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FG Dangles Tax Holidays, Others on Infracos

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Eugene Juwah, EVC, NCC
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Infrastructure Companies (Infracos) soon to be licensed by the Nigerian Communications Commission (NCC) will, among other incentives, get tax holidays of between five and seven years to cushion their investments.

The InfraCos are expected to deploy critical Information and Communications Technology (ICT) infrastructure in the six geopolitical zones of the country.

Dr.  (Mrs.) Omobola Johnson, minister of Communications Technology, at forum as part of Nigeria’s drive for more investors into the blossoming ICT sector, at the ongoing ITU World 2014 in Doha, Qatar, said that based on the Open Access Model, which has been adopted for the licensing round, beneficiaries of the licenses shall among others, get tax holidays to encourage the Infracos to invest and guarantee adequate returns on investments.

Mr. Joseph Tegbe, principal partner of KPMG who are consultants to the soon to flag off licensing regime told the audience that the investors will be encouraged to veer into areas where many consider to be less commercially rewarding through subsidy, and grants may be given out to further their interest in such areas.

They will also be granted pioneer status as part of the incentives to boost their interest in investing in such areas or zones that may look unattractive.

Such Infracos will get such incentives that could be up to 30 per cent mark up on their capital expenditure (Capex) and employee tax holidays as well.

To qualify for these, Infracos will quantify their Capex and what it will take to rollout and how long it will take to break even.

Earlier, Dr Eugene Juwah, executive vice chairman, NCC,  told the audience including potential investors from Qatar National Bank, Global Operator, Ooredoo, Vodafone, Qatar and several diplomats that Nigeria had achieved 96 per cent teledensity with over 134 million active subscribers, and ICT contribution to national GDP of over 10 per cent.

Although over $32billion had been invested in this area so far, there is still a yawning gap in broadband penetration which stands at only six per cent at the moment. 75 million people connect to the Internet on narrow band.

He encouraged would be investors to take advantage of this gap because apart from government and high networth individuals who desire these services for high data transmission, the banks, education sector and electronic commerce operators need broadband to carry out their heavy data too.

The NCC, Juwah said, has adopted the Open Access Model to promote healthy competition, affordability and global best practices in our regulatory activities.

Dr Johson told the audience that since ICT is being qualified in this conference as the next oil and gas, “then Nigeria has struck a gold mine because ICT is work in progress.”

Mr Shuaibu Ahmed, Nigeria Ambassador to Qatar,  said the primary mandate here in Doha, Qatar, is to make Nigeria an investment destination because Qatar has an investment appetite of over $50bn and desires to divest its economy from over reliance on oil and gas.

Mr Mike Ikpoki, managing director of MTN Nigeria said MTN with 58million subscribers and over $15bn investment in the last 13 years is seen to have done well, but there is still more to do in the area of broadband.

MTN, Ikpoki said, “is an investment ambassador for Nigeria” because at the beginning, only few global players were interested in coming to Nigeria. But the story has changed now.

Mr Ibrahim Dikko, executive director at Etisalat Nigeria said in six years and over 20 million subscribers in its bargain, “Etisalat has never known a better investment profile than this because it is a network of choice for its very good quality of service because investors’ confidence is high in Nigeria”.


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Vitel Wireless Partners Fintechs to Expand Access to Services

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Vitel Wireless has entered into partnership with OPay Limited and Moniepoint Limited, to expand access to airtime and data services, particularly in Nigeria’s underserved and rural communities.

Vitel Wireless Partners Fintechs to Expand Access to Services

The collaboration enables millions of customers on both fintech platforms to seamlessly purchase Vitel Wireless airtime and data directly from their bank accounts and digital wallets, a move designed to simplify access and improve connectivity nationwide.

Chudi Nwabueze, chief operating officer, Vitel Wireless, said the initiative highlighted the growing convergence between financial services and telecommunications in Nigeria.

He noted that by leveraging the expansive reach and infrastructure of fintech platforms, the company is removing long-standing barriers to mobile access.

Nwabueze added that the move builds on Vitel’s existing partnerships with traditional financial institutions such as Fidelity Bank and Zenith Bank, extending its footprint into the rapidly growing fintech ecosystem.

“This integration allows users to conveniently top up airtime and purchase data bundles through familiar banking and wallet platforms, improving accessibility and overall user experience,” he said.

Also speaking,  Odera Ben-Chiobi, product marketing manager, Vitel Wireless, said the partnership aligns with the company’s mission to democratize access to mobile connectivity across Nigeria.

According to her, the collaboration will bring telecom services closer to millions of Nigerians, especially in areas where access has historically been limited.

She added that combining telecom services with digital financial platforms will also support broader financial inclusion efforts.

Vitel Wireless currently operates nationwide through a network-sharing agreement with MTN Nigeria, leveraging MTN’s infrastructure to deliver its services across the country.

The company noted that the partnership reflects a shared commitment to inclusive growth, with the potential to accelerate both financial inclusion and digital connectivity across Nigeria.

 

 


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Reps Claim NCC’s Weak Regulatory Oversight Responsible for Poor Telecom Services

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House of Representatives on Wednesday claimed that Nigerian Communications Commission’s (NCC)  weak regulatory oversight, was responsible for the country’s ongoing poor telecom service quality.

Reps Claim NCC’s Weak Regulatory Oversight  Resposible for  Poor Telecom Services

The lawmakers accused the NCC of failing to enforce standards that would compel operators to provide reliable connectivity.

They warned that persistent issues like dropped calls, slow data speeds, and network failures pose serious risks to lives and property, particularly during emergencies.

The resolution followed the adoption of a motion of urgent public importance moved by Ahmadu Jaha, representing Chibok/Damboa/Gwoza Federal Constituency in Borno State.

Speaking on the motion, Jaha emphasised the critical role of telecommunications in Nigeria’s economy and daily life, while lamenting the widening gap between subscriber expectations and actual service delivery.

“Telecommunication has become a vital part of everyday life in Nigeria. It connects families, supports businesses, enhances education, and drives economic growth. However, despite its importance, the quality of service provided by many telecom companies remains unsatisfactory,” he said.

Jaha highlighted recurring problems such as dropped calls, poor internet speeds, and failed message deliveries as signs of deeper systemic failures in the sector.“The House is concerned that poor network connectivity is a major issue.

Subscribers frequently experience dropped calls, slow internet speeds, and difficulty sending messages. This affects both personal communication and business operations, leading to frustration and financial losses,” he added.

Lawmakers also expressed dissatisfaction with the high cost of services relative to the quality received.

Jaha noted that Nigerians pay substantial amounts for data bundles that are quickly depleted due to unstable connections and frequent interruptions.

He further pointed to inadequate customer service, where complaints often go unresolved for long periods, hindering emergency communications during fire outbreaks, medical emergencies, or accidents.

The lawmaker attributed part of the problem to insufficient infrastructure expansion, especially in growing urban centres and underserved rural areas.

“Network congestion during peak hours and in densely populated areas shows that infrastructure development has not kept pace with the growing number of users,” he said.

Supporting the motion, George Ozodinobi, deputy minority whip, accused telecom operators of prioritising profits over service quality while faulting the NCC for regulatory complacency.

“It is like these companies have made enough profits in billions, and so, they don’t care about improving the network anymore. The NCC, the regulator, has become complacent,” Ozodinobi stated.

Despite the sector’s rapid growth from under one million lines in the early 2000s to over 200 million active subscriptions today challenges such as insufficient base stations, unreliable power supply, multiple taxation, and infrastructure vandalism continue to hamper service quality.

In its resolution, the House urged telecom companies to invest in modern infrastructure, expand coverage especially in rural communities, improve customer service, and adopt fairer pricing that reflects actual service quality.

The lawmakers also directed the NCC to enforce stricter quality-of-service standards and hold operators accountable.

They further resolved to set up an ad-hoc committee to investigate the root causes of poor service delivery and recommend appropriate legislative measures.

 

 


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GSMA Africa Policy Group Chair Calls for Urgent Tax Reforms to Accelerate Digital Inclusion

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Mr. Daddy Mukadi, the Chief Regulatory Officer of Airtel Africa and Chair of GSMA Africa’s Policy Group, has called on African governments to recognise telecommunications as a core economic pillar and to implement two specific tax reforms that could dramatically accelerate digital inclusion across the continent.

Speaking at the first edition of the États Généraux du Secteur des Postes et Télécommunications in Kinshasa, DRC – an event convened to support the development of a strategic roadmap for the country’s digital and telecommunications sector and attended by H.E. President Félix Tshisekedi – Mukadi, who’s also a member of the GSMA Global Policy Group, urged government and industry stakeholders to rethink the role of telecommunications in national development.

He argued that it should be framed not as a sector specific concern, but as a continent-wide imperative.

“The telecoms sector can no longer be considered merely as a support sector,” Mukadi said. “It is now a core sector. Both are vital, and every other sector, from security and finance to transport and health, depends on digital technology for growth.”

His remarks come at a critical moment for Africa’s digital economy. According to the GSMA’s Mobile Economy Africa 2025 report, the mobile sector contributed US$220 billion to the continent’s economy in 2024. This is equivalent to 7.7% of GDP and is projected to reach US$270 billion by 2030.

Yet despite mobile networks now covering 95% of Africa’s population, nearly 75% of people across the continent remain offline.

The GSMA identifies this gap as Africa’s greatest connectivity challenge, driven above all by the unaffordability of devices.

Mr. Mukadi, therefore, called for strategic adjustments to public policy, as well as legal and regulatory frameworks, to support wider access to digital services.

He asserted that the telecommunications sector should be treated as a foundational pillar of economic development, with stakeholders working together to accelerate investment, expand coverage and close the usage gap across the continent.

The Chief Regulatory Officer of Airtel Africa also highlighted key barriers to digital inclusion, including the affordability of smartphones and the impact of import duties on telecommunications infrastructure.

He proposed a two-to-three-year exemption on import duties and taxes for entry-level smartphones priced between US$40 and US$150 to help bridge the usage gap. He also called for the removal of entry duties on telecommunications equipment for at least three years to support the expansion of network coverage.

According to him, “these measures would help deliver inclusive and sustainable digital technology for economic and social progress,” Mukadi said. “They would also support faster connectivity, improved access and the ability to connect more people, businesses and communities to the digital economy.”

He added that government and the private sector must work closely to create a regulatory environment that encourages innovation, protects consumer interests and supports long-term investment.


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