Telecom
How FG, States & Local Councils Turn Telcos to ‘Cash Cows’

Declining income from the Federation Account due to the fall in oil prices; federal structure and the Constitution authorisation of certain items to be legislated across the three tiers of government, are among the causative factors why the telecoms in the country is over-regulated and multi-taxed.
This formed part of key message by Airtel Nigeria at the recent third quarterly seminar organised by IT reporters in Lagos, Shola Adeyemi, director, Legal & Regulatory Affairs/ Company Secretary, of the Company, noted that “drive to increase internally generated revenue particularly at the State and Local Government levels; and the notion that telecoms is a “cash cow” and should be the main target in raising revenue for state”, should be discouraged.
Adeyemi identified that mis-appreciation of the role of infrastructure in overall socio-economic development by taxation of infrastructure will constrain infrastructure deployment, whereas subsidizing deployment of same will facilitate broader tax revenues from the ensuing value chain of economic activity.
Although, the industry accounted for N640bn in license and spectrum fees & N220bn annually in taxes and regulatory fees; attracted significant Foreign Direct Investment; created over 3m jobs and contributed about N1.58trillion, accounting for 9.8% in GDP growth in second quarter 2016, based on National Bureau of Statistics report, the telecoms sector is heavily taxed.
How States Usurp Telcos On Right of Way
In the presentation, Airtel decried how Kogi, Kano, Delta, Rivers Abia, Oyo, amongst others charged huge fees on right of way, especially on Federal roads that pass through their States.
Although he didn’t state the year or period the fees were charged, but Adeyemi cited examples: “Kogi State Board of Internal Revenue demanded the total sum of N2, 295, 000, 000 as ground rent fees for fibre optic cables laid on Federal roads inspite of the fact that Airtel obtained Right of Way permit from the Federal Ministry of Works; Kano State Urban Planning & Development Authority (KNUPDA) demanded the sum of N196,250,000 as Right of Way fees for fibre optic cables laid along federal Highway. KNUPDA also demanded for the sum of N324, 250,000 as annual planning permit renewal fees inspite of the fact that planning permit is a one-off fee”.
“Delta State Ministry of Environment demanded for the sum of N733,000,000 as Ecology fees for the period 2007 -2015; Rivers State Internal Revenue Services demanded for the sum of N1,600,000 as Premises fitness fees;
“Abia State Ministry of Industry, Science & Technology demanded for the sum of N96,000, 000 as Business Premises permit. Base Stations are classified as Business Premises;
“(Oyo) State Board of Internal Revenue demanded for the sum of N3,000,000 as Business Premises fees.
“National Inland Waterways Authority (NIWA) demanded for a total sum of N1,056,435,750.00 as right of way fees for fibre optic cables laid within the Federal Government’s Right of Way in Northern States inspite of the fact that similar fees had already been paid to Federal Ministry of Works.
Meanwhile, in May 2015, the office of Dr. (Mrs) Ngozi Okonjo-Iwuala, the erstwhile minister of Finance amended the Taxes and Levies (approved list for collection) Act Cap.T2, Laws of the Federation of Nigeria, 2004 (the Act).
By the foregoing, taxes for the Federal, State and Local Governments increased from 8 to 9, 11 to 25 and 20 to 21 items respectively; leading to new taxes such as Land use charge, Entertainment Tax, Environment (Ecology) fee, Infrastructure Maintenance Charge, Fire Service Charge, Property tax, Economic Development levy, Social Service Control levy. Caps placed on taxes such as business premises permit (N10,000) removed.
“The Amendment Order 2015,”Adeyemi said in his presentation, “legitimized multiple taxes & levies bedeviling telecoms industry and gave States unfettered powers to charge arbitrary fees”.
He also lamented that multiple taxation adversely impacts network costs, investment planning and business plan credibility; “Increased OPEX and lost revenue costs around N9bn each year depending on location and length of the shutdown. Adversely impacts other critical sectors (such as health, security, banking services, etc.) with attendant inevitable effect on the economy and affects emergency response and other related services which rely on communications services”.
Effects of Multiple Taxation
“Possible diversion of Foreign Direct Investments to other jurisdictions considered more investor-friendly; industry may not be able to adequately support Law Enforcement Agencies to investigate crimes at affected locations; probable barrier to broadband roll out with attendant adverse impact on internet penetration and services; unconventional tactics employed by the MDAs for the collection of the levies result in damage and injury to operators’ staff and property; and affects accurate business planning and forecasting which is critical for corporate growth”.
Adeyemi further called for political will, persuasive campaigns, cross‐sector and cross‐ministry coordination and executive power to implement and enforce the end of the multiple taxation regime.
“Airtel also aligns with industry stakeholders in canvassing for an implementation of a national strategy that will increase awareness of these issues and educate all about the impact of such acts, including the legal consequences; undertake critical review of current Taxes and Levies (Approved List for Collection); and expedited development and approval of a legal instrument to accord telecommunications networks the status and legal protection of Critical National Infrastructure”.
He said, “At 150m subscriber threshold and 107% penetration (June 16), telecoms plays a key role as an economic enabler and social overhead capital (SOC) with a 7% contribution to GDP.
“Stronger collaboration of relevant stakeholders required to address incidence of multiple taxation in order to ensure that the Quality of Service is improved upon for the ultimate benefit of the country”.
Telecom
NCC Blames NOGASA for Abuja Outage

Nigerian Communications Commission (NCC) has blamed the actions of the National Oil and Gas Suppliers Association (NOGASA), for the recent telecom blackout experienced in the Abuja area.

NCC
A statement issued on Friday by the Head, Public Relations, NCC, Mrs. Nnenna Ukoha, while acknowledging the challenges and impact of the degraded Quality of Service (QoS) in the area on subscriber experience, stated: “The challenges are a result of the activities of the National Oil and Gas Suppliers Association (NOGASA), which disrupted diesel supplies to sites with the attendant telecommunications services outages in Abuja.”
She however disclosed that the telecommunications sector regulator is committed to ensuring restoration of seamless communication services to the affected area, and all Nigerians at large, and recognizes the importance of reliable power supply for the provision of optimal telecommunication services.
“The Commission is collaborating with major stakeholders and licensees to address these challenges, largely caused by disruption to diesel supply affecting IHS Nigeria Limited, the colocation provider responsible for powering Airtel and MTN base stations in the affected areas.
“The NCC is actively engaging with relevant stakeholders to address the diesel supply issues and explore sustainable solutions.
“The Commission urges all parties to work together to collaboratively resolve these challenges swiftly by removing the diesel supply bottlenecks affecting critical telecommunications infrastructure, arising from NOGASA’s actions.
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“In the face of these challenges, we reiterate our commitment to fostering a conducive environment for the growth and sustainability of telecommunications services in Nigeria.
“We are taking proactive steps to facilitate dialogues between the impacted service providers and other stakeholders to promptly resolve the diesel supply concerns that have negatively impacted service quality.”
While assuring that the Commission remains dedicated to effectively managing the situation and will keep the public updated on progress towards restoring full telecommunication services in Abuja, Mrs. Ukoha appreciated subscribers for their patience.
“We thank telecommunications subscribers for their understanding and patience during this period and reaffirm our commitment to delivering high-quality telecommunications services nationwide,” she said.
Telecom
NITDA Charts Path for Kano as Innovation Hub

Mallam Kashifu Inuwa Abdullahi, Director-General of the National Information Technology Development Agency (NITDA), has called for a fundamental shift in Kano State’s economic strategy, urging stakeholders to embrace innovation, technology and collaboration as the drivers of growth in the 21st century.

Mallam Kashifu Inuwa Abdullahi, Director-General of the National Information Technology Development Agency (NITDA)
This is contained in a press statement e-authored by the Director of Corporate Communications & External Relations at NITDA, Hajia Hadiza Umar.
Speaking at the Kano Startup Weekend, Mallam Abdullahi acknowledged Kano’s long-standing reputation as the commercial nerve centre of Northern Nigeria and the wider Sahelian region, noting that its history of trade, enterprise and human capital provided a solid foundation for future growth.
Abdullahi emphasised that while these strengths powered Kano’s success for centuries, the modern economy now offered even greater opportunities through innovation and technology.
He described innovation as the process of transforming ideas into impactful solutions through commercialization, stressing that when ideas were effectively deployed, they created value, solved societal challenges and generated sustainable economic growth.
He noted that Kano’s large market, strategic location and vibrant entrepreneurial culture placed it in a strong position to take advantage of innovation-driven opportunities.
According to him, “Innovation is the process of taking an idea from inception to impact. Invention on its own is a cost centre, but when you commercialise an idea, when you turn it into a product or service that solves a real problem and creates value, that is when you begin to drive economic growth and inclusion.”
He noted that the state hosted numerous degree-awarding institutions across federal, state and private ownership, providing a strong base for human capital development.
However, the NITDA DG expressed concern that these institutions often operated in isolation from industry, with research outputs rarely translating into commercial or industrial applications.
He explained that innovation did not happen in silos and stressed the need for a strong, interconnected ecosystem that brought together academia, industry, startups, entrepreneurs and government.
According to him, universities should conduct research informed by industry needs, industries should leverage research to improve productivity and competitiveness, and startups should serve as the bridge that converted ideas into market-ready solutions.
The NITDA boss further encouraged entrepreneurs to leverage technology to build businesses that could grow beyond local markets, explaining that innovation-driven enterprises had the power to scale rapidly, create jobs and position Kano competitively at both national and global levels.
According to him, digital platforms and emerging technologies now made it easier for startups to reach wider markets and develop solutions that were previously unimaginable.
“You can start your business here in Kano, but your thinking must be global from day one. Technology has removed barriers. With the right skills and platforms, a startup in Kano can build solutions that serve not just Nigeria, but the world,” he noted.
Highlighting NITDA’s ongoing interventions, its Director-General outlined the Agency’s commitment to building national innovation capacity through targeted human capital development programmes.
He cited the Digital Literacy for All (DL4ALL) initiative, which aimed to equip Nigerians across all segments of society with essential digital skills, and the 3 Million Technical Talents (3MTT) programme, designed to produce a pipeline of globally competitive technical professionals in areas such as software development, data analysis and emerging technologies.
He said, “Through DL4ALL, we are ensuring that Nigerians at all levels have the basic digital skills needed to participate in the digital economy, while 3MTT is deliberately building a pipeline of globally competitive technical talents who can drive innovation, create jobs and attract investment.”
Abdullahi explained that these programmes were key pillars of President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritised skills development, innovation, job creation and inclusive economic growth as pathways to national prosperity.
According to him, empowering Nigerians with digital and technical skills was essential for building a resilient economy capable of competing in the global digital landscape.
“President Tinubu’s Renewed Hope Agenda is about investing in people, empowering them with relevant skills and creating opportunities for inclusive growth.
“At NITDA, we are using digital skills and innovation as tools to translate that vision into real economic impact for Nigerians,” he said.
The NITDA boss urged all stakeholders in Kano to work together to build a functional innovation ecosystem that could unlock the state’s vast potential and expressed confidence that with the right mindset, strong collaboration and sustained investment in digital skills and innovation, Kano could reclaim its historic leadership role and emerge as a major innovation and entrepreneurship hub in Nigeria and beyond.
Telecom
Minister Claims Bandits Exploit Poor Network, Bounce Calls Off Multiple Towers

Bosun Tijani, minister of Communications, Innovation and Digital Economy, yesterday claimed that bandits and terrorists are able to communicate and coordinate their activities with ease because they exploit gaps in the country’s telecommunications network.

Bosun Tijani, minister of Communications, Innovation and Digital Economy,
Tijani, who spoke Politics Today, a Channels Television’s programme, on Friday, Tijani said the criminals exploit gaps in the country’s telecommunications network.
He also claimed the bandits use advanced technology to bounce calls across multiple towers in areas with poor connectivity.
“They weren’t using the normal towers; they bounced calls off multiple towers, which is why they favor areas that are largely unconnected,” he said.
When asked about reports that unregistered or fraudulently registered SIM cards are still in use despite the Bank Verification Number (BVN) and the National Identification Number (NIN)–Subscriber Identity Module linkage policies, Tijani said the issue is technically complex and the reports are not fully verified.
“Whether it’s fact or not, I do not know where you’re getting that from, and I do not know who has evidence that there are people with unregistered SIMs,” he added.
The minister stated that the federal government is investing in telecom towers in underserved regions, upgrading the country’s communication satellites to improve coverage, and expanding fiber-optic networks to strengthen the country’s digital infrastructure.
“If our towers are not working, our satellites will work. Nigeria is the only country in West Africa with communication satellites, and we are bringing new satellites to upgrade their capabilities,” Tijani said.
He added that these initiatives aim to ensure better connectivity for Nigerians while closing loopholes that criminals exploit, thereby enhancing national security.
The minister’s comments come amid rising concerns over insecurity in several parts of the North, where banditry, kidnapping, and terrorism have escalated in recent years.
There are also reports of bandits flaunting ransom payments on social media platforms such as TikTok, raising alarm among authorities and the public
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