Connect with us

Telecom

Telcos Wax Worriedly over Heavy Taxes, Levies

Published

on

Gbenga Adebayo
Kindly share this post

Telecommunications operators in Nigeria now pay over 40 different taxes and levies to various agencies of governments at federal, state and local government levels.

 

These taxes, according to them, are slowing down their expansion drive across the country, while also limiting digital inclusion and mobile penetration, as the vicious cycle continues.

 

Speaking during the presentation of a report on, Tax and Enabling Business Environment in Telecoms sector, at an event in Lagos, operators said the multiplicity of taxes and levies in the industry has a direct negative impact on the affordability of telecommunications services.

 

They added that the matter may get worse for both operators and consumers, should the planned nine per cent Communications Service Tax (CST) currently undergoing scrutiny at the National Assembly eventually scaled through and become a law.

 

The operators charged the government to target individuals and businesses that are evading tax, rather than put the tax burden on the telcos alone.

 

According to them, the balance lies in a landscape where taxes are fair, harmonised, clear, and aligned with the objective of advancing connectivity.

 

The report noted that the multiplicity of taxes directly impacts the industry’s ability to innovate; improve mobile and data network quality, reduce prices, drive mobile penetration, and deploy infrastructure around the remotest parts of the country. It stressed that it also directly impacts the ability of telecoms operators to support nascent businesses and industries, further stunting economic growth.

 

“And when the number of taxes imposed continue to rise even further, as with the recent introduction of the Police Trust Fund Levy, Communications Service Tax, these costs are inevitably passed on to you, the consumer,” the report stated.

 

The report urged canvassed that the Taxes and Levies Act be revisited to keep retail prices optimal and ensure an enabling business environment.

 

Corroborating the report, Gbenga Adebayo, chairman, Association of Licensed Telecoms Companies of Nigeria (ALTON), said the issue of multiple taxes has been a recurrent decimal that needs Executive Order to address the situation.

 

According to him, the government is in the habit of imposing taxes that have no bearing with telecoms operations such as Parking tax, Effluent Discharge tax, Social Service levy, PAYE tax, Right of Way tax, Sewage tax, Environmental/Ecological tax, Hawking levy, Building Fitness levy, among many others.

Speaking on the implications of taxes on telecommunications, Adebayo said it would stifle economic growth. “Overtaxation has several consequences. Foremost, it necessarily limits Nigeria’s economic growth, because it directly limits telecoms operators’ expansion drive and thwarts sector investment and advancement.

 

“This then limits digital inclusion and mobile penetration. As some of these taxes are passed on to consumers, the vicious cycle continues, as mobile/data usage falls, the government tax net remains narrow and revenue targets are not met.”

 

Noting that telecoms need massive infrastructure to connect with individuals and businesses, he said: “Our major challenge stems from the activities of supposed land owners of infrastructure sites, states, and local governments. We have instances where state and local government authorities have physically invaded offices, locked up base stations, and employed other unwholesome tactics to enforce these taxes and levies.”

 

The report called for an urgent re-evaluation of Nigeria’s fiscal priorities fit for population explosion set to occur over the next two decades.

 

“The current fiscal landscape reflects an approach that emphasises short term unsustainable gain at the expense of long term sustainable growth. No nation has ever taxed itself into prosperity. Governments do need money. How often, and from whom they take it, are difficult political issues; but we must ask the questions that lead us on a path to envisioning a better Nigeria for us all.

 

“We must designate telecoms assets as critical national infrastructure, to safeguard the lifeblood of our nation from disruptive actions with rising insecurity and terrorist activity, our intelligence and emergency forces,” the report stated.


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Telecom

NCC, CBN Unveil Refund Framework for Failed Airtime, Data Transactions

Published

on

Kindly share this post

Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN) have finalized a consumer protection framework to swiftly resolve complaints from failed airtime and data purchases caused by network outages, system errors, or user mistakes.

NCC, CBN Unveil Refund Framework for Failed Airtime, Data Transactions

NCC, CBN

Developed after months of consultations with Mobile Network Operators (MNOs), Value Added Service (VAS) providers, Deposit Money Banks (DMBs), and other stakeholders, the framework responds to surging reports of debits without service delivery and prolonged resolution delays.

It unites telecom and financial sectors by pinpointing root causes—like debits without service credits—and enforces a Service Level Agreement (SLA) defining roles for all parties in transactions and refunds.

Key provisions include refunds within 30 seconds for debited but undelivered airtime or data (extendable to 24 hours for pending cases), mandatory SMS notifications on transaction status, and remedies for errors such as recharges to ported numbers, wrong purchases, or misdirected transactions.

NCC Consumer Affairs Director, Mrs. Freda Bruce-Bennett, highlighted a new Central Monitoring Dashboard, co-hosted by NCC and CBN, for real-time tracking of failures, culprits, refunds, and SLA violations.

“Failed top-ups are among the top three consumer complaints. True to our mandate, we prioritized a rapid solution,” she stated.

Bruce-Bennett thanked stakeholders, especially CBN leadership, noting that MNOs and banks have already refunded over N10 billion pending formal approval.

Implementation begins March 1, 2026, following regulator approvals and technical integrations by MNOs, VAS providers, and DMBs.


Kindly share this post
Continue Reading

Telecom

NASENI Launches Inter-Agency Innovation Competition for MDAs

Published

on

Kindly share this post

National Agency for Science and Engineering Infrastructure (NASENI) has announced the launch of an Inter-Agency Innovation Competition and Awards to stimulate creativity and technological advancement among Ministries, Departments and Agencies (MDAs) of the Federal Government.

NASENI Launches Inter-Agency Innovation Competition for MDAs

NASENI

In a statement issued on Wednesday in Abuja, NASENI said the initiative was designed to harness innovative ideas from public servants that can drive indigenous industrialization, job creation and national progress.

According to the agency, the competition will provide a platform for MDAs to propose solutions in critical sectors such as health, agriculture, education and infrastructure, leveraging science and technology to improve public service delivery and enhance the quality of life for Nigerians.

“The competition seeks to promote collaboration and creativity among MDAs while addressing pressing national challenges through innovation,” the statement said.

NASENI urged interested MDAs to submit their entries through its innovation portal at naseni.gov.ng/innovation.

The agency reiterated its statutory mission “to develop and maintain a dynamic infrastructure to drive Nigeria’s indigenous industrialization, job creation and national progress,” adding that the competition would further strengthen efforts to unlock the nation’s potential through science and technology.


Kindly share this post
Continue Reading

Telecom

Mandatory Biometric Verification for Starlink Users in Nigeria Begins

Published

on

Kindly share this post

Users of satellite internet service provider Starlink in Nigeria are being required to complete a biometric Know Your Customer (KYC) process as a precondition to continue enjoying their services, according to .biometricupdate.

Mandatory Biometric Verification for Starlink Users in Nigeria Begins

According to local reports, more than 66,000 Starlink subscribers in the country had a December 31 ultimatum from the Nigerian Communications Commission (NCC) to complete the biometric verification or have their connection discontinued.

The process essentially entails linking a Starlkink account with the subscriber’s national digital ID.

The NCC, which is Nigeria’s telecoms industry regulator, is said to have first issued the directive in August last year, setting a three-month deadline which was to elapse on November 19, TechCabal reports.

The body however later extended it to December 31 after consultations with industry stakeholders. The internet account-NIN linkage, the NCC said, is to enhance identity verification and strengthen security within the country’s telecoms space.

Just a few days to the December 31 deadline, Starlink’s Nigeria office sent an email to its subscribers reminding them of the KYC requirement, and warned that all those who fail to comply would be disconnected.

And that once disconnected, reconnection would depend on network capacity in the concerned area.

The service provider said in its email that the process takes less than two minutes and users can complete it by logging in to their account via an app.

One user, quoted by TechCabal, said one needs to upload their selfie biometrics, provide their national identification number (NIN) and then give their consent for the account to be linked to their ID information.

Starlink’s internet service is present in about 155 countries with nine million users, as of 2025. Its growth in Nigeria is said to be rapid, making it the second largest internet service provider in the country, according to The Traffic.

Biometric identification for Starlink subscribers could become a continent-wide trend given that some countries have expressed reservations in opening up their internet space to the company over security concerns.

There’ve been fears that jihadists in countries like Mali and Nigeria may have exploited Starlink terminals to coordinate terror operations, and cybersecurity experts have also warned of risks related to weak regulation, digital sovereignty and data breaches.

The requirement for Starlink internet users to have their accounts linked with the NIN is similar to the SIM-NIN linkage policy which the Nigerian government battled to implement for many years, with many deadline extensions.

In October last year, the NCC, which is was at the forefront of the policy implementation, announced that all active SIM cards across all network providers had complied with the directive which was issued in 2020.

The idea, the federal government argued, was to strengthen security and curb criminality such as kidnappings which are aided and abetted by improperly identified mobile phone numbers.


Kindly share this post
Continue Reading

Trending