Telecom
FG Dangles Tax Holidays, Others on Infracos
![Eugene Juwah, EVC, NCC](https://www.nigeriacommunicationsweek.com.ng/wp-content/uploads/2014/12/Eugene-Juwah_70.jpg)
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”.
Telecom
Suspected Lakurawa Terrorists Kill 3 Telcoms Workers in Kebbi
![](https://www.nigeriacommunicationsweek.com.ng/wp-content/uploads/2025/01/Bandits.jpg)
Terrorists belonging to Lakurawa group have reportedly killed three staff of a leading telecommunication firm.
The insurgents were said to have invaded a construction site at Gumki village in Arewa Local Government Area of Kebbi State.
The bandits reportedly attacked a construction site at Gumki village in Arewa Local Government Area of Kebbi State when their victims were installing a surveillance mast for the Nigeria Immigration Service and killed them and one other person who is yet to be identified.
There was a conflicting report of which organization the victims belonged as the police said three of the deceased were Airtel staff and the residents identified them to be Immigration staff.
A staff of Sir Yahaya Specialist Hospital however corroborated the villagers, saying the three victims brought to the hospital were Immigration staff.
But SP Nafiu Abubakar, police spokesperson, said four persons lost their lives, one indigene and three staff of Airtel.
He said from the report the police got, Bello M Sani, state Commissioner of Police, alongside with CIS Muhammad Bashir, Comptroller, Nigeria Immigration Service, Kebbi State Command, Lawali mobilized their men to the scene to evacuate the corpses to Sir Yahaya Memorial Hospital in Birnin Kebbi.
He said his CP has deployed additional tactical teams to the area and charged them to decisively deal with the suspected bandits operating in the area.
He said the CP also had meeting with people in the area and appealed to them to always assist the police and other security agencies with relevant information for their prompt response.
Telecom
Nigeria Has World’s Most Affordable Data Costs – GSMA
![](https://www.nigeriacommunicationsweek.com.ng/wp-content/uploads/2025/01/Telcos.jpg)
Nigeria has an average data cost of $0.38 per gigabyte, making her the most affordable countries globally and one of the cheapest in Africa for mobile data services.
United States averages $6 per gigabyte and South Africa with $1.77 per gigabyte rank the highest globally and in Africa respectively.
According to the GSMA, Nigerian data costs, as a percentage of Gross National Income (GNI) per capita, are among the lowest across Africa.
The reports by the body lends weight to telecom operators advocacy for tariff adjustments to address economic pressures threatening the sector’s sustainability.
The GSMA report, titled “The Role of Mobile Technology in Driving the Digital Economy in Nigeria,” highlighted Nigeria’s competitive data pricing, which is significantly lower than other African nations, such as Kenya ($0.59 per gigabyte), Ethiopia ($0.68 per gigabyte), and South Africa ($1.77 per gigabyte).
By contrast, the United States averages $6 per gigabyte, underscoring Nigeria’s advantage in offering cost-effective connectivity.
The cost of mobile data in Africa varies greatly by country and region.
Data costs can refer to the cost of mobile data or the cost of acquiring, maintaining, and using business data.
In 2023, the average cost of 1 GB of mobile data in Sub-Saharan Africa was $3.31, while in Northern Africa it was $0.86.
Telecommunications operators in Nigeria have been requesting some policy changes as well as tariff rebalancing to enable them deliver support to the Government’s digital economy objectives.
They have called for the simplification and improvement of the Right of Way (RoW) charging and administration process, harmonised across the country
According to them, all government authorities (at national and sub-national levels) should apply the national maximum RoW fee of N145 per/LSQM adopted by the National Economic Council (NEC) for the deployment of fibre across all states in Nigeria.
There should be a single point of contact in each state for the RoW application process while the duration for the approval process should be digitalised and limited to a maximum of one month.
Simplification and reduction of the tax burden on the mobile sector
On tariff, recall that the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
Nodding in agreement, Bismarck Rewane, chief executive officer, Financial Derivatives, said the proposed tariff hike by telecommunications will help reduce inflation in the country.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker, Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
Telecom
Bismarck, Economist Claims Planned Tariff Hike by Telcos Will Reduce Inflation
![](https://www.nigeriacommunicationsweek.com.ng/wp-content/uploads/2024/05/Bismarck-Rewane.jpg)
Bismarck Rewane, chief executive officer, Financial Derivatives, has said the proposed tariff hike by telecommunications will help reduce inflation in the country.
Rewane made this statement on Channels Television’s Business Morning on Thursday.
Recall that Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON) had urged the Nigerian Communications Commission (NCC) to consider reviewing tariffs upward to address rising operational costs.
On January 3, Karl Toriola, chief executive officer (CEO), MTN Nigeria, said telcos want a 100 percent tariff hike.
According to Rewane, who previously supported the plans for a tariff hike, the move will make the sector more sustainable.
He said it would help to reduce inflation because it increases productivity, stressing that the price of MTN shares went up by 10% to 220.
Rewane reiterated that investors had already factored that in, adding that they are expecting a lot of good goodies.
“But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He further said that it was not a bad deal and re-echoed the minister’s comment that the tariff hike will not be 100 per cent.
“Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes,” Rewane added.
- General News2 days ago
Nigeria Recovers $52.88m in Assets Linked to Former Petroleum Minister Diezani Alison-Madueke
- E-Business2 days ago
Cybersecurity Firm Warns of Phishing Threats Targeting Telegram Premium
- General News2 days ago
Transform Your Health with QNET’s BELITE 123: The Ultimate Weight Management Solution
- General News2 days ago
TikTok Announces Plans to Cease Operations in the U.S. by January 19, 2025
- Telecom3 days ago
Nigeria Has World’s Most Affordable Data Costs – GSMA
- E-Financial10 hours ago
BudgIT Queries Irregularities in FG’s Proposed 2025 Budget
- E-Financial10 hours ago
NAICOM Seeks Police’s Support to Enforce Third-party Motor Insurance
- E-Financial10 hours ago
GAIM 6: Fidelity Bank Rewards 10 Customers with N10m