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Telcos Wax Worriedly over Annual Due Review by FRC

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Gbenga Adebayo, chairman, ALTON
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Association of licensed Telecom Companies of Nigeria (ALTON), umbrella body of telecom operators in the country, has raised the alarm over the review of annual payment structure under the Financial Reporting Council Amendment Act 2023 (FRC Act), warning that its implementation will hurt telecom operators.

Telcos Wax Worriedly over Annual Due Review by FRC

The group warned that “the new structure would pose significant challenges for our members, especially in light of the prevailing harsh economic conditions in the country”.

A letter addressed to Dr Rabiu Olowo, executive secretary/CEO, Financial Reporting Council of Nigeria, dated September 13, 2024 and jointly endorsed by Gbenga Adebayo, chairman, and Gbolahan Awonuga, executive secretary of ALTON respectively, highlighted the concern of the reviewed annual payment structure.

“ALTON writes to express its deep concerns regarding the recent review of the annual payment structure under the Financial Reporting Council Amendment Act 2023 (FRC Act) particularly as it relates to non-quoted public interest companies.

As you are aware, the new payment structure is based on a percentage of the annual turnover of our member companies, rather than the previous maximum cap of N1 million that was payable under the Act. Section 33(1)(d) of the Act now requires private companies to pay their annual dues based on the computation below: 0.02% of annual turnover of N25 million and below; 0.025% of annual turnover of more than N25 million but not more than N50 million; 0.03% of annual turnover of more than N50million but not more than N500 million; 0.04% of annual turnover of more than N500 million but not more than N1 billion; 0.045% of annual turnover of more than N1 billion but not more than N10 billion; and 0.05% of annual turnover of more than N10 billion.

“On the other hand, Section 33(1) (c) of the Act determines the annual dues payable by quoted companies with reference to a percentage of their market capitalization up to a pre-determined lower amount, which is more favourable to publicly quoted entities compared to the non-publicly quoted entities.  For example, a publicly quoted company with market capitalization of N1 trillion will be required to pay N25 million as annual dues, whilst a non-publicly quoted company will be required to pay 0.05 percent of N1 trillion amounting to N500million. We are concerned about the huge disparity in the amounts payable as annual fees by entities having the same turnover figure deserves to be addressed in the face of the harsh operating environment in the country.

“While we understand the rationale behind this review, we believe that implementing the new structure would pose significant challenges for our members, especially in light of the prevailing harsh economic conditions in the country. The telecommunications industry in Nigeria has been facing numerous headwinds, including rising operating costs and foreign exchange fluctuations. The current payment structure will place an undue burden on our members, potentially impacting their ability to maintain operations and continue providing critical services to the Nigerian public,” ALTON wrote.

The group noted that when considering the balance between enforcing the law and the need for Foreign Direct Investment (FDI), as well as the demand for bridging the telecom infrastructure deficit to enhance digital penetration, it urged the FRC to consider adopting alternative computation for companies within the telecommunications industry.

“We respectfully urge the FRC to consider the following suggestions as alternatives: Computation of annual dues based on profit and not revenue.

“By virtue of the nature of the telecommunications industry, our members deploy significant capital towards carrying out their operations and bridging the telecommunications gap within the country. As such, there is a great disparity between the revenue of these companies and the profit which they declare. For example, a company might have a turnover of N200 billion and declare a profit of only N15 billion and it would be unfair for such a company to pay FRC dues based on its revenue. We consequently request that the FRC uses its good office to consider computation of the annual dues for companies within the telecommunications industry, based on their profit as opposed to revenue,” ALTON suggested.

Another suggestion was the reintroduction of a pre-determined cap on the FRC dues.

“We note that the new Act in Section 33 (1)(c) computes the annual dues payable by public companies based on their market capitalization but subject to a pre-determined cap. For example, a public company with a market capitalization of N500 billion will either pay 0.0025% of this amount or N20 million, whichever is lower. On the other hand, a private company with the same revenue will pay N250 million. This disparity is significant and unfair to private companies. In the interest of fairness, we urge your good office to consider reintroducing a pre-determined cap on the dues payable by non- quoted public interest entities, similar to that which is applicable to public companies.

“In the light of the foregoing, ALTON respectfully request you to use your good office to change the basis of computing the annual dues payable based on either of the option mentioned above.   We are committed to working constructively with the FRC to find a mutually acceptable resolution to this matter. We would be more than willing to arrange a meeting with your office to discuss this issue in detail and explore alternative solutions or payment arrangements that would be more manageable for our member companies.

“We firmly believe that a collaborative approach would be in the best interest of the industry, the regulatory environment, and the overall economic well-being of the country,” ALTON stated.


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Vitel Wireless Partners Fintechs to Expand Access to Services

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Vitel Wireless has entered into partnership with OPay Limited and Moniepoint Limited, to expand access to airtime and data services, particularly in Nigeria’s underserved and rural communities.

Vitel Wireless Partners Fintechs to Expand Access to Services

The collaboration enables millions of customers on both fintech platforms to seamlessly purchase Vitel Wireless airtime and data directly from their bank accounts and digital wallets, a move designed to simplify access and improve connectivity nationwide.

Chudi Nwabueze, chief operating officer, Vitel Wireless, said the initiative highlighted the growing convergence between financial services and telecommunications in Nigeria.

He noted that by leveraging the expansive reach and infrastructure of fintech platforms, the company is removing long-standing barriers to mobile access.

Nwabueze added that the move builds on Vitel’s existing partnerships with traditional financial institutions such as Fidelity Bank and Zenith Bank, extending its footprint into the rapidly growing fintech ecosystem.

“This integration allows users to conveniently top up airtime and purchase data bundles through familiar banking and wallet platforms, improving accessibility and overall user experience,” he said.

Also speaking,  Odera Ben-Chiobi, product marketing manager, Vitel Wireless, said the partnership aligns with the company’s mission to democratize access to mobile connectivity across Nigeria.

According to her, the collaboration will bring telecom services closer to millions of Nigerians, especially in areas where access has historically been limited.

She added that combining telecom services with digital financial platforms will also support broader financial inclusion efforts.

Vitel Wireless currently operates nationwide through a network-sharing agreement with MTN Nigeria, leveraging MTN’s infrastructure to deliver its services across the country.

The company noted that the partnership reflects a shared commitment to inclusive growth, with the potential to accelerate both financial inclusion and digital connectivity across Nigeria.

 

 


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Reps Claim NCC’s Weak Regulatory Oversight Responsible for Poor Telecom Services

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House of Representatives on Wednesday claimed that Nigerian Communications Commission’s (NCC)  weak regulatory oversight, was responsible for the country’s ongoing poor telecom service quality.

Reps Claim NCC’s Weak Regulatory Oversight  Resposible for  Poor Telecom Services

The lawmakers accused the NCC of failing to enforce standards that would compel operators to provide reliable connectivity.

They warned that persistent issues like dropped calls, slow data speeds, and network failures pose serious risks to lives and property, particularly during emergencies.

The resolution followed the adoption of a motion of urgent public importance moved by Ahmadu Jaha, representing Chibok/Damboa/Gwoza Federal Constituency in Borno State.

Speaking on the motion, Jaha emphasised the critical role of telecommunications in Nigeria’s economy and daily life, while lamenting the widening gap between subscriber expectations and actual service delivery.

“Telecommunication has become a vital part of everyday life in Nigeria. It connects families, supports businesses, enhances education, and drives economic growth. However, despite its importance, the quality of service provided by many telecom companies remains unsatisfactory,” he said.

Jaha highlighted recurring problems such as dropped calls, poor internet speeds, and failed message deliveries as signs of deeper systemic failures in the sector.“The House is concerned that poor network connectivity is a major issue.

Subscribers frequently experience dropped calls, slow internet speeds, and difficulty sending messages. This affects both personal communication and business operations, leading to frustration and financial losses,” he added.

Lawmakers also expressed dissatisfaction with the high cost of services relative to the quality received.

Jaha noted that Nigerians pay substantial amounts for data bundles that are quickly depleted due to unstable connections and frequent interruptions.

He further pointed to inadequate customer service, where complaints often go unresolved for long periods, hindering emergency communications during fire outbreaks, medical emergencies, or accidents.

The lawmaker attributed part of the problem to insufficient infrastructure expansion, especially in growing urban centres and underserved rural areas.

“Network congestion during peak hours and in densely populated areas shows that infrastructure development has not kept pace with the growing number of users,” he said.

Supporting the motion, George Ozodinobi, deputy minority whip, accused telecom operators of prioritising profits over service quality while faulting the NCC for regulatory complacency.

“It is like these companies have made enough profits in billions, and so, they don’t care about improving the network anymore. The NCC, the regulator, has become complacent,” Ozodinobi stated.

Despite the sector’s rapid growth from under one million lines in the early 2000s to over 200 million active subscriptions today challenges such as insufficient base stations, unreliable power supply, multiple taxation, and infrastructure vandalism continue to hamper service quality.

In its resolution, the House urged telecom companies to invest in modern infrastructure, expand coverage especially in rural communities, improve customer service, and adopt fairer pricing that reflects actual service quality.

The lawmakers also directed the NCC to enforce stricter quality-of-service standards and hold operators accountable.

They further resolved to set up an ad-hoc committee to investigate the root causes of poor service delivery and recommend appropriate legislative measures.

 

 


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GSMA Africa Policy Group Chair Calls for Urgent Tax Reforms to Accelerate Digital Inclusion

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Mr. Daddy Mukadi, the Chief Regulatory Officer of Airtel Africa and Chair of GSMA Africa’s Policy Group, has called on African governments to recognise telecommunications as a core economic pillar and to implement two specific tax reforms that could dramatically accelerate digital inclusion across the continent.

Speaking at the first edition of the États Généraux du Secteur des Postes et Télécommunications in Kinshasa, DRC – an event convened to support the development of a strategic roadmap for the country’s digital and telecommunications sector and attended by H.E. President Félix Tshisekedi – Mukadi, who’s also a member of the GSMA Global Policy Group, urged government and industry stakeholders to rethink the role of telecommunications in national development.

He argued that it should be framed not as a sector specific concern, but as a continent-wide imperative.

“The telecoms sector can no longer be considered merely as a support sector,” Mukadi said. “It is now a core sector. Both are vital, and every other sector, from security and finance to transport and health, depends on digital technology for growth.”

His remarks come at a critical moment for Africa’s digital economy. According to the GSMA’s Mobile Economy Africa 2025 report, the mobile sector contributed US$220 billion to the continent’s economy in 2024. This is equivalent to 7.7% of GDP and is projected to reach US$270 billion by 2030.

Yet despite mobile networks now covering 95% of Africa’s population, nearly 75% of people across the continent remain offline.

The GSMA identifies this gap as Africa’s greatest connectivity challenge, driven above all by the unaffordability of devices.

Mr. Mukadi, therefore, called for strategic adjustments to public policy, as well as legal and regulatory frameworks, to support wider access to digital services.

He asserted that the telecommunications sector should be treated as a foundational pillar of economic development, with stakeholders working together to accelerate investment, expand coverage and close the usage gap across the continent.

The Chief Regulatory Officer of Airtel Africa also highlighted key barriers to digital inclusion, including the affordability of smartphones and the impact of import duties on telecommunications infrastructure.

He proposed a two-to-three-year exemption on import duties and taxes for entry-level smartphones priced between US$40 and US$150 to help bridge the usage gap. He also called for the removal of entry duties on telecommunications equipment for at least three years to support the expansion of network coverage.

According to him, “these measures would help deliver inclusive and sustainable digital technology for economic and social progress,” Mukadi said. “They would also support faster connectivity, improved access and the ability to connect more people, businesses and communities to the digital economy.”

He added that government and the private sector must work closely to create a regulatory environment that encourages innovation, protects consumer interests and supports long-term investment.


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