, establish business continuity and disaster recovery procedures, and regularly test their cyber defence capabilities.

In addition, the framework makes cyber incident reporting compulsory. Licensees must inform the NCC’s CSIRT of any major cybersecurity breach within four hours of discovery, and provide a thorough post-incident analysis after mitigation is complete.

 

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Glo Leads Internet Growth Figures in Nigeria for May

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Digital solution provider, Globacom has recorded the highest Internet subscriber growth among Nigeria’s major telecom companies for the month of May.

Data from the Nigerian Communications Commission, NCC, Nigeria’s total Internet users increased to 157 million in May, up from 154.3 million in April. That is a growth of 2.67 million users in one month.

Globacom led the market by adding about 1.2 million new Internet subscribers. This means Glo was responsible for almost half of all new Internet users in May.

The company’s subscriber base grew from 15.5 million in April to 16.8 million in May. Airtel came second with 1.07 million new users, moving from 54.8 million to 55.8 million. MTN added 382,894 users to reach 83.5 million.

T2 Mobile, formerly 9mobile, recorded no growth for the second month in a row. Its subscriber base remained at 802,534. This is despite its roaming agreement with MTN, which was approved almost a year ago to help T2 customers use MTN’s network in areas with poor coverage.

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Industry experts say Glo’s strong growth is due to its ongoing network upgrade. Since last year, the company has been building new base stations, expanding its fibre network, and adding thousands of new 4G sites across cities and rural areas.

The upgrades have improved voice and data quality for customers, while Globacom remain committed to providing better network experience and affordable Internet services to more Nigerians.

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