Telecom
Call Tariffs to Increase as FG Slams 5 Per cent Duty on Recharge Cards

President Muhammadu Buhari, has reportedly approved the collection of five per cent excise duty on telephone recharge cards and vouchers.
This is coming as telecom operators under the aegis of Association of Licensed Telecom Operators of Nigeria (ALTON), on Wednesday asked for upward reviews in voice calls, short message services (SMS) and data costs.
Now, the new five per cent excise duty, is part of new items on the list of goods liable for excise duty on the Finance Act in the country.
Excise duty is a levy charged at the time of manufacturing. It is also a form of indirect tax on the sale or consumption of certain goods, products, services or activities such as tobacco, alcohol, narcotics, gambling etc., mainly to discourage their use and consumption. Nigeria’s Finance Act has extended the list to include beverages, non-alcoholic drinks etc.
According to a circular signed by Zainab Ahmed, minister of finance, budget and national planning, directed the Nigerian Customs to create a tariff line for the collection of the excise on mobile telephones, electricity meters (components) and set up boxes at five per cent.
It is understood that the federal government is expected to raise at least N150 billion from the duty while customs will pocket about 10 billion, a 7 per cent collection fee.
The circular conforms with another list of excisable items by customs to include telephone recharge cards and vouchers at five per cent.
The collection was part of new items on the 2020 Finance Act signed by President Buhari.
Although no rate was not stated, it is clear that the president might have okayed the collection of the duty at five per cent as empowered to do by the Act.
Section 21 (1) of the Act describes goods liable to excise duty as “Goods imported and those manufactured in Nigeria and specified in the first schedule of this Act shall be charged with duties of excise at the rate specified under the duty column in the Schedule.
Subsection 2 further added that “telecommunication services provided in Nigeria shall be charged with duties of excise at the rate specified under the duty column in the Schedule as the President may by Order prescribe pursuant to section 13 of this Act”.
In the current (2021) finance act, a new section was inserted to include “excise duty on non-alcoholic, carbonated and sweetened beverages shall be charged at a specific rate of N10 per litre”.
The new 5 per cent levy on recharge cards will increase call costs and add to other taxes levied on telcos operating in the country. Some of these levies include the right of way charges, National Information Technology Development Fund Levy, National Cybersecurity Fund, and Annual Operating Levy in addition to existing statutory taxes like tertiary education tax, companies income tax, and value-added tax.
Recall that ALTON had earlier asked for upward reviews in voice calls, short message services (SMS) and data costs.
ALTON had made the request in a letter addressed to the Nigerian Communications Commission (NCC), citing the rising cost of running business as reason.
According to ALTON, the proposed upward review of the price of calls will increase from N6.4 to N8.95, while the price cap of SMS will increase from N4 to N5.61.
Telecom
PAT Taps Osi as CEO

Pan African Towers (PAT), a Nigerian infrastructure provider serving 9mobile and Spectranet, has appointed Echezona Osi as chief executive officer.

Echezona Osi
Adefolarin Ogunsanya, company’s, board chairman, explained in a statement that Osi would succeed Oladipo Badru, whose tenure lasted nine months in acting CEO position. Osi has more than 28 years of experience in the telecommunications sector across various regions of Africa.
Prior to his appointment as CEO, he had served as the head of network deployment at Airtel Nigeria, operations director and chief technical information officer at MIC Tanzania, chief technology officer roles at IPT PowerTech Nigeria, Rhino Niger Networks and Biswal Nigeria.
He obtained a degree in electrical/ electronic engineering from the University of Benin and a postgraduate diploma in data science and business analytics from the University of Texas.
Telecom
NCC Introduces N10m Licence Fee for Bulk SMS Service

Companies sending bulk international text messages, also known as Application-to-Person (A2P) messages, will now have apply for a licence that costs N10 million.
This is part of new rules introduced by the Nigerian Communications Commission (NCC) aimed at cleaning up the system, fighting fraud, blocking spam messages and stopping money from leaving the country unchecked.
These A2P messages are the kind customers get from banks, online stores, hospitals and political campaigns, automated texts sent from apps to their phones.
According to the commission, the bulk international text message system has been poorly regulated, allowing misuse and invasion of privacy.
“The International SMS Service Ecosystem in Nigeria has not been fully brought under regulatory control. It has been observed that the excessive use of the Short Message Service has led to fraud, spam and illegal activities,” the NCC said.
The regulator warned that without action, the problem would worsen as more people use mobile phones and digital services.
To solve this, the NCC is creating a central platform, or gateway, through which all international bulk text messages must pass through.
The agency said this would help to monitor messages in real time, ensure proper fees are paid, and make sure the money stays in Nigeria where it can contribute to the economy.
As part of the incoming change, service providers must follow strict rules, including strong data protection, spam filters, and message encryption.
Also, they must also work with local mobile networks and make sure all messages come from a verified sender
The NCC warned that any message without a proper sender ID will be blocked and not delivered to users.
To protect users from unwanted texts, the new rules say companies must get clear permission before sending any promotional content.
The rule also says people must also be able to choose whether they want to receive such messages or not.
Companies are now required to keep records of all messages for at least six months and must clearly state all charges involved.
The NCC said fees for help requests, cancellations, or service info must be transparent and not include hidden charges.
The commission will issue licences to several providers to encourage healthy competition but may limit new licences if needed.
Only companies that show they can stop fraud and safely deliver messages will be allowed to operate. They must also regularly report their message traffic and finances to the NCC.
It warned that any company that breaks the rules risks getting fined, suspended, or having its licence revoked.
Offences like charging illegal tariffs, ignoring security rules, or avoiding taxes will be punished, the NCC said.
The commission added that the new rules follow the Nigerian Data Protection Act 2023 and support the federal government’s goal of strengthening cybersecurity and controlling Nigeria’s digital space.
The framework will also be reviewed from time to time to keep up with new technology and market trends.
Telecom
MTN Nigeria Targets $1Bn Cloud Market with Largest Modular Data Centre

MTN Nigeria has launched what it claims is the country’s largest prefabricated modular data centre, marking a bold push into the country’s fast-growing cloud market and taking aim at global giants such as Amazon Web Services, Microsoft Azure and Google Cloud.

Karl Toriola, CEO, MTN Nigeria.
The shift comes as demand for cloud services in Nigeria soars — driven by the uptake of mobile apps, fintech tools and e-learning platforms — while foreign providers have become costlier in the wake of the naira’s sharp devaluation.
“This is one of the biggest data centres in West Africa and probably one of the biggest in Africa,” said Karl Toriola, CEO, MTN Nigeria.
He described the new Tier III-certified facility, with locally hosted cloud services, as “transformative for the technology ecosystem in Nigeria and very supportive of the federal government’s agenda”.
MTN Nigeria, the country’s largest telecoms provider, has so far invested $120m in the first phase, delivering an IT load of 4.5MW. A second phase, set to double capacity to 9MW, is budgeted at $135m.
“We already have data centres that are running our existing capacities,” Toriola said.
“We will go to 9MW in short order, possibly 14MW, and we can expand even further.”
He said the facility would allow local hosting for tech developers, large enterprises including banks and oil companies, and government agencies — markets long dominated by foreign cloud providers.
“Multinational companies such as Netflix, Facebook and Instagram can also host a lot of their data here. That improves the quality of service and reduces the cost of storage,” he added.
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