Telecom

ATCON Visits Saraki, Warns of Dangers of ICT Tax Bill

Published

7 years ago

November 5, 2016

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Association of Telecommunications Companies of Nigeria (ATCON) has again warned that the proposed plan by the federal government to impose a special tax of nine per cent for the use of communication services would only succeed in worsening the prevailing high cost of doing business in the country.

The group during a visit to Senator Bukola Saraki, President of the Senate, asked the federal government to drop the plan to tax every phone call made, text message sent and data used by Nigerians.

According to ATCON, the bill potentially creates and raises the issue of double taxation since Value Added Tax (VAT) Act already imposes tax of five per cent on the supply of goods and services, calling for the suspension of the bill to allow for the rapid growth of the telecommunications sector in line with the Nigerian National Broadband Plan.

A member of the ATCON delegation told Nigeria CommunicationsWeek that the visit was part of the Association’s advocacy against the 9% Communication Services Tax Bill already considered for passage at the Upper Chamber.

“ATCON”, the source said, “has not shifted ground on its position against the Communication Services Tax Bill. As an industry, we are strictly against the moves by the Federal Government.

“During the meeting, the ATCON President presented our case to His Excellency, Dr. Bukola Saraki, saying, look the growth of Information and Communication Technology during the last few years has been phenomenal and tremendous with positive impact on every aspect of human life, however, the industry which is heavily taxed already would prefer this Bill is not passed.

“There is no doubt that the emergence and liberalization of this sector has also impacted positively on revenue accruable to government , employment generation (both Direct and Indirect), Foreign Direct Investment (in tens of billions of dollars) and a host of other positives which time would not permit me to mention. What the industry needs now are more palliative and not more tax. It’s true government is looking for measures to generate more revenue, but this tax is not a better option.”

Before now, ATCON’s position has been that they recognize that, generally, taxation is one of the many ways through which governments all over the world generate income to be able to discharge their duties to the citizens, “Government at all levels make collections of taxes mandatory through enactment of policies. The contributions of the Communications sector was meagre some fifteen years ago but through the concerted efforts of some patriotic and dedicated experts in the telecommunications sector under the aegis of the Association of Telecommunications Companies of Nigeria who advocated for the liberalization of the sector, the sector is now contributing revenue of well over 10% to the nation’s GDP.

“ATCON believes any calculated actions that have potentials to stifle further contribution of the telecoms industry to our GDP must be avoided by all tiers of government in Nigeria as the perceived benefits of imposing a Communication Service tax on telecoms subscribers has the potential to erode if not destroy the achievements that have been made since the telecoms sector was liberated. We therefore advise both the House of Representatives and the Senate (the Legislative arm of government) to discontinue with the bill.

Also recently, Telecommunications groups which include, GSMA the industry association representing mobile operators worldwide; ALTON, representing the mobile operators of Nigeria; ATCON, the Association of Telecommunications Companies of Nigeria and NATCOMS, the National Association of Telecommunications Subscribers, expressed their grave concerns regarding the proposal, which is under consideration by the National Assembly.

The bill seeks to establish a 9% Communication Service Tax to be levied on charges payable by a user of an electronic communication service (i.e., SMS, voice calls, MMS, data usage) supplied by service providers.

According to the group, ‘If introduced, such tax will result in an increase in prices for consumers, which will have adverse impacts on the adoption of mobile services and industry investment, as well as counter-productive to the longer term national digital strategy objectives set by the government of Nigeria.

They further stated that: “the socio-economic impact of mobile penetration is now widely recognised. According to research conducted by the World Bank, a 10% increase in mobile broadband penetration in low to middle income countries leads to a 1.38% increase in GDP growth. Today, 83 million people in Nigeria have access to mobile services. With over half of the population without a mobile connection, affordability remains a key challenge to connect the unconnected, who are typically lower income population groups.

Further taxation on electronic communication services will hit lower income consumers the most, who are already struggling due to the adverse economic situation and increased price pressure and for whom affordable access to information and communication technology is critical to their social and economic inclusion. Moreover, this will result in a double taxation for consumers who already pay Value Added Taxes on telecommunications services.”

They added that in 2014, the mobile ecosystem contributed USD8.3 billion to the Nigerian economy. This they said is set to increase as penetration of voice and broadband services grows.

But, in a recent public forum in Lagos the federal government through Barrister Adebayo Shittu expressed hopes to generate more than N20bn monthly from communication service tax.

The Minister said, “We all know that the introduction of new taxes without harmonising existing ones will put pressure on the Nigerian tax system, making it unattractive to investors. “This may also be counter productive in the long run for our target broadband penetration.

“My focus on any tax regime will be to align any process that will stimulate the economy and also ensure that tax system is sufficient by widening the tax net and creating an effective framework for tax compliance to protect the poor and vulnerable in the society.”

Efforts to reach the ATCON President proved abortive however the executive secretary confirmed the visit, but said that a comprehensive report shall be made available later.

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Telecom

Airtel Nigeria Leads Telecom Market Surge

Published

2 days ago

April 27, 2024

Chike Onwuegbuchi

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In a recent revelation from the Nigerian Communications Commission (NCC), Airtel Nigeria has emerged as a standout performer in the country’s telecommunications sector, marking significant gains in market share over the past year.

According to the NCC data, by the end of March 2024, Airtel Nigeria has grown its market share over the last year into a remarkable 29%, solidifying its position as a leading telecom provider in the region.

In stark contrast, other mobile network operators such as MTN and 9mobile have faced considerable setbacks, with MTN witnessing a notable 3.19% decline in market share and 9mobile experiencing a 0.5% decrease.

Even Glo, a prominent player in the market, saw a decline, albeit less pronounced, with a 0.58% drop in its share of internet subscribers.

Airtel Nigeria’s success story goes beyond market share gains. The company has also witnessed a substantial surge in its share of internet subscribers, boasting an impressive 165% basis points increase.

This surge correlates with the launch of Airtel 5G, which the company began rolling out in June 2023 and underscores the telco’s continued push to grow its customer base nationwide.

Airtel Nigeria’s ascendancy in the telecom market comes at a pivotal moment when mobile network operators face challenges of rising operations cost and exchange rates volatility. The company’s recent results solidify its position as a frontrunner in Nigeria’s telecom landscape.

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Telecom

#BuildWithAI Hackathon: Google Developer Groups Lagos Partners SeerBit, GoMyCode

Published

2 days ago

April 27, 2024

Ugo Onwuaso

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Google Developer Groups Lagos (GDGLagos) has announced a regional edition of the global #BuildWithAI hackathon, in partnership with SeerBit, Africa’s most trusted payment solutions provider and GOMYCODE.

seerbit

This hackathon, taking place on Saturday, April 27th and Wednesday, May 1st, 2024, will empower participants to explore Google’s AI tools, Gemini and Vertex AI and develop innovative solutions for real-world challenges.

“We are excited to partner with Seerbit and GoMyCode to bring the #BuildWithAI hackathon to Lagos,” says Co-Organizer, GDGLagos, Femi Taiwo. “This event fosters innovation and empowers individuals to use AI to solve real-world problems. We encourage everyone interested in AI to join us for this inspiring event.”

Founder & CEO of SeerBit, Omoniyi Kolade articulated the profound impact of this collaboration, stating, “At SeerBit, we are committed to pioneering innovative solutions that enhance financial security and foster trust in digital transactions. Collaborating with GDG Lagos amplifies our quest to combat fraud effectively. Together, we aim to empower developers to harness the power of technology for the greater good, ultimately benefiting society as a whole.”

“At GOMYCODE, we are committed to unlocking the potential of innovators across Nigeria and beyond through accessible technology education. The ‘Build With AI’ hackathon with Google Developer Groups Lagos offers a hands-on chance for innovators to use AI for real-world solutions. We’re excited to create a space where technology meets creativity, empowering participants to actively shape the future,” Country Head, GOMYCODE Nigeria, Babatunde Olaifa said.

The #BuildWithAI hackathon aligns with Google’s global initiative to democratize access to AI technology. This regional event in Lagos offers a unique opportunity for developers, data scientists, designers, students, and anyone curious about AI to:

Gain hands-on experience with Google’s cutting-edge AI tools, Gemini and Vertex AI.
Tackle real-world challenges across various sectors like sustainability, finance, education, healthcare, and social good.
Leverage SeerBit’s expertise in digital payments to create solutions with tangible applications.
Develop in-demand skills with the support of GoMyCode’s training resources.
Collaborate in teams and network with fellow AI enthusiasts.
Compete for a chance to win a cash prize of NGN 1,000,000, office space to further develop their winning solution, and the opportunity to partner with SeerBit, with NGN 500,000 and NGN 250,000 for second and third place respectively.

The GDGLagos #BuildWithAI hackathon serves as a springboard for the global Google AI Hackathon, taking place online. This international event focuses on pushing the boundaries of what Generative AI apps can do with Gemini. Participants in the Lagos event are highly encouraged to consider entering the global competition as well.

GDGLagos will provide ongoing support and guidance to the regional winner as they prepare to compete on the global stage. This includes access to mentorship, resources and technical expertise to help them refine their solution and showcase their talent to a worldwide audience.

Startup founders, experienced developers, data scientists and expert resources and designated mentors will be available during the hackathon to provide guidance, refine ideas, answer questions and offer technical support to participants. This ensures they receive the necessary guidance to tackle the challenges and bring their innovative ideas to life.

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Telecom

Airtel Boosts NIPR Public Relations Week with Onsite Unlimited Data Connection

Published

3 days ago

April 26, 2024

Chike Onwuegbuchi

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Telecommunications service provider, Airtel Nigeria has collaborated with the Nigeria Institute of Public Relations (NIPR) to provide with unlimited internet access at the institute’s inaugural edition of the Nigeria Public Relations Week.

The trailblazing event themed ‘Leveraging Public Relations as a Critical Asset for Nigeria’s Economic and Reputation Renaissance’ is set to run from Monday, April 22nd to Friday, April 26th, 2024, and will welcome thousands of delegates across Nigeria to the prestigious June 12 Cultural Centre, nestled in the heart of Abeokuta, the Ogun State capital.

Speaking on the strategic collaboration, Femi Adeniran, Director, Corporate Communications and CSR, Airtel Nigeria, expressed enthusiasm about the partnership, stating, “Airtel is proud to support the Nigeria Institute of Public Relations in its endeavor to advance the field of public relations.

“The relevance of public relations practice in Nigeria cannot be overstated, as it plays a vital role in shaping perceptions, managing reputations, and influencing public opinion. Hence, our support is a demonstration of our commitment to empowering individuals and organizations with innovative solutions that drive progress and create an enabling society.”

According to NIPR, through the PRWeek Organizing \Committee Chairman, Mr Yomi Badejo Okusanya, the NPRW will gather over 2,000 experts in the fields of economics, PR, and nation-building to discuss strategies for effectively communicating government policies and initiatives to the public.

Other activities at the NPRW will include conferences, the annual general meeting, workshops, induction of new members, breakout sessions with students as well as traditional rulers and a tour of some legacy projects in Ogun state.

With Airtel’s provision of onsite unlimited data connection, attendees and participants can enjoy unparalleled access to online resources, real-time updates, and interactive engagements throughout the duration of the event. This will significantly support the exchange of ideas, foster networking opportunities, and elevate the overall experience for all stakeholders involved.

Airtel Nigeria remains committed to offering unwavering support for initiatives aimed at driving innovation, collaboration, and nation-building.

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