Connect with us

Telecom

Furore as Telcos Hike Communications Service Tax to 9%

Published

on

Kindly share this post

Mobile phone users in Ghana yesterday (October 1, 2019) started paying 3% more on Communication Service Tax, according to Pulse.

 

Nigerians are fighting against the same Bill seeking to impose and collect communication services tax (CST or levy) on charges payable by consumers of electronic communication services in Nigeria (excluding private electronic communication services) at the rate of 9%.

 

But in Ghane, the tax which was hitherto pegged at 6%, was increased to 9% after, Ken Ofori-Atta, finance minister announced that the CST will be higher.

 

He announced this decision in Parliament in July during the presentation of the 2019 mid-year budget review.

 

Mobile users have received text messages from their service providers about the increase. The telcos in their messages said the increase will be “applied to every recharge.”

 

“Dear customer, with the increase in Communications Service Tax – CST to 9%, effective 1st October 2019, CST of 9% will be applied to every recharge. Thank you,” a text to a Vodafone Ghana user read.

 

A statement issued by the Ghana Chamber of Telecommunications said that the increase means that “for every GH¢1 of recharge purchased, a 9% CST fee will be charged leaving GhS0.91 for purchase of products and services”.

 

If you purchase GHC2 airtime you will have GHC1.82

 

Airtime of GHC5 will leave the customer with GHC4.55

 

When a client buys GHC10 the customer will have GHC9.1 for purchase of products and services.

 

GHC20 airtime will leave you with GHC18.2 worth of airtime

 

When you buy a GHC50 worth of airtime you will get GHC45.5 for products and services.

 

In Nigeria, the federal government has mulled Communication Services Tax Bill (the Bill).

Key highlights of the Bill are as follows:

Electronic communication services subject to the levy include: voice calls, SMS, MMS, data usage (both from Telecommunication Services Providers and Internet Service Providers), Pay per View TV Stations etc.

 

The tax is to be paid together with the electronic communication service charge payable to the service provider by the user of the service.

The tax is payable whether or not the person making the supply is permitted or authorized to provide electronic communications services.

The Federal Inland Revenue Service (FIRS) is responsible for collecting the tax from service providers and remitting it into the Federation Account.

All service providers are expected to file monthly returns not later than the last working day of the month immediately after the month to which the tax returns and payment relate.

Penalty for failure to file returns on or before the due date is N50,000 and an additional N10,000 for each day the returns are not submitted.

Failure to pay the tax by the due date attracts monthly interest on the tax due at a rate of 150% of the average of prevailing commercial banks’ lending rates as published by the Central Bank of Nigeria and for this purpose, part of one month shall be deemed to be one month. Where interest payable is not paid within one month after the due date, interest shall be paid on the unpaid interest at the same rate and manner on the unpaid tax.Where tax, penalty and/ or interest is due, FIRS may apply to the Court for an order that compels an individual or business who holds money for or on account of the service provider to pay to the FIRS that money or so much of it as is sufficient to discharge amount due. Where this situation continues, FIRS may apply to the Court for an order to distrain the assets, goods, etc. of the service provider.

In the case of liquidation or bankruptcy, the tax, due shall take precedence over other obligations.

For the purpose of verification of taxes due to government, an agent would be appointed to establish both electronic and physical monitoring mechanisms to monitor, analyse, verify and save all necessary data and information.

A service provider who refuses to provide access to its relevant network for government or its appointed agent commits an offence and is liable to a penalty of 5% of annual gross revenue of the last audited financial statements and if situation persists after 90 days, National Communications Commission (NCC) may revoke the operating license of that service provider.

 

 

 


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

Techeconomy Unveils IWD 2026 Power List Celebrating 100 Women Shaping the Future

Published

on

Kindly share this post

In celebration of International Women’s Day (IWD) 2026, Techeconomy, a leading business news platform in Nigeria, has unveiled its “100 Women Shaping the Future: Techeconomy Power List 2026,” recognizing exceptional women driving innovation, leadership, and impact across technology and the broader digital economy.

Techeconomy Unveils IWD 2026 Power List Celebrating 100 Women Shaping the Future

Techeconomy

The annual recognition spotlights women who are transforming industries through entrepreneurship, policy leadership, digital innovation, financial inclusion, media, education, and emerging technologies.

The initiative is part of Techeconomy’s commitment to promoting gender inclusion and highlighting female leadership shaping Africa’s technology ecosystem.

The Techeconomy IWD Power List features a diverse group of women, from corporate executives and startup founders to policymakers, ecosystem builders, and social innovators, whose work continues to influence the future of technology, business, and digital transformation in Nigeria and across Africa.

Speaking on the initiative, Joan Aimuengheuwa, the Managing Editor at Techeconomy, noted that the recognition goes beyond celebrating titles, focusing instead on impact, resilience, and the ability to shape the future through innovation and leadership.

According to her, “the women on the list represent different sectors including fintech, banking, healthcare, agriculture, education, communications, and the creative economy, demonstrating the growing role of women in advancing technology-driven development.

The unveiling aligns with the global celebration of International Women’s Day, which highlights the achievements of women and calls for accelerated progress toward gender equality. Across the world, the technology sector continues to push for greater female representation and leadership as part of efforts to build more inclusive digital economies.

Also speaking, Oluwatosin Aloba, the Brand Manager at Techeconomy, said: “Techeconomy IWD 2026 Power List is specially designed to inspire the next generation of female innovators and leaders by showcasing role models who are breaking barriers and redefining possibilities in the technology landscape.

“Techeconomy encouraged industry stakeholders, institutions, and the broader public to celebrate the achievements of these women while continuing to support policies, programs, and investments that expand opportunities for women in technology”, she added.

The full list of the “100 Women Shaping the Future: Techeconomy Power List 2026” is available on the Techeconomy website or visit: https://techeconomy.ng/techeconomy-iwd-2026-power-list-celebrates-100-women-shaping-the-future-of-tech/.


Kindly share this post
Continue Reading

Telecom

NITDA, JICA Open iHatch Cohort 5 to Boost State-Level Startup Hubs Nationwide

Published

on

Kindly share this post

National Information Technology Development Agency (NITDA), via its Office for Nigerian Digital Innovation (ONDI), has partnered with the Japan International Cooperation Agency (JICA) to launch applications for the fifth cohort of the iHatch Startup Incubation Programme, targeting 37 innovation hubs—one per state and the Federal Capital Territory (FCT).

NITDA, JICA Open iHatch Cohort 5 to Boost State-Level Startup Hubs Nationwide

NITDA

The initiative selects hubs as state-level managers to run incubation programmes, addressing uneven support outside Lagos and Abuja. “Nigeria’s startup ecosystem has grown rapidly, but access remains uneven,” said ONDI National Coordinator Victoria Fabunmi. “iHatch builds stronger hubs, standardises quality, and boosts investment readiness across all regions.”

Amid Africa’s $3.42 billion startup funding in 2025, Nigeria’s innovation clusters in major cities, sidelining rural founders. Selected hubs will incubate five startups each for at least one year, providing structured guidance for growth and funding. Hubs gain operational support, resources, and performance rewards—prioritizing ecosystem leadership over cash grants.

Eligibility and Timeline

Eligible hubs must:

  • Operate for at least one year with local engagement.

  • Possess infrastructure for incubation activities.

Applications close March 16 at ondi.nitda.gov.ng/#/ihatch.

Fabunmi emphasized: “By equipping hubs with tools, curriculum, and oversight, iHatch ensures consistent outcomes for founders everywhere,” tackling geographic gaps to scale local innovation.


Kindly share this post
Continue Reading

Telecom

Canal+ Unveils €100m Rescue Plan to Revive MultiChoice after Subscriber Slump

Published

on

Kindly share this post

French media group Canal+ has announced a €100 million turnaround plan to revive growth at MultiChoice, Africa’s largest pay-TV operator, after the DStv owner lost hundreds of thousands of subscribers and suffered a decline in revenue in 2025.

Canal+ Unveils €100m Rescue Plan to Revive MultiChoice After Subscriber Slump

MultiChoice

The move follows Canal+’s full takeover of the South Africa-based broadcaster, which has been squeezed by weaker household purchasing power across Africa and intensifying competition from global streaming platforms.

According to Canal+’s latest financial disclosures, MultiChoice ended 2025 with 14.4 million subscribers, down from 14.9 million a year earlier, while revenue fell 6 per cent to €2.4 billion.

Adjusted earnings before interest and tax dropped 14 per cent to €159 million, prompting Canal+ to describe 2025 as “another challenging year” marked by falling subscriber numbers and an unsustainably high cost base.

The group cited currency depreciation in key markets such as Nigeria and persistent electricity shortages as major headwinds making it harder for households to maintain pay-TV subscriptions.

Canal+ also pointed to problems at Showmax, MultiChoice’s streaming service, describing one of its key contracts as an “expensive failure” and confirming that the arrangement is being shut down as part of a wider refocus on the core pay-TV business.

Under the new “boost plan,” which will roll out from 2026, Canal+ aims to restart subscriber growth and improve profitability across MultiChoice’s footprint by investing in content, pricing, distribution and sales.

On content, the French group says it plans to assemble the “best content on the African continent” by blending premium international programmes with more locally produced films, series and sports tailored to African audiences.

It will also simplify subscription packages and adjust pricing structures to make DStv and related offerings easier for customers to understand and afford.

To expand reach, Canal+ intends to subsidise hardware such as decoders and satellite dishes, lowering entry costs for new users.

In addition, the company will recruit more than 1,000 sales staff across African markets as it shifts MultiChoice towards a more aggressive, “sales-focused” model designed to win back and attract subscribers.

Alongside this investment push, Canal+ is embarking on significant cost-cutting measures, including a voluntary severance plan for some MultiChoice support staff and a restructuring of Irdeto, its technology and cybersecurity subsidiary.

Canal+ now expects to generate over €250 million in synergies by 2026, up from an earlier €150 million estimate, driven by the shutdown of loss-making Showmax contracts, operational restructuring at MultiChoice and rationalisation of company-owned properties.

The cost of delivering these savings is projected at between €70 million and €100 million. Despite the planned reforms, the group still anticipates a slight further decline in MultiChoice’s subscriber base in 2026, though the pace of losses is expected to slow, with adjusted earnings before interest and tax forecast to rise modestly to about €170 million as cost savings begin to offset weaker revenue and higher expenses.

Canal+ gained effective control of MultiChoice on 20 September 2025 after acquiring a majority stake, later buying out remaining shareholders and delisting the company from the Johannesburg Stock Exchange in December 2025.

The French media group has said it intends to complete a secondary listing on the JSE before June 2026 to reinforce its presence in Africa’s fast-growing media and entertainment market.

The €100 million boost plan underlines the mounting pressure on traditional pay-TV operators across the continent as currency weakness, rising living costs and rapid expansion of streaming services force a strategic rethink of legacy television business models.


Kindly share this post
Continue Reading

Trending