Telecom
ALTON Seeks Minister’s Intervention on Ease of Doing Business in Telecom Sector
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:
- Ecology Tax for gaseous emission.
- Sewage, Sanitation and public convenience levy
iii. Sanitation and refuse effluent tax
- Business premises tax for base stations situated in farm lands
- 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?
- 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.
- 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.
Dimension Data has said that the proceeds from its Series 1 corporate bond, will support the expansion of the company’s fibre infrastructure to meet Nigeria’s growing demand for digital connectivity.
This followed the successful subscription of the corporate bond.
Recall that Dimension Data Limited said that it has completed the signing ceremony for the issuance of N4.05 billion (approximately US$2.9 million).
This sum marks the first tranche of a N20 billion (US$14.7 million) bond programme announced earlier this year.
The bond programme was raised under Dimension Data SPV Funding Plc, following approval from the Securities and Exchange Commission (SEC) of Nigeria.
The company says the proceeds will support the expansion of the company’s fibre infrastructure to meet Nigeria’s growing demand for digital connectivity.
Speaking at the ceremony, Olugbenga Olabiyi, managing director of Dimension Data Limited, said the investment reflects the company’s long-term commitment to strengthening Nigeria’s digital economy.
The planned investments will fund the continued expansion of Dimension Data’s fibre network, supporting increasing demand from financial institutions, fintechs, enterprise customers and other technology-driven sectors.
Founded in 1983 and headquartered in Johannesburg, the company has grown its footprint across the Middle East and Africa.
Today Dimension Data is a member of the NTT Ltd Group, one of the world’s leading technology companies.
As cloud adoption, digital financial services and data-intensive applications continue to grow, the company believes resilient fibre infrastructure will remain a critical enabler of Nigeria’s digital economy.
The Federal Government has announced that work will commence within weeks on a 90,000-kilometre fibre optic network expected to connect every state, local government area and ward in Nigeria, marking what officials describe as one of the country’s most ambitious digital infrastructure projects.
Dr Bosun Tijani, Minister of Communications, Innovation and Digital Economy, disclosed this on Tuesday after briefing President Bola Tinubu at the State House, Abuja, on the progress of three flagship digital transformation initiatives being implemented by his ministry.
According to the minister, all resource mobilisation and contractual processes for the nationwide fibre project have been completed, paving the way for physical deployment.
“We’re now at the point where, in a few weeks’ time, we should start to lay those fibre, so people will start seeing us around the country deploying the fibre. This is going to transform Nigeria for good,” Tijani said.
He explained that the project would deliver fibre optic infrastructure to every geopolitical zone, state, local government area and ward, significantly expanding broadband access and improving the quality of internet connectivity across the country.
“This is a project where every state, every geopolitical zone, every local government and every ward in this country will be covered with fibre optic cables, which will transform the quality of connectivity,” he added.
Bosun Tijani attributed the progress in the digital economy to a series of reforms approved by President Tinubu, including the designation of digital infrastructure as Critical National Infrastructure, tariff adjustments and tax harmonisation measures sought by industry operators.
“I think our sector has been extremely fortunate. Mr. President has given us quite a number of things that the sector has been demanding for a long time. Whether it’s the Critical National Infrastructure designation for all digital infrastructure, the slight adjustment in tariff, or the tax harmonisation, these are reforms the industry has long requested.
“I think it’s probably the sector that is most appreciative of this government because when we came in, the sector was contributing between 16 and 18 per cent to our GDP, but today it is tracking close to 21 per cent. That represents significant growth,” he said.
The minister noted that the reforms had also improved the financial performance of major operators in the telecommunications sector.
On efforts to bridge the digital divide, Tijani disclosed that the government would begin deploying about 3,700 telecommunications towers from October to provide network coverage for more than 20 million Nigerians currently living in underserved communities without access to telecom services.
He said the President had approved the project after months of capital mobilisation and planning.
“Today we’re at a point where, before the end of the year, we’ll also start to deploy close to 3,700 towers. It’s taken a lot to put this project together and raise the required capital, but we are now ready to begin deployment around October,” he said.
The minister also announced that Nigeria would officially launch an alphanumeric postcode system on October 1, a move he said would place the country among a select group of nations operating an advanced digital addressing system.
“Nigeria will be amongst maybe 10 or 15 countries in the world with an alphanumeric postcode. It’s the latest design in postcode systems, where we can identify every property in this country. We’re hoping to launch that on the 1st of October,” he said.
Tijani explained that the new system would assign a unique address to every property nationwide, enhancing logistics, accelerating e-commerce, improving emergency response and strengthening public service delivery.
“Inability to locate places comes at a cost. You can imagine what this will do for e-commerce. It means goods can now be delivered in record time,” he said.
He added that integrating the postcode system with existing government identity databases would improve security and make public services more efficient.
“Our alphanumeric postcode is unique because it allows us to assign a unique address to every property. In many countries, such as the UK, postcodes cover clusters of buildings. What we are introducing will uniquely identify every building, and that will be a game changer for Nigeria in terms of security, commerce and public service delivery,” the minister stated.
Telecom
Treepz Partners with CMS T&M to Digitize Public Transportation for Millions of Lagos Commuters
Treepz has officially announced a strategic partnership with CMS Taxi & Motor Nigeria Limited (CMS T&M) to modernize public transportation through digital technology to ensure cashless, transparent and more efficient commuting for passengers across CMS – Ajah routes.
The partnership brings together Treepz’s transportation technology and CMS T&M’s decades of experience moving passengers.
By integrating Treepz’s digital mobility platforms into CMS T&M’s operations, passengers will enjoy a faster, safer and completely cashless payment experience, while the transport operators gain access to real-time operational insights, digital ticketing and improved revenue management.
Speaking on the partnership, Johnny, Co-Founder of Treepz, said: “Public transportation is the backbone of every thriving city. Our mission has always been to use technology to make commuting easier and more efficient for everyone.
“Partnering with CMS T&M represents another important milestone in digitizing public transportation in Nigeria and empowering operators with the tools they need to scale sustainably.”
He added: “By replacing manual ticketing and cash collections with digital systems, we’re creating greater transparency for operators while delivering a better everyday experience for commuters.”
Also commenting on the partnership, Andrew Akhigbe, Managing Director of CMS T&M, said: “CMS T&M has proudly served Lagos commuters for decades, and innovation has always been essential to our growth.
“This partnership with Treepz allows us to embrace modern technology that improves operational efficiency, enhances accountability, and delivers a more convenient travel experience for our passengers.”
The collaboration reflects a shared commitment by both organizations to accelerate the digital transformation of Nigeria’s transport sector while improving the quality, reliability and accessibility of public mobility.
Treepz continues to expand its footprint across Africa by providing technology solutions that help transport operators digitize their services and deliver better customer experiences.
Beyond public bus operators, the company also powers mobility solutions for businesses, educational and religious institutions as well as governments seeking smarter transportation systems.
As Lagos continues to evolve into one of Africa’s largest smart cities, partnerships like this demonstrate how technology can reshape urban mobility, making transportation more connected, efficient and accessible for millions of commuters.
Visit website: https://www.cmstaxiandmotor.com
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