Telecom
9% Communication Tax: Soft Land for OTT To ‘Knife’ Telcos
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
MENXTT TECH NG, a Lagos-based technology company, has launched an initiative to make quality Dell laptops more affordable for Nigerians through flexible payment plans and extended warranty support.
The company said the initiative was aimed at helping students, entrepreneurs, professionals and small businesses acquire reliable computing devices despite rising technology costs.
According to the company, customers can now purchase premium pre-owned Dell Latitude, Dell Precision and Dell Inspiron laptops at competitive prices, with selected models available under staggered payment arrangements.
The laptops, it said, are designed to meet the needs of users ranging from students and office workers to architects, engineers, software developers, graphic designers and video editors.
Speaking on the initiative, the Co-Founder of MENXTT TECH NG, Mr Anthony Emeka Nwosu, said access to quality technology should not be limited by financial constraints.
“A laptop is no longer a luxury; it is an essential tool for education, business and career development.
“Unfortunately, many people are forced to settle for unreliable devices because of the high cost of new laptops.
“At MENXTT TECH NG, we want to bridge that gap by providing durable Dell business laptops at affordable prices, backed by a full one-year warranty and flexible payment plans.
“We want every student, entrepreneur, freelancer and business owner to have access to technology that helps them succeed,” he said.
Nwosu explained that every laptop undergoes comprehensive testing before delivery and comes with a one-year warranty, an original charger, a complimentary laptop bag, Windows 11 operating system and Microsoft Office Suite pre-installed.
He added that the company, an authorised Bitdefender Antivirus reseller in Nigeria, also installs genuine Bitdefender security software on every system to protect customers against cyber threats.
According to him, customers requiring additional productivity tools can also have licensed Foxit PDF software installed on their devices.
Nwosu said the flexible payment option was introduced in response to prevailing economic realities, enabling customers to spread payments over an agreed period.
He noted that the arrangement would make it easier for students, startups and growing businesses to acquire quality computers without placing excessive pressure on their finances.
Beyond laptop sales, the company provides information technology consultancy, computer repairs, software licensing, cybersecurity solutions and digital transformation services to organisations across Nigeria.
He reaffirmed the company’s commitment to supporting Nigeria’s digital economy by making dependable computing devices and enterprise technology solutions more accessible to individuals and businesses.
According to him, the initiative reflects MENXTT TECH NG’s vision of combining affordability, quality products and professional after-sales support to help more Nigerians participate in the country’s expanding digital ecosystem. (NAN)
National Information Technology Development Agency (NITDA) has called for stronger collaboration among government, industry, academia and technology professionals to accelerate digital innovation and drive inclusive economic growth in Nigeria.
Dr. Aristotle Onumo, Director, Stakeholder Management and Partnerships, representing the Director General of NITDA, delivers a goodwill message at the 20th International Conference on Technology and Computing (RISE 2026) in Jos, reaffirming the Agency’s commitment to fostering digital innovation, strategic collaboration, and a technology-driven future for Nigeria.
The agency made the call at the 20th Nigeria Computer Society (NCS) International Conference 2026, held in Jos, Plateau State, where stakeholders examined strategies for leveraging emerging technologies to strengthen national development.
Speaking on behalf of the Director-General of NITDA, Mr Kashifu Inuwa, the agency’s Director of Stakeholders Management and Partnerships, Dr Aristotle Onumo, said Nigeria’s digital transformation would depend on sustained investment in innovation, digital skills, research and strategic partnerships.
According to him, collaboration across the public and private sectors is essential to translate emerging technologies into practical solutions capable of improving governance, creating jobs and enhancing the country’s global competitiveness.
Onumo said NITDA remained committed to implementing its Strategic Roadmap and Action Plan through initiatives that promote digital literacy, research and development, innovation ecosystems, cyber sovereignty and emerging technologies.
He added that the agency was expanding opportunities for innovators, entrepreneurs and startups through platforms designed to encourage collaboration, investment and technology-driven enterprise.
“We are transforming Digital Nigeria into the nation’s foremost innovation platform where policymakers, investors, startups, researchers and technology companies can collaborate to accelerate economic growth and digital transformation,” he said.
He urged innovators, startup founders and technology professionals to participate actively in the forthcoming Builders Summit by showcasing indigenous solutions capable of addressing Nigeria’s development challenges.
Declaring the conference open, the Governor of Plateau State, Mr Caleb Mutfwang, described digital technology as a critical driver of governance and economic development.
Mutfwang said his administration had adopted digital solutions to improve public service delivery, modernise government operations and enhance internally generated revenue.
He also identified technology as a key enabler for agricultural transformation, increased productivity and improved food security, urging participants to ensure that deliberations at the conference translate into practical outcomes for national development.
Earlier, the President of the Nigeria Computer Society (NCS), Prof. Muhammad Sirajo, said the conference was organised to strengthen collaboration among policymakers, researchers, regulators, technology professionals and industry leaders.
Sirajo said the conference, with the theme “Harnessing Digital Innovation and Emerging Technologies for Inclusive Growth and Economic Renaissance (RISE 2026),” focused on exploring how innovation could accelerate Nigeria’s socio-economic development.
He identified artificial intelligence, blockchain, cloud computing, cybersecurity and robotics as among the technologies shaping the future of economies across the world.
According to him, Nigeria’s youthful population and expanding digital ecosystem provide a strong foundation for building a globally competitive economy through sustained investment in digital infrastructure, innovation and skills development.
The conference attracted government officials, regulators, academics, development partners, technology professionals and private-sector stakeholders to deliberate on policies and innovations aimed at accelerating Nigeria’s digital transformation and inclusive economic renaissance.
Telecom
Hon. Minister Dr. Kingsley T. Udeh and ASUS To Unveil First of a Kind Flagship Store in West Africa
In a landmark moment for Nigeria’s technology retail sector, the Honourable Minister of Innovation, Science and Technology, Dr Kingsley Tochukwu Udeh SAN, will on Monday, August 3rd, commission a landmark ASUS Flagship Store in partnership with Nigeria’s leading e-commerce group Konga. The state-of-the-art facility is widely regarded as the first initiative of its kind in West Africa.
The commissioning will witness the visit of senior executives from the world-renowned technology brand to Nigeria, including EMEA General Manager, Mr. Aaron Tsai, alongside other. One of the purposes of their visit is to reinforce the strategic partnership with Konga and solidify the collaboration between both organisations, further demonstrating ASUS’ commitment to the Nigerian market.
The event is expected to also bring together key stakeholders from government, the technology industry, business community, and the media for what promises to be a defining moment in the evolution of technology retail in the region.
The development comes as Konga continues to accelerate its strategic partnerships with some of the world’s leading technology brands.
For years, Nigerian consumers have demanded more than just access to genuine technology products. They have increasingly sought immersive experiences, expert guidance, after-sales support, and greater confidence when making technology investments. The next chapter in this journey appears to address many of these expectations in a bold and innovative way.
The forthcoming announcement is expected to bring together global innovation in a manner that reflects the changing realities of today’s technology consumer. It also reinforces the growing confidence that leading international technology companies continue to place in Nigeria as one of Africa’s most strategic digital markets.
Industry analysts note that partnerships of this nature are becoming increasingly important as consumers place greater emphasis on authenticity, hands-on product experiences, technical support, and trusted purchase channels. Beyond selling devices, the future of technology retail lies in building complete customer experiences.
As anticipation builds for Monday, one thing is certain: the ASUS-Konga partnership promises to set new standards for tech retail in West Africa, elevating customer experience and reinforcing Nigeria’s digital transformation narrative.
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