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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.

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.”

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.

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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Mandatory Biometric Verification for Starlink Users in Nigeria Begins

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Users of satellite internet service provider Starlink in Nigeria are being required to complete a biometric Know Your Customer (KYC) process as a precondition to continue enjoying their services, according to .biometricupdate.

Mandatory Biometric Verification for Starlink Users in Nigeria Begins

According to local reports, more than 66,000 Starlink subscribers in the country had a December 31 ultimatum from the Nigerian Communications Commission (NCC) to complete the biometric verification or have their connection discontinued.

The process essentially entails linking a Starlkink account with the subscriber’s national digital ID.

The NCC, which is Nigeria’s telecoms industry regulator, is said to have first issued the directive in August last year, setting a three-month deadline which was to elapse on November 19, TechCabal reports.

The body however later extended it to December 31 after consultations with industry stakeholders. The internet account-NIN linkage, the NCC said, is to enhance identity verification and strengthen security within the country’s telecoms space.

Just a few days to the December 31 deadline, Starlink’s Nigeria office sent an email to its subscribers reminding them of the KYC requirement, and warned that all those who fail to comply would be disconnected.

And that once disconnected, reconnection would depend on network capacity in the concerned area.

The service provider said in its email that the process takes less than two minutes and users can complete it by logging in to their account via an app.

One user, quoted by TechCabal, said one needs to upload their selfie biometrics, provide their national identification number (NIN) and then give their consent for the account to be linked to their ID information.

Starlink’s internet service is present in about 155 countries with nine million users, as of 2025. Its growth in Nigeria is said to be rapid, making it the second largest internet service provider in the country, according to The Traffic.

Biometric identification for Starlink subscribers could become a continent-wide trend given that some countries have expressed reservations in opening up their internet space to the company over security concerns.

There’ve been fears that jihadists in countries like Mali and Nigeria may have exploited Starlink terminals to coordinate terror operations, and cybersecurity experts have also warned of risks related to weak regulation, digital sovereignty and data breaches.

The requirement for Starlink internet users to have their accounts linked with the NIN is similar to the SIM-NIN linkage policy which the Nigerian government battled to implement for many years, with many deadline extensions.

In October last year, the NCC, which is was at the forefront of the policy implementation, announced that all active SIM cards across all network providers had complied with the directive which was issued in 2020.

The idea, the federal government argued, was to strengthen security and curb criminality such as kidnappings which are aided and abetted by improperly identified mobile phone numbers.


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NITDA DG Charts Bold Path for Innovation-Led Digital Boom in North

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Mr. Kashifu Inuwa, Director General of the National Information Technology Development Agency (NITDA), has urged Northern Nigeria to pivot urgently from traditional commerce to an innovation-driven digital economy for sustainable growth.

NITDA DG Charts Bold Path for Innovation-Led Digital Boom in North

NITDA

Inuwa issued the call at the Future Map Foundation Roundtable 1.0 (North-West Edition) in Kano, attributing the region’s sluggish digital adoption not to talent deficits but to the lack of deliberate, coordinated strategies.​

He stressed deeper collaboration across academia, private sector players, entrepreneurs, and government, positioning the private sector as the primary innovation engine while government supplies robust policies and an enabling ecosystem.

Inuwa advocated for people-focused, locally tailored innovations that tackle regional challenges head-on, enabling global competitiveness by transitioning from mere technology users to creators of homegrown solutions.

The roundtable convened policymakers, tech founders, and ecosystem stakeholders to forge a comprehensive roadmap for North-West digital transformation, yielding firm commitments to bolster regional innovation policies and public-private synergies.

Inuwa’s push dovetails seamlessly with the Federal Government’s Renewed Hope Agenda, which sets an ambitious target of 95 per cent nationwide digital literacy by 2030, fostering inclusive economic empowerment.

Participants hailed the forum as a pivotal step toward unlocking Northern Nigeria’s tech potential, with NITDA poised to lead implementation through strategic interventions and partnerships.


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Samsung Plans to Double AI Mobile Devices to 800 million Units this Year

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Samsung Electronics plans to double this year the number of its mobile devices with “Galaxy AI” features largely powered by Google’s Gemini, its co-CEO said, which would give the U.S. firm an edge over rivals as the global race in artificial intelligence heats up.

The South Korean company, which had rolled out Gemini-backed AI features to about 400 million mobile products, including smartphones and tablets, by last year, plans to boost that figure to 800 million in 2026.

“We will apply AI to all products, all functions, and all services as quickly as possible,” T M Roh told Reuters in his first interview since becoming Samsung Electronics co-CEO in November.

The plan by the world’s largest backer of Google’s Android mobile platform is set to give a major boost to its developer Google, which is locked in a race with OpenAI and others to attract more consumer users to their AI model.

Samsung seeks to reclaim its lost crown from Apple in the smartphone market and fend off competition from Chinese rivals not only in mobile telephones, but televisions and home appliances, all overseen by Roh.

It will offer integrated AI services across consumer products to widen its lead over Apple in such features, though the latter was set to be the top smartphone maker last year, according to market researcher Counterpoint.

AI Race

Alphabet’s Google launched the latest version of Gemini in November, highlighting Gemini 3’s lead on several popular industry measures of AI model performance.

In response to Gemini 3, OpenAI CEO Sam Altman reportedly issued an internal “code red,” pausing non-core projects and redirecting teams to accelerate development. The ChatGPT maker launched its GPT-5.2 AI model a few weeks later.

Roh expects the adoption of AI to accelerate, as Samsung’s surveys on awareness of its Galaxy AI brand jumped to a level of 80% from about 30% in just one year.

“Even though the AI technology might seem a bit doubtful right now, within six months to a year, these technologies will become more widespread,” he said.


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