The Association of Licensed Telecommunication Operators of Nigeria (ALTON), has urged Dr. Isa Ali Pantami, minister of communications to intervene on ease of doing business in the telecommunications sector.

ALTON states that access to basic communications services have transformed personal and business productivity, enhanced governance and facilitated security services delivery in the country.

In a letter to the minister signed by Engr. Gbenga Adebayo, chairman of ALTON, the association said the Information and Communications Technology (ICT) has a direct impact on the performance of Government at all levels.

“The ICT Sector accounts for approximately 10% of nominal GDP as against 2016 with a direct contribution of over N1.549trn to the economy.  Our sector consistently accounted for over 30% of Nigerian Foreign Direct Investment since its deregulation in year 2001. It is pertinent to state that the ICT Sector has created over 20,000 direct and 1.5 million indirect jobs since its deregulation in 2001.

“Despite the above milestones, it is of great concern to stakeholders that the ICT Sector is still operating below its potentials, as it is faced with fundamental challenges militating against network enhancement and development as well as inadequate infrastructure to support broadband roll out.

“Specifically, the provision of first class telecoms service in the Federal Capital Territory (FCT), Abuja has been hampered by the refusal of the Federal Capital Development Authority (FCDA) to grant permits to our members to build infrastructure.  Despite concerted engagement, FCDA has maintained that due to the need to maintain the Abuja Master Plan, it will not grant approval to our members to build new sites in the Federal Capital Territory, Abuja.

ALTON noted that without adequate infrastructure, the provision of qualitative telecommunications services cannot be guaranteed. “We therefore invite you to use your good office to liaise with the FCDA to identify suitable locations for new sites build by our members to ensure the provision of qualitative telecoms service in FCT and environs.

“We require more base stations, more resilient infrastructure and other elements to support stable telecom operations. However, we are faced with a number of issues for which we require intervention of Government at the highest level:

The Amended Taxes & Levies Order of 2015

ALTON said they concerned that the Amended Taxes & Levies Order, 2015 engendered the institution of multiplicity of taxes across different tiers of Government.  The Amended Order failed to fix the taxable rate resulting in the imposition of arbitrary levies and charges at the State Government levels.

“The industry is also burdened with enactment of laws at the State Government levels to legitimate spurious levies and charges on our members which negates the ease of doing business in Nigeria.

“Specifically, item 3 (b) of the Amended Schedule to the Taxes and Levies (Approved List for Collection) Act introduced new levies and taxes under items 12 – 25. Most of these taxes and levies were hitherto contested by our members on the grounds that they were not applicable to telecommunications operations justified by the previous Taxes and Levies (Approved List for Collection) Act 1998.

“It is disturbing that the entire instrument has given the State Governments authorization to coerce and disrupt the operations of our members in order to compel the payment of sundry levies, charges and taxes.  Rather than Amended Order addressing the issue of multiple taxation; it on the contrary increased the tax burden of our members and adversely impacted the ease of doing businesses in Nigeria”.

Implications of Multiple Taxation on Telecom Operators

The Association noted with dismay the its members have continue to record incidences of sabotage, outright vandalisation and arbitrary site closure in across the federation intended to coerce and exert pressure to compel the payment of multiple and discriminatory taxes and levies targeted at telecom facilities for the purpose of revenue generation.

Some examples of such taxes according to ALTON are:

1. Ecology Tax for gaseous emission.
2. Sewage, Sanitation and public convenience levy

iii. Sanitation and refuse effluent tax

1. Business premises tax for base stations situated in farm lands
2. Tenements rates charged per base station in some states is far higher than rates per square metre charged by the same State for residential and commercial buildings when the infrastructure occupies the same land?
3. Fumigation Levies: This is to bring to the notice of His Excellency that some States demand for the payment of fumigation charges of Base Station in the bush.

These are few examples of the nature of taxes that are alien to our operations but aimed at telecom operators.

3. Telecoms services as critical national security and economic infrastructure:

“Our industry supports many other economic sectors of the economy. We are also the first layer of critical infrastructure for socio economic development and security. It is pertinent to state that unless telecoms facilities have first level of protection by Government, it will be difficult to provide uninterrupted services to the citizenry”.

ALTON however requested for an Executive Order to be issued designating “Telecom Infrastructure as Critical National Security and Economic Infrastructure” as prescribed in the Cybercrime Act, 2015.

In view of the foregoing, ALTON urged the minister working with the Minister of Finance to review the Amended Taxes and Levies Order 2015, which is adjudged to be inimical to the normal operations of telecommunication operations.