Telecom
CBN Proposes N100Bn Tax on Mobile Phone Users
Mobile phone users will be in for hard times if proposal by the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele to the federal government to introduce mobile phone call tax becomes a reality.
Emefiele has proposed an alternative to source of revenue for the government, and it is a telecoms tax for phone call conversations above 3 minutes.
He also suggested that the federal government introduce a tax on properties.
The Governor, who spoke at the 2016 Annual Bankers’ Dinner organised by the Chartered Institute of Bankers of Nigeria (CIBN) over the weekend, in Lagos, said such tax, targeted at the middle, upper class and long phone call makers, can generate N100 billion annually into the federal government coffers.
Speaking on the theme: “Policy options for reversing Nigeria’s economic downturn” he said the country’s economy is currently facing a classical case of “stagflation” and although the 2016 budget is well on track to tackle it, there is need to boost revenue generation base though increased taxes.
He suggested that government could explore opportunities for more revenues to wriggle out of stagflation and recession by introducing a negligible telecom surcharge to be paid by initiator of a telephone call.
“There are several ways we can raise additional revenue to finance the increased expenditure that is needed to engender fast and sustainable growth in the economy. I think we can consider introducing a negligible telecom surcharge to be entirely borne by the initiator of a call. In order to protect the poor and vulnerable amongst us, we could structure it to only take effect after the third minute of talk. Some analyses have indicated that the government could earn about N100 billion per annum from this alone,” he stated.
Emefiele explained that the surcharge will mainly be borne by middle and upper class people since many poor people do not make calls for more than three minutes.
He explained that stagflation occurs when a country’s Gross Domestic Product (GDP) is falling or stagnant while unemployment and inflation are rising, all simultaneously.
“As recent data from the National Bureau of Statistics (NBS) indicate, Nigeria’s GDP growth decelerated by 0.36 per cent and 2.1 per cent in the first and second quarters of 2016, respectively. More also, the rate of price inflation for the months of September and October were 17.9 per cent and 18.3 per cent, respectively, while official statistics also indicate that the country’s unemployment rate increased to 12.1 per cent and 13.3 per cent during the first and second quarters,” he stated.
Emefiele said that stagflation is a difficult condition for policymakers to deal with, insisting that no single macroeconomic policy can address rising inflation and slow growth simultaneously, because fighting inflation may require implementing policies that might, in the short term, be inimical to economic growth, whereas expansionary policies to stimulate growth usually worsen inflation.
Still on taxes, the CBN boss said government could also consider introducing minimal property taxes across the country. “This not only raises money for the government but also could be a veritable weapon against corruption since it creates a database of who really owns homes in this country. Another option to consider would be to fully implement the 2003 Cabotage Act. This is Act stipulates that all cargoes and passengers in the inland and coastal waters be transported by ships and ferries built, owned, crewed and manned by Nigerians,” he said.
Emefiele explained that contrary to the requirement of this Act, there are several foreign-owned vessels providing shipping services locally. “Out of about 600 ships that operate within our waters, only about 60 of them are owned by Nigerians and are mostly idle, in violation of the Act. Industry sources suggest Nigeria may be losing as much as N2 trillion annually from this anomaly. In addition to raising revenue, a full implementation of the Act could also spur job creation, capacity building, and significant backward integration,” he said.
Speaking further, he said that exchange rate is simply a price that is determined by the forces of demand and supply.
He said that while the proposal may seem controversial, variants of this policy have proven to be highly effective in other climes and even here in Nigeria.
“For example, throughout the early days of South Korea’s economic renaissance, the government intermittently used excessively stiff tariffs, quantitative restrictions and prohibitive inland taxes to effectively ban many items with potential for high imports, and simultaneously, offered generous and subsidized loans to firms for export promotion causes. In fact, at some point, about 93 per cent of total imports into South Korea were subject to one or more such restrictions,” he said.
Emefiele admitted that interest rates are a veritable tool for curtailing inflation but with inflation at over 18 per cent, the regulator would be abjectly failing on one of its cardinal objectives if it cuts interest rates at this time. “Second, for those who say we need a rate cut to spur growth, we need to remind that high inflation is highly inimical to economic growth. Indeed, many empirical studies have estimated the threshold level at which inflation becomes significantly growth retarding to be 11 per cent for developing countries. With ours at 18.3 per cent, one must question the judgment of cutting interest rates at this time,” he said.
The CBN Governor insisted that interest rates reflect not just the cost of capital but also the cost of doing business, hence, the need to also look at interest rates from the perspective of the lender. “Given that most banks have to individually provide security, power, and other infrastructure, it is not surprising that some of these costs are passed on to customers in the form of high interest rates. Notwithstanding these facts, we will continue to use moral suasion to encourage commercial banks to be more considerate in interest charges on customers,” he stated.
Elon Musk, CEO of SpaceX and owner of X, on Sunday criticised his birth country’s government, claiming that Starlink is being denied an operating licence on the basis that he is not black.
In a series of posts on his X handle, the South Africa-born billionaire referenced ongoing regulatory hurdles tied to the country’s Broad-Based Black Economic Empowerment policies.
He claimed the post-apartheid rules require telecommunications licensees to have at least 30 per cent ownership by historically disadvantaged groups, primarily Black South Africans, women, and people with disabilities.
He wrote, “South Africa won’t allow Starlink to be licensed, even though I was born there, simply because I am not black!
“We were offered many times the opportunity to bribe our way to a license by pretending that a black guy runs Starlink SA, but I have refused to do so on principle.
“Racism should not be rewarded no matter to which race it is applied. Shame on the racist politicians in South Africa.
“They should be shown no respect whatsoever anywhere in the world and shunned for being unashamedly racists!”
The dispute centres on licensing requirements enforced by the Independent Communications Authority of South Africa.
Starlink has not formally received a licence and has argued that current telecom regulations do not fully recognise Equity Equivalent Investment Programmes, alternatives to direct ownership transfers that allow companies to invest in skills development, infrastructure, or community projects instead.
South African officials have, over the years, repeatedly dismissed claims of racism, citing other foreign investors operating in the country.
They argued that the company has not submitted a complete formal application compliant with existing rules.
“Sir, that’s not true and you know it! It’s got nothing to do with your skin colour. Starlink is welcome to operate in South Africa provided there’s compliance with local laws.
“This is a global international trade and investment principle. There are over 600 USA companies investing and operating in #SouthAfrica…all complying and thriving! @Microsoft just announced additional investments yesterday,” South Africa’s Head of Public Diplomacy, Clayson Monyela, said in March 2025, when Musk initially raised the allegation.
Replying again via X on Sunday, he wrote, “@elonmusk watching the more than 600 USA companies investing more in, complying with #SouthAfrican laws and thriving. Zero drama!!.”
Telecom
Digital Realty, IXPN Expand Peering Network with New Internet Exchange Point of Presence in Nigeria
Digital Realty, the world’s largest cloud and carrier-neutral data center platform, today announced the activation of a new internet exchange point of presence (PoP) for the Internet Exchange Point of Nigeria (IXPN) at its newly commissioned data center in Ibeju-Lekki, Lagos.
This development marks a significant milestone in strengthening Nigeria’s digital infrastructure and elevating West Africa’s connectivity.
Building on IXPN’s existing PoP at Digital Realty’s campus located in Victoria Island, the newly activated PoP at the company’s Lekki data center extends IXPN’s reach, offering access from 12 data centers across Nigeria. IXPN is now uniquely available in all major data centers in Lagos, further positioning Lagos as a hub for local and regional interconnectivity.
Strategically located, Digital Realty’s Lekki data center serves as the landing point for the 2Africa subsea cable system, one of the world’s most expansive subsea cable projects, linking over 46 locations throughout Africa, Europe, the Middle East, and Asia.
This can deliver reliable, high-speed connectivity and can help enhance Nigeria’s role in the global digital economy. With the opening of Digital Realty’s Lekki data center alongside its campus in Victoria Island, Digital Realty became the first carrier-neutral data center provider in Lagos to operate two campuses, offering enhanced resilience and disaster recovery options for the industry.
With improved access to IXPN at the Digital Realty’s Lekki campus, networks and service providers can benefit from expanded, resilient public peering options. These enhancements can reduce latency, improve efficiency, support robust data exchange for content providers and cloud platforms, and enable enterprises to meet growing demands both locally and internationally.
This activation at our Lekki campus represents a deepening of Digital Realty commitment to connecting the local and regional digital economy to global networks,” said Ike Nnamani, Managing Director, Digital Realty in Nigeria. “By integrating IXPN’s exchange point, we are delivering resilient peering that enables lower latency and can increase operational efficiency for our customers.”
For IXPN, the move supports its expanding community of over 130 peering members – spanning ISPs, global content, and cloud operators – delivering greater resilience and more efficient local internet traffic exchange.
“Expanding IXPN to Digital Realty’s Lekki campus is a significant step in our journey to enhance connectivity across Nigeria,” said Muhammed Rudman, CEO, IXPN. “Our members are expected to benefit from faster, low-latency pathways, allowing broader digital inclusion and fueling Nigeria’s digital economy,” Rudman continued.
IXPN continues to play a pivotal role in localising internet traffic, a key factor in performance improvements and cost reductions. Peak domestic internet traffic at IXPN surpassed 1 terabit per second (Tbps) in April 2025 and grew to over 2 Tbps by March 2026, demonstrating IXPN’s significant role in local traffic exchange. Industry data shows that keeping traffic local reduces latency, boosts connectivity speeds, and delivers substantial annual savings for ISPs and content providers.
Telecom
Digital Encode Sponsors PAFON 3.0 as CVO Prof. Adewale Set to Deliver Keynote on Cybersecurity and Trust
Digital Encode Limited has emerged the lead sponsor of the upcoming third edition of the forum (PAFON 3.0), the organisers have announced.
PAFON 3.0
PAFON 3.0 is scheduled to take place on Friday, April 24, 2026, at the Oriental Hotel, Lekki Road, Lagos, from 9:00 AM to 1:00 PM.
Themed “Fair Digital Payments as a Catalyst for Deepening Financial Inclusion in Nigeria,” PAFON 3.0 serves as a strategic platform for senior executives from banks, fintechs, regulatory agencies, and technology innovators to address the evolving digital payment landscape.
As Nigeria transitions toward a cash-light economy, the forum will focus on critical pillars of sustainability, including transparency, pricing integrity, and system resilience.
Bridging Cybersecurity and Financial Inclusion
Professor Adewale Peter Obadare, the Founder/chief visionary officer of Digital Encode will deliver a cybersecurity-focused keynote address that connects trust, resilience, fraud prevention, and consumer protection to financial inclusion.
His session will provide a specialized perspective on how information security serves as the bedrock of financial inclusion; exploring the vital links between building infrastructure that consumers can rely on, protecting the ecosystem to allow inclusion to scale, and ensuring equitable and secure access for all Nigerians.
Prof. Obadare is arguably the most Credentialed PAN-African Digital Trust Leader, CyberSecurity Strategist, GRC Thought Leader & Global Technopreneur.
He is a seasoned Multi-Award Cybersecurity & GRC expert with over 58 (Fifty-Eight) international professional certifications to his credit, Master of Science in Cybersecurity, Liverpool Unversity, UK, was awarded Honorarary Doctorate Degree in Cybersecurity from Trinity International University of Ambassadors Atlanta Georgia, United State of America and First Professor of Practice – Cybersecurity at Miva Open University, Abuja, Nigeria.
Prof. Obadare is a well-recognized subject matter expert with numerous successful engagements to his credit in Africa and the world. His skills and experience spans Data Privacy, Data Protection, CyberSecurity, Information Security, Vulnerability Management, Penetration Testing, Computer Forensics, Business Continuity, I T Governance, Risk Management and Compliance.
He is a Cybersecurity Advisory Board Member for Lagos State Government, a Platinum Team Member of Open-Source Security Testing Methodology Manual (OSSTMM), as well as a lifetime member of the Open Worldwide Application Security Project (OWASP). He is an alumnus of FATE Foundation and US Department of State Exchange program.
He is also a distinguished alumnus of executive education at Harvard Business School, Harvard School of Government, MIT Sloan School of Management, MIT Professional Education and Oxford University – Said Business School.
“Without trust in the security of digital payments, inclusion cannot scale. And we are happy to welcome Digital Encode as our Lead Sponsor this year. With what the company stands for and the personality of the CVO on a global scale, we have no doubt that attendees at this year’s PAFON will go home with lots of insights.”
“The theme for PAFON 3.0 was carefully selected because if digital payments are affordable, transparent, accessible, and trustworthy, more Nigerians, especially the underserved, will participate in the financial system”, Mr. Chike Onwuegbuchi, the co-convener of Payments Forum Nigeria, noted, highlighting Digital Encode distinguished leadership in Nigeria’s cybersecurity ecosystem.
Other Confirmed speakers: Dr. Jameelah Sharrieff-Ayedun, Vice President, Fintech Association of Nigeria (FintechNGR) & CEO, Credit Registry; Uche Uzoebo, MD/CEO, Shared Agent Network Expansion Facilities (SANEF Limited): Special Guest of Honour; Mojeed Abayomi Agboola, National President, Financial Inclusion Agents Multipurpose Cooperative Society (FIAMCS); Dr. Obioha Otti, National President, Association of Mobile Money and Bank Agents in Nigeria (AMMBAN); Chukwuemeka Enoch, Founder, Lagos Blockchain Week, and Sarafadeen Fasasi, National President, Association of Financial Inclusion Agents of Nigeria (AFiAN), amongst others.
The forum will feature speakers from across the financial spectrum, including mobile money operators, payment processors, and development institutions, to shape policy dialogue and industry standards.
PAFON is a premier industry gathering that aligns brand positioning with trust and innovation in Nigeria’s digital payments ecosystem. It provides a unique space for thought leadership, regulatory engagement, and market expansion within the payment infrastructure sector.
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