Telecom
Subscribers, Telcos Kick as FG Slams 5 Percent Tax on Calls and Data
Federal government has slammed additional five per cent excise duty, that the telecom subscriber pays, which is different from the cost of voice call..
This was disclosed yesterday at a stakeholders’ meeting in Abuja, organised by the Nigerian Communications Commission (NCC).
Mr. Zainab Ahmed, minister of Finance, Budget and National Planning, was represented by Musa Umar, assistant director, Tax Policy, Federal Ministry of Finance, Budget and National Planning, while Frank Oshanipin, assistant chief officer in the ministry, did the ministry’s presentation.
But the Association of Licensed Telecoms Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON), and National Association of Telecoms Subscribers (NATCOMS), have described the move as strange, insensitive, and irresponsible.
However, minister of Finance, Budget, and Planning, at the event, urged stakeholders to support the implementation of the 5 percent exercise duty on telecommunications services.
She highlighted that countries in Africa like Malawi, Uganda, Tanzania, and others have all keyed into this revenue generation pattern.
She emphasised that this is needed to change Nigeria’s economic situation for good.
“The issue of revenue is not something that needs to be shied away from, our revenue can no longer take care of our needs as a country.
“Also Nigeria is no longer making enough money in Oil revenue hence the attention is shifting to Non-revenue”.
She explained that the government is committed towards implementing the regulation in a seamless manner that will not affect Nigerians.
Earlier, in his remark, Prof Umar Danbatta, executive vice chairman/CEO NCC, said the forum is necessitated for stakeholders to get better clarifications on the 5% exercise duty on telecom services implementation.
“As the telecoms industry regulator, the Nigerian Communications Commission has engaged with the Federal Ministry of Finance, the Nigerian Customs Service, and consultants from the World Bank to get needed clarifications.
“These engagements enabled us to better understand the objectives and proposed implementation mechanisms of the Excise Duty.
“Nonetheless, we consider it imperative that these implementing agencies should also meet directly with telecoms industry stakeholders to address areas of concern”, he stated.
On his part, Hameed Ali, comptroller general of the Nigerian Customs Service, urged stakeholders to be patriotic toward implementing the policy.
Hameed represented by Mrs A.S Oshishi, assistant comptroller general NCS, revealed that telecommunications operators are expected to be dully registered with the service for seamless actualization of the process.
“Either to pass the cost to consumer or capture it in an appropriation. The payment is to be made in arrears, on the 21st of every month”, he stated.
Reacting to the development, Engr Gbenga Adebayo, chairman, ALTON, insisted that the new tax burden would be passed to subscribers.
“It is a strange move, it appears a bit unusual. exercise duty is supposed to be apportioned to goods and products, but we are surprised this is on Services.
“We will continue to support the government but ALTON, won’t be able to subsidy this on behalf of subscribers in addition to the 7.5% VAT making it 12.5% payable by subscribers to the federal government.
“We currently pay a lot of taxes, running into 39 of them, so we can add more to our existing burden. We won’t be able to absolve this on behalf of subscribers.
“The 5% Excise Duty will be paid by the subscribers. It will collected by the operators on all voice and data services including OTT and remitted to the Nigerians Customs”, he stated.
Elsewhere, Engr Ken Nnamani president of ATCON, said, “the proposed exercise duty do not comply with principle of taxation, fairness, certainty, convenience and efficiency”.
Nnamani represented by Mr Ajibola Olude, ATCON executive secretary, said FG has continued to turn a blind eye to the issue of foreign exchange, others challenges facing telecom operators in Nigeria.
He added that the telecom industry is bleeding yet the federal government want to exacerbate the plight of operators with additional taxation.
He appealed that the implementation of the exercise duty should be stepped down because many youths in Nigeria will lose their jobs.
He advised that the government should channel its efforts to developing other sectors.
Similarly, Chief Deolu Ogunbajo, president, National Association of Telecoms Subscribers (NATCOMS), said the government’s action is insensitivity and ill-timed.
“It is unfortunate that 5 percent exercise duty is coming again together with other 38 taxes.
He said, other countries in Africa paying 5% tax on telecommunications services do not have 39 others taxes.
In his words, “this is insensitivity, and irresponsible. Government should not kill the telecom industry”.
Viral rumors about a “Tesla Pi Phone” a new phone, being developed by Elon Musk, CEO and largest shareholder of Tesla and SpaceX, are entirely fake.
AI Generated Tesla Pi Phone and Elon Musk
Instead, the tech giant said on Monday it has filed an application with the US Federal Communications Commission for permission to deploy the constellation by 2028.
It said the system would provide voice, messaging, data and emergency services.
A quick fact-check revealed that Tesla Inc. has never manufactured, developed, or released a smartphone.
Videos and articles claiming a release (often priced between $150 and $800 with solar charging or satellite-only connections) rely on AI-generated concept art and recycled internet hoaxes dating back to 2021.
Musk has only mentioned a phone in hypothetical remarks, stating Tesla would build one only if major app stores completely blocked or censored essential apps like X (formerly Twitter).
On Monday however, his company said that “Amazon looks forward to delivering on the promise of D2D [direct-to-device] connectivity, including to the millions of people living, travelling and working in places beyond the reach of existing networks today,”
The filing is the first step from Amazon into satellite mobile connections, which has until now been dominated by SpaceX’s Starlink service.
Musk’s group has signed partnerships with existing operators such as T-Mobile US and the UK’s Virgin Media O2 to provide phone services for customers where their conventional networks do not reach.
Starlink operates across more than 150 countries, offering high-speed internet connections through its constellation of satellites.
Association of Licensed Telecommunications Operators of Nigeria (ALTON) has attributed rising mobile data consumption to increased use of smartphone applications, cloud services and emerging digital technologies.
Mr Gbenga Adebayo, chairman, ALTON
Mr Gbenga Adebayo, chairman, ALTON, disclosed this on Tuesday at the Lagos Chamber of Commerce and Industry (LCCI) conference in Lagos.
Adebayo said smartphones had transformed access to digital services, with many applications consuming data continuously, even when users were not actively browsing the internet.
He explained that automatic software updates, cloud backups, application synchronisation, video streaming, social media autoplay and location services significantly increased data consumption.
According to him, internet usage had changed considerably from a decade ago when consumers mainly relied on direct browsing with fewer digital applications running simultaneously.
He said growing adoption of artificial intelligence, cloud computing and other emerging technologies would further increase demand for reliable connectivity and greater network capacity.
“The evolution of smartphones has fundamentally changed how consumers access digital services, with many applications now consuming data continuously,” Adebayo said.
He stressed that digital literacy had become increasingly important because consumers needed to understand how their devices and applications consumed mobile data.
He advised subscribers to monitor application activity, adjust device settings and use built-in data management tools to better control their data consumption.
Adebayo said greater understanding of digital tools would help dispel misconceptions about data usage and strengthen public confidence in Nigeria’s telecommunications industry.
Responding to allegations that operators deliberately depleted customers’ data, Adebayo dismissed the claims, insisting telecommunications companies had no commercial incentive to engage in such practices.
He said every megabyte consumed on telecom networks was recorded through internationally standardised billing systems supplied by recognised technology vendors and regulated by authorities.
“Such a practice would be unlawful, unethical, commercially self-defeating and subject to stringent regulatory oversight by the Nigerian Communications Commission,” he said.
Adebayo explained that operators’ billing systems were designed to guarantee accuracy, transparency and verification, while genuine consumer complaints were investigated through established protection channels.
He added that the Nigerian Communications Commission’s complaint resolution mechanisms and technical audits provided consumers with credible avenues for seeking redress over billing concerns.
According to him, trust remains essential to expanding Nigeria’s digital economy because telecommunications infrastructure supported banking, healthcare, education, commerce and government services.
He said the telecommunications sector had evolved beyond basic communication services into a critical driver of productivity, investment, innovation and national economic growth.
Adebayo noted that emerging technologies, including artificial intelligence, financial technology, smart manufacturing and digital agriculture, depended on resilient telecommunications infrastructure.
He said Nigeria could only maximise these opportunities through sustained collaboration among government, regulators, telecommunications operators and consumers.
Adebayo reaffirmed operators’ commitment to improving customer experience, strengthening network resilience and promoting transparency in telecommunications service delivery.
He urged stakeholders to encourage evidence-based discussions on digital services, stressing that public trust remained indispensable for the sustained growth of Nigeria’s digital economy.
(NAN)
Telecom
Galaxy Backbone Soft Launches Government Service Portal to Simplify Access to Public Services
Galaxy Backbone (GBB), in partnership with the Federal Ministry of Communications, Innovation & Digital Economy (FMCIDE) and the Korea International Cooperation Agency (KOICA), officially conducted the soft launch of the Government Service Portal (GSP), a groundbreaking digital platform designed to transform how citizens, businesses and government institutions interact.
The event, held at the Galaxy Backbone National Shared Services Centre (NSSC) Headquarters in Abuja, brought together senior government officials, development partners, technology stakeholders and members of the media to unveil services.gov.ng—Nigeria’s new one-stop digital gateway for accessing government services.
The Government Service Portal is designed to provide a single, trusted platform through which Nigerians can easily discover, access and interact with digital services offered by Ministries, Departments and Agencies (MDAs). By consolidating government services into one unified portal, the initiative aims to improve accessibility, enhance service delivery and create a more seamless citizen experience.
Speaking at the event, the Managing Director/Chief Executive Officer of Galaxy Backbone. Professor Ibrahim Adeyanju, stated that the launch represents another significant milestone in Nigeria’s digital transformation journey and reflects the Federal Government’s commitment to building a more connected, efficient, transparent and citizen-centred public service.
He emphasized that the Portal is more than a website; it is the foundation of a unified digital gateway that places the needs of citizens and businesses at the centre of government service delivery.
He further noted that while the event marks the beginning of the Portal’s journey, the soft launch provides an opportunity to onboard pioneer MDAs, gather user feedback, strengthen system integrations and continuously improve the platform ahead of a wider national rollout.
Representing key stakeholder institutions at the launch were the Deputy Director of KOICA Nigeria, Mr. Ki Yun Baik; the Permanent Secretary of the Federal Ministry of Communications, Innovation & Digital Economy, represented by Mr. Joseph Bareiye, Director of e-Government; the Permanent Secretary, State House, represented by Mr. Oguntuyi Olusegun, Head of ICT; and the Executive Director, Digital Exploration and Technical Services, Galaxy Backbone, Olumbe Akinkugbe.
The Government Service Portal aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu, GCFR, and supports Nigeria’s broader Digital Public Infrastructure (DPI) agenda by creating a citizen-facing gateway that complements existing investments in digital identity, secure infrastructure, cloud services, cybersecurity and digital government platforms. It can be accessed using the link: services.gov.ng . The initiative is expected to strengthen public service delivery, increase transparency, improve operational efficiency and foster greater trust between government and citizens.
Galaxy Backbone reaffirmed its commitment to supporting all Ministries, Departments and Agencies in integrating their digital services into the Portal, noting that collaboration across government will be critical to building an inclusive, interoperable and efficient digital ecosystem that benefits every Nigerian.
The Government Service Portal is expected to evolve into Nigeria’s central digital gateway for public services, making government services simpler, faster and more accessible for citizens and businesses alike.
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