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9% Communication Tax: Soft Land for OTT To ‘Knife’ Telcos

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Chukwuemeka Fred Agbata, presenter of Tech Trends on Channels Television
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The proposed nine per cent tax on communications services by the Federal Government has variously attracted more ‘nays’ than ‘ayes’ from different quarters. It is expected owing to the fact, if the Bill scales through, 145.4 million active telephone lines (users) as at June 2016, will be affected.

Specifically, the Communications Service Tax” (CST) is proposed to be a nine per cent charge for the use of the communication service (Section 4 of the Bill), where communication service refers to voice, SMS, MMS, data, and pay per view TV; with focus on internet affordability; i.e., data costs, it is obvious that the tax is to be borne by all consumers.

Barrister Adebayo Shittu, minister of Communications has at different fora, labouriously explained to who cares to know that the goal of the proposed CST is to improve revenue generation as stated in Explanatory Memorandum of the Bill; in fact, the target is pegged at somewhat N20billion (monthly). Well, government should consider other alternatives and not try to further harm an industry that is already bleeding.

On one hand, the National Assembly should reconsider the passage of the CST bill. However, if the tax must be introduced the government must consider a lower tax rate that enables it to achieve fiscal, for instance, revenue targets without undermining broadband affordability and access. Besides the fact that subscribers are going to bear the cost, telecommunication operators will definitely become more vulnerable, particularly now that Over-The-Top content (OTT) providers are already pushing their (telcos) revenue downward which will make an already bad situation worse ultimately leading to further job losses. So, the Bill is a sort of robbing Peter to pay Paul.

Many people have predicted that subscribers will bear the full blunt. True as that sounds, I align with the school of thought that OTT platforms will provide a leeway. Yes, instead of paying a set amount to send a message via the regular service providers- MTN, Glo, Etisalat, Airtel or NTel, smartphone users will cleave more to apps like WhatsApp, WeChat, Viber, Facebook, Twitter, IMO, etc., all of which boast large customer bases and offer innovative features like the ability to send pictures and videos, seamlessly. Telcos own the network, but companies like Google, Facebook can pull surprises on them, should they think of yanking off OTT services from their network. In other words, the nine percent communications service tax as proposed spells more doom for the operators.

Ajay Sunder, Frost and Sullivan analyst, said the shift is hitting markets all around the world.

“Definitely in the developed economies we’re already seeing a trend of declining SMS revenues. But even in emerging economies, like Indonesia, some of the operators are already seeing the impact of OTT apps on their voice and SMS revenue. With Thailand, for example, the minutes of usage of the top three voice providers actually declined close to 4 percent when Line was introduced in 2011.”

Recently, during a Fecebook conversation, Rev’ Sunday Folayan, president of NiRA, sarcastically stated and I want to believe with him that “A lot of people will move to OTT services and the providers will lose significant revenue. Many are not making 9% profit right now. They creatively cheat the end users. The proposed 9% Telecommunications tax in Nigeria is the confirmation of the transliterated Yoruba adage that says … The sheep, saw docility, before snatching the meat from the carnivore.

“Communication Companies in Nigeria cannot see the need for the proposed tax given the fact that the nascent industry should be cultured to enhance the country’s GDP right now, instead of milking it at infancy. Do not be blinded by the MTN Infraction”.

Nurudeen Sulieman nodded in agreement saying, “True talk. With all this 5GB data for 50 Naira Promo you hear every day, GSM operators are now operating like banks, they give sales target not just to the marketing staff, even the few technical staff they have left, as most of their infrastructure and switches have been passed over to a third party for operations and maintenance. ‘Kai’ ‘wetin this people they think self’, when NCC just announce that telephone operators have lost almost 50% of their subscribers.

“I understand the minister is so excited that his ministry will be generating 2 Billion Naira monthly from that tax…Apart from the fact that the target is not achievable because end user will drop by a margin unimaginable, whatever money they generate from the 9% tax will end up as social security stipend for a sizable workers that will be laid off by the same Telecom industry that are targeting. It will also be double jeopardy, because the normal tax will also drop due to low turnover by the operators. I beg make them think am well”.

Alliance for Affordable Internet (A4AI)-Nigeria Coalition in a document released recently, raised critical issues concerning compliance and how it will impact the telcos operations.

A4AI‎ said, “Compliance and responsibility for collecting payments placed on mobile operators. Compliance is likely to add a number of operational costs to operators. For example, rather than annually, all service providers are to file tax returns and pay the tax due not later than the last working day of the month immediately after the month to which the payment relates. So while the 9% tax is to be paid by consumers, analysis points to the fact that they will likely become additional burdens placed on operators as their operational costs will further rise.

While the impacts of the CST on the sector as a whole are major, the above analysis shows the direct, possibly unintended, impact on the consumer and specifically those in low-income groups and women, hence balanced fiscal policy must consider affordability of mobile broadband and should not put in place additional barriers that make Internet access unaffordable for millions of Nigerians.

In the words of Ken Nwogbo, Publisher, Nigeria CommunicationsWeek, “Discontinue the Controversial ICT Tax Now” and I’d simply add I CONCUR!

CFA is the founder of www.techsmart.ng and co-producer/presenter of Tech Trends on Channels TV

 


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NITDA Empowers 50 Enugu Youths with Digital Tools, Hails Mbah’s Support

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In a significant step toward deepening digital inclusion in Enugu State, the National Information Technology Development Agency (NITDA) has empowered 50 young innovators with digital tools, while commending Governor Peter Mbah for his pivotal support of the Agency’s South-East Zonal Office.

NITDA Empowers 50 Enugu Youths with Digital Tools, Hails Mbah's Support

NITDA

Delivering the goodwill message at the event, NITDA Director General Kashifu Inuwa, represented by Dr. Aristotle Onumo, Director of Stakeholders Management and Partnerships, described the Governor’s commitment as instrumental to the successful launch and rapid performance of the Zonal Office, now recognised as one of NITDA’s top-performing offices nationwide.

“Inuwa noted that Enugu, historically known as Nigeria’s coal city, is undergoing a transition from natural-resource reliance to a knowledge-driven economy. ‘Enugu was once an energy capital powering industries from beneath the earth. Today, the energy driving Enugu is the creativity, talent, and determination of its young people,’” the DG’s message read.

Highlighting the role of digital technology in global economic growth, Inuwa cited projections that the digital economy could contribute up to $23 trillion to global GDP in the coming years, stressing that investment in digital skills today will shape national prosperity tomorrow.

As part of the initiative, over 900 youths registered on NITDA’s digital training platform, with 50 outstanding participants receiving digital tools to enhance their skills and foster innovation. Additionally, 250 participants were recognised for their dedication and excellence throughout the training.

“Nigeria must not only consume technology but create it. Innovation must become our currency, and digital skills must become the bridge to opportunity,” Inuwa emphasised, noting NITDA’s goal of achieving 70 percent digital literacy among Nigerians by 2027.

The initiative aligns with the Agency’s broader strategy to shift the nation from a resource-based economy to a knowledge-based economy driven by innovation, entrepreneurship, and technology.

Governor Peter Mbah, in his remarks, described the festival as more than a technology conference, calling it “a reinforcement of intent” and a validation of the state’s ambition to become a credible node in Nigeria’s growing innovation ecosystem.

Drawing a comparison between Enugu’s historic coal industry and its emerging digital future, he observed that while coal once powered industries across Europe and West Africa, the economic benefits largely left the state.

Today, he argued, Enugu’s greatest resource is its people—their creativity, skills, and innovative potential.

By investing in technology, education, and digital infrastructure, Mbah envisions a future where the state harnesses local talent to generate value, turning ideas into globally competitive solutions and establishing Enugu as a hub of knowledge and digital innovation.

Referencing global technology giants such as Apple, Microsoft, Amazon, Meta, and Tesla, he stressed that control over digital infrastructure is the key to economic leverage in the 21st century.

“Find what is broken, understand it deeply, and fix it properly,” he advised, underscoring that innovation is not about glamour but solving real problems.

He highlighted Enugu’s progress in embedding artificial intelligence in security operations, digitising core government functions, and introducing Geographic Information Systems in land administration to enhance efficiency and strengthen land rights.

Earlier, Dr. Prince Lawrence Ezeh, Enugu State Commissioner for Innovation, Science, and Technology, delivered the welcoming address, highlighting the progress made since the inaugural edition of the festival.

He noted that thousands of youths have been trained through digital skills initiatives, strategic partnerships have been launched—including Nigeria’s largest tech hub initiative—and technology clusters in blockchain and gaming have expanded, positioning Enugu as an emerging national tech leader.

Dr. Ezeh outlined the core objectives of ETF 2026: transforming businesses through innovative strategies aligned with the digital economy, and strengthening communities by fostering collaboration and resilience.

He also revealed ongoing reforms to embed technology across governance and public services, including advanced real-time security systems, smart green schools, and modernised public service platforms.

Other dignitaries in attendance included Anna Vesterholm, Ambassador of Sweden to Nigeria; Aminu Maida, Executive Vice Chairman of the Nigerian Communications Commission; alongside captains of industry and leading technology experts.


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Sophos Report: Identity Attacks Drive 67% of Cyber Incidents as Threat Groups Surge in 2025

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Sophos, a global leader of innovative security solutions for defeating cyberattacks, today released the 2026 Sophos Active Adversary Report.

Sophos Report: Identity Attacks Drive 67% of Cyber Incidents as Threat Groups Surge in 2025

John Shier

It reveals that 67% of all incidents investigated by Sophos Incident Response (IR) and Managed Detection and Response (MDR) teams last year were rooted in identity-related attacks.

The findings highlight how attackers continue to exploit compromised credentials, weak or missing multifactor authentication (MFA), and poorly protected identity systems, often without needing to deploy new tools or techniques.

Key findings include:

  • A shift from exploited vulnerabilities toward compromised credentials, with brute-force activity (15.6%) drawing almost level with exploitation (16%) as an initial access method
  • Median dwell time declined to three days. This was driven by attackers’ movements, but also by defenders reacting more swiftly. This was particularly notable in MDR environments.
  • Attackers are getting faster at reaching Active Directory (AD). Once an attacker is inside an organization it takes them just 3.4 hours to get to the AD server.

·       Ransomware  remains a firmly off-hours activity. 88% of ransomware payloads are deployed out of hours, and 79% of data exfiltration actions take place out of hours, emphasising the continued need for 24/7 coverage.

  • Lack of telemetry undermines defense efforts. Missing logs due to data retention issues doubled over last year. This rise was largely driven by firewall appliances where the default was only seven days, and in some cases, 24 hours.

Identity Attacks Accelerate While MFA Gaps Persist

The report shows a continued rise in attacks rooted in identity compromise, including stolen credentials, brute-force activity, and phishing. 

While exploited vulnerabilities remain a factor, attackers increasingly rely on valid accounts to gain initial access, allowing them to bypass traditional perimeter defenses. 

There was also a lack of MFA in 59% of cases, facilitating the abuse of stolen and compromised credentials to penetrate an organization.

“The most concerning finding in the report has actually been years in the making: The dominance of identity-related root causes for successful initial access.

“Compromised credentials, brute-force attacks, phishing, and other tactics leverage weaknesses that can’t be addressed by simple patch hygiene. Organizations must take a proactive approach to identity security,” said John Shier, Field CISO and lead author of the report.

More Threat Groups, Broader Risk

Sophos researchers observed the highest number of active threat groups recorded in the report’s history, expanding the overall threat landscape and increasing the challenge of attribution.

  • Akira (GOLD SAHARA) and Qilin (GOLD FEATHER) were the most active ransomware brands observed, with Akira dominating across 22% of incidents
  • 51 ransomware brands appeared across cases, including 27 returning brands and 24 new ones
  • Only four brands or techniques, LockBit, MedusaLocker, Phobos, and abuse of BitLocker, have persisted continuously since 2020, the first year of Active Adversary Report data

“Law enforcement action continues to cause disruption in the ransomware ecosystem. Although we still see activity from LockBit, the dominance and reputation it once had has clearly been impacted.

“However, it means we are seeing a raft of other groups vying for dominance and many more emerging groups. For defenders, it’s important to understand the groups and their TTPs in order to best protect your organization,” continued Shier.

AI Hype Meets Reality

Despite widespread predictions, Sophos found no evidence of a major AI-driven transformation in attacker behavior. While generative AI has increased the speed and polish of phishing and social engineering, it has not yet produced fundamentally new attack techniques.

“AI is adding scale and noise but not yet replacing attackers. While in the future GenAI could be the next accelerator, right now the fundamentals still matter: strong identity protection, reliable telemetry, and the ability to respond quickly when something goes wrong,” said Shier.

Defensive Takeaways

Based on the findings of the 2026 Active Adversary Report, Sophos recommends organizations:

  • Deploy phishing-resistant MFA and validate its configuration
  • Reduce exposure of identity infrastructure and internet-facing services
  • Patch known vulnerabilities promptly, especially on edge devices
  • Ensure 24/7 monitoring through MDR or equivalent capabilities
  • Preserve and retain security logs to support rapid detection and investigation

 The 2026 Sophos Active Adversary Report analyzed 661 IR and MDR cases handled between November 1, 2024 and October 31, 2025, spanning organizations across 70 countries and 34 industries.

You can read the full report here[SE1] . https://www.sophos.com/en-us/blog/2026-sophos-active-adversary-report 


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NDPC Urges Education Ministry to Prioritise Data Protection Compliance

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Nigeria Data Protection Commission (NDPC) has urged the Federal Ministry of Education to ensure strict compliance with data privacy regulations across Nigeria’s education sector to protect personal information and bolster the nation’s digital infrastructure.

NDPC Urges Education Ministry to Prioritise Data Protection Compliance

NDPC

National Commissioner and Chief Executive Officer of NDPC, Dr. Vincent Olatunji, issued the call during a working visit to the Minister of Education, Dr. Tunji Alausa, and the Minister of State, Dr. Suwaiba Said Ahmad.

Dr. Olatunji highlighted a significant compliance gap in how educational institutions manage sensitive data, noting that while data underpins President Bola Tinubu’s Renewed Hope Agenda, adherence to protection laws remains low in the sector.

“The significance of data protection cannot be overemphasized as Nigeria transitions to a digital economy,” Dr. Olatunji stated, calling on the Ministry to lead efforts in regulatory compliance.

He outlined NDPC initiatives to raise awareness, including the Digital Privacy Awareness Campaign, Data Privacy Clubs in universities, the Secondary School Data Challenge, and the Adopt-A-School programme, which reached about 8,000 students during National Privacy Week.

The NDPC boss urged the Minister to leverage his office for sector-wide enforcement.

Dr. Olatunji offered free induction training for Ministry staff, Virtual Privacy Academy (VPA) vouchers, and spots in a free certification programme. A joint working group was established to drive implementation.

In response, Dr. Alausa acknowledged that data protection has often been approached with levity but affirmed alignment with the government’s goal of producing 50 million digitally literate citizens.

“It is high time all Ministries, Departments, and Agencies prioritise data protection,” Dr. Alausa said, pledging commitment to elevate schools and educational bodies to global standards.


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