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Furore as Telcos Hike Communications Service Tax to 9%

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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.

 

 

 


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Telecom

Telcos Recover N2 Trillion following Crackdown on Indebted Subscribers

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Telecommunications operators in Nigeria have reportedly recovered over N2 trillion from subscribers in a sweeping debt recovery campaign that has left millions unable to make calls due to unpaid airtime and data loans.

Telcos Recover N2 Trillion following Crackdown on Indebted Subscribers

The aggressive enforcement follows new compliance requirements introduced by the Federal Competition and Consumer Protection Commission (FCCPC), which telecom operators reportedly failed to meet, according to The News Chronicle.

This led to the suspension of airtime and data lending services and triggered a nationwide push to recover outstanding debts.

As part of the measures, indebted subscribers have had their lines restricted from making calls until their loans are fully repaid.

The move has disrupted daily life across Nigeria, particularly for small business owners and workers who depend heavily on mobile connectivity.

The lending service, valued at over N400 billion annually, has long served as a financial lifeline for many Nigerians, especially those without access to formal credit systems.

However, its sudden suspension has forced users to seek alternative means to clear their debts or abandon their lines altogether.

Meanwhile, a legal dispute involving Nairtime Nigeria Limited has added another layer of complexity.

A Federal High Court in Abuja recently ordered MTN Nigeria and Airtel Nigeria to maintain access to key telecom infrastructure, including USSD and SMS services linked to the platform.

Despite the court’s interim injunction, lending services tied to the platform remain unavailable, indicating ongoing tensions between telecom providers, regulators, and fintech firms.

Industry stakeholders warn that the disruption highlights deeper challenges within Nigeria’s digital economy, where telecom infrastructure increasingly supports financial services.

Millions of users who rely on airtime and data borrowing remain disconnected, caught between regulatory policies, corporate disputes, and the need for affordable communication.

As pressure mounts, both regulators and telecom operators are expected to seek a resolution that balances consumer protection with uninterrupted access to essential digital services.


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Organized Criminals Plunder Telecom Infrastructure across Nigeria, Cause Service Disruptions

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Theft and vandalism of critical infrastructure have reached crisis levels in Nigeria, as hundreds of generators and batteries are being stolen from base stations across the country.

Organized Criminals Plunder Telecom Infrastructure across Nigeria, Cause Service Disruptions

Vandals and criminal gangs target power-related assets and cables, creating significant operational damage, with over 50,000 cases reported over five years, leading to network shutdowns.

A newly released data from the Nigerian Communications Commission (NCC) showed that 656 critical power assets were stolen from telecom sites across the country in 2025 alone.

According to the NCC data, a total of 152 generators and 504 batteries were stolen within the year, raising fresh concerns about network reliability and quality of service.

The infrastructure theft debacle is not limited to generators and batteries alone as rampant cases of cables and diesel thefts are also reported.

This vandalism causes massive disruptions in electricity and connectivity, resulting in significant financial losses and hindered business operations nationwide.

Hardest Hit States are; Delta, Rivers, Cross Rivers, Akwa Ibom, Ogun, Ondo, Edo, Lagos, Kogi, FCT, Kaduna, Niger, Osun, and Kwara.

Operators like MTN Nigeria said it spent over N1 billion on security and repair in 2025 due to 9,218 fiber cuts.


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MTN Nigeria Remits N878.7Bn Taxes, Levies in 2025

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MTN Nigeria Communications Plc has reported a total remittance of N878.7bn in taxes, levies, and duties for the 2025 financial year, representing a 15 per cent increase from the prior year and underscoring its significant contribution to government revenue and national development.

MTN Nigeria Remits N878.7Bn Taxes, Levies in 2025

The disclosure was contained in the company’s 2025 Sustainability Report, released on Monday, which highlights sustained progress across environmental, social, and governance (ESG) metrics, alongside continued investment in network expansion, social impact, and responsible business practices.

The telecoms operator said the increase in fiscal contributions reflects its expanding operations and commitment to regulatory compliance, even as it navigates a dynamic macroeconomic environment.

The report also marks MTN Nigeria’s seventh consecutive sustainability publication and its third year of voluntary adoption of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards, ahead of mandatory compliance timelines.

Karl Toriola, chief executive officer, described the report as evidence of “decisive action and measurable progress,” noting that sustainability remains central to the company’s long-term value creation strategy.

According to him, MTN Nigeria continues to integrate ESG principles into its core operations to drive growth, manage risk, and unlock new opportunities.

Beyond its tax contributions, the company recorded notable environmental milestones, including a 6.4 per cent reduction in Scope 1 and 2 greenhouse gas emissions relative to its 2021 baseline.

It also secured a ‘B-’ rating for climate change and ‘C’ for water security from the Carbon Disclosure Project (CDP), while over a third of its top suppliers by spend have committed to its net-zero ambitions.

On the social front, MTN Nigeria expanded its network coverage to 93.7 per cent of the population, improving connectivity nationwide.

Female representation within its workforce rose to 43.4 per cent, while N2.7bn was invested in corporate social investment initiatives, impacting more than 534,000 individuals.

The company also launched its “Help Children Be Children” programme to promote child online safety and awareness.

In terms of governance and business performance, MTN Nigeria reported a Reputation Index of 80.2 per cent, exceeding its benchmark, and achieved a sustainability rating of 3.7 out of 4.0 from ESG rating firm Risk Insights.

The firm further strengthened local economic participation by directing 62 per cent of its procurement spend to domestic suppliers, an increase from the previous year.

Tobechukwu Okigbo, chief Corporate Services and Sustainability Officer,  said the company remains focused on delivering measurable, positive outcomes across its operations.

He noted that MTN Nigeria conducted a comprehensive “True Value Assessment” covering its economic, social, and environmental impacts between 2021 and 2024, alongside a double materiality assessment to better align its strategy with stakeholder priorities.

Okigbo added that the company also hosted its inaugural “Facts Behind the Sustainability Report” session at the Nigerian Exchange Limited (NGX), aimed at enhancing transparency and stakeholder engagement.

MTN Nigeria said it will continue to prioritise sustainable innovation, inclusion, and governance excellence, reiterating its commitment to ensuring broader access to the benefits of a modern, connected life while delivering long-term value to shareholders and society.


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