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How desirable is 5% Excise Duty on Telecom Services?

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By Ibrahim Dan Halilu

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed has thrown Nigeria into another controversy amidst plans to launch the 5G network, which is expected to transform every sector and sphere of life of the citizenry.

Telecom

Coming at a time when Nigeria warming up to launch the largest high speed mobile network technology (5G) in Africa, the 5% excise duty on telecom services being implemented by the Federal Ministry of Finance and the Nigeria Customs Service, is not only a negation of the laudable gains of the Buhari administration in the telecom sector but another incontrovertible proof of the administration’s poor policy coordination.

The expectation of most Nigerians is that the Finance Minister and the Controller General of the Nigeria Customs Service who are the prime advocates of the 5% excise duty will engage with the Ministry of Communications and Digital Economy under whose purview the telecom sector presides, and the Nigerian Communications Commission (NCC) which is the telecom sector regulator, to create a synergy before rolling out the new tax regime.

It is no brainer to understand the imperative of engaging with these two government institutions whose role is central to all that the administration has achieved in that sector.

The NCC has over the years implemented various initiatives and programmes that have stabilized the telecom sector and created a very healthy environment for the industry to thrive and offer quality and affordable service to Nigerians.

The commission’s declaration of 2016 as the Year of the Telecom Consumers has placed premium on the consumer as king who should be treated with respect and offered value for money.

Conversely for the mobile network operators who enjoyed massive support of the Commission disputes resolution, protection of critical telecom infrastructures, and restoration of operational facilities that enhance better performance of the industry.

The Commission has played a very strategic role in resisting arbitrary hike in tariffs and other charges for telecom services which can impose additional burden on the consumers. Instead, the NCC envisions a new tariff regime that has not only reduced the cost of data by more than 100% but further increased access to telecom services in Nigeria.
Its robust National Broadband Policy 2020-2025 is aimed at achieving a new landmark in telecom operations in Nigeria as it rolls out the 5G technology that will change the way of doing almost everything.

Similarly, the Ministry of Communications and Digital Economy through its indefatigable minister, Prof. Isa Ali Pantami has launched Nigeria on the world map of countries that are transiting from analogue to digital economy with the unveiling of a robust policy on 5G Network and Digital Economy.

These are commendable efforts that should be complimented by the Federal Ministry of Finance and Nigeria Customs Service (NCS) through advocacy for a downward review or complete removal of some of the tariffs imposed on the MNOs and other service providers.

The presidential inauguration of a 27-person committee charged with the teak of exploring ways of improving Nigeria’s ranking on the Ease of Doing Business, should have been followed by an aggressive drive of the Federal Ministry of Finance to streamline some of the regulatory measures that hinder the effective performance of the industry such as multiple taxation, and promote policies that will remove barriers to consumer adoption of the new technology.

It is on this note that one wishes to appeal to the Minister of Finance to exercise the power conferred on her by the Finance Act 2020 with caution and empathy to the Nigerian consumers who are already overburdened by new series of taxes introduced by the Buhari Administration.

The Minster needs to find equilibrium between government’s desires to raise more funds and citizen’s expectations for better welfare as the destabilizing effects of the new tax regime outweigh its monetary benefits both to the economy and the citizens.

Firstly, the policy will reverse the gains recorded by the NCC in reducing the cost of telecom services to the consumer and efficient service by the Mobile Network operators (MNOs) who have to contend with multiple taxations and increased operation costs.

Secondly, the new policy may further have adverse effect on the flow of both foreign and local investment in the broadband infrastructure that is needed to scale up the deployment of 5G network to other cities across the country. The MNOs are already groaning under an indiscriminate multiple taxation policy that make is harming their business.

The greatest damage the new tariff will do to Nigeria’s telecom sector is derailing the rollout and total adoption of the 5G network that is being test run by the major telecom service network, the MTN whose competitor, Mafab has already announced an extension of the 5G launch to end of the year due to unforeseen challenges.

The Federal Government’s policy on 5G Spectrum for Digital Economy driven by the Ministry of Communication and Digital Economy may suffer a setback under the new harsh tax regime that targets the telecom sector as a major revenue earner for government.

The imposition of the 5% excise duty will be an additional burden on small businesses and individuals who wish to take advantage of the benefits and opportunities offered by the 5G network to expand and improve their businesses as they may face a new tariff regime.

Another possible consequence of the new tax regime is retarding the progress made in launching Nigeria into the open governance platform that promotes transparency and accountability, while enhancing citizens’ participation in governance as any increase in tariff will lead to low patronage of the telecom services.

It is my candid view therefore that the introduction of 5% excise duty on telecom services is both untimely and undesirable for Nigeria whose majority citizens are living below poverty margin, and have no visible source of income.

The Federal Ministry of Finance and the Nigeria Customs Service should dissipate more energy on initiating people-centred policies that will support the NCC in performing its regulatory functions instead of frustrating the laudable efforts of the commission to promote affordable and efficient telecom services in Nigeria.

The duo should regard themselves as a part of the same government that enunciated the policy of promoting digital economy through universal access to telecom services for Nigerians instead of a separate entity that competes for space or attention.

In her search for new avenues to improve government revenue, the Finance Minister should look beyond imposing excise duty on telecom services, and engage with the public and other stake holders to explore other options that are richly available.

The government can tilt the scale towards diversifying its revenue generation to imports for luxury items, luxury life-styles, and reducing the cost of governance at different levels. There are many wasteful spending that can be scaled down to save money for government to meet its financial obligations which is the main thrust of the Minster’s argument.

These include the purchase of exotic vehicles for public office holders, foreign travels, high duty allowances, and foreign trainings for public officials. Others are blocking the conduit pipes and confronting corruption head on.

These and many others will spare a huge sum that can be channeled to more productive projects that will impact on the lives of the people.

The rush to impose new tax regime on consumers of telecom services will be self-defeating, if at the end of the day the only benefit it accrues to the government is more money to spend instead of better welfare for citizens.

The telecom services are no longer a luxury but necessary tools that Nigerians need to connect with the rest of the word, share their ideas, knowledge, and information for a much better society.

The government should not shut out Nigerians or make it impossible for them to reach out to the rest of the world to market their skills, talents, and products in return for the much needed foreign exchange which is the essence of the digital economy which is the fulcrum of the administration’s |economic policy.

Nigerians deserve efficient and affordable telecom services to conduct their business activities on a global scale, which the controversial 5% excise duty seems to negate. It is a right, not privilege!

Ibrahim Dan Halilu is an Abuja based media consultant and communication expert. He can be reached via email at [email protected] or mobile 08101064449 9SMS only).

 

 

 


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Dr. Cairo Ojougboh Foundation Bolsters Nigeria’s Education Drive with ₦2.7m Student Support

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Dr. Cairo Ojougboh Foundation has reinforced government’s educational development efforts in Nigeria through a targeted initiative honouring the late medical doctor and House of Representatives member, Dr. Cairo Ojougboh.

Dr. Cairo Ojougboh Foundation Bolsters Nigeria's Education Drive with ₦2.7m Student Support

L-R: Son of the late Dr, Cairo Ojougboh, Mr. Nkem Ojougboh; Chairperson, Dr. Cairo Ojougboh Foundation, Mrs. Bose Ojougboh and another son, Mr. Orieka Ojougboh, during the event in Agbor, Delta State recently.

The foundation recently hosted a programme themed “Your Future, Your Choice” at St. Columba’s Grammar School in Agbor, headquarters of Ika South Local Government Area, Delta State.

It presented a cheque of ₦2,700,000 to cover examination fees for students preparing for West African Examinations Council (WAEC), National Examinations Council (NECO), and Junior Secondary School (JSS) 3 exams.

Academic excellence received further boosts with cash rewards for top students across the school’s nine academic arms, alongside distributions of notebooks and writing materials to enhance learning.

Chairperson Mrs. Bose Ojougboh, joined by her sons Mr. Nkem and Mr. Orieka Ojougboh, urged students to view challenges as stepping stones, embrace discipline, consistency, and focus, and make intentional choices shaping their futures.

“The school that moulded Dr. Cairo’s values deserves our support,” she said, highlighting the foundation’s commitment to inspiring hard work and personal growth.

Old Boys of St. Columba’s Grammar School, led by Elder Ndudi Agholor, attended in force, sharing nostalgic reflections and praising the school’s sustained high standards under current leadership.

School Principal Rev. Fr. Joseph Ugboh and Ika South LGA Chairman Engr. Jerry Ehiwarior lauded the initiative as “commendable and impactful,” calling for its continuation to preserve Dr. Ojougboh’s legacy of discipline, excellence, and service.

They noted the support had motivated students to pursue their goals with renewed determination, ending the event on a hopeful note.


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New Horizons Nigeria Breaks Ground: First to Fuse Mandarin into ICT Curriculum

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In a landmark educational innovation, New Horizons Nigeria has become the first institution to integrate the Chinese (Mandarin) language into its ICT curricular as an elective, thereby positioning Nigerian students for relevance in the rapidly changing world order.

New Horizons Nigeria Breaks Ground: First to Fuse Mandarin into ICT Curriculum

Mr. Tim Akano, Managing Director and CEO of New Horizons Systems Solutions Limited

New Horizons Nigeria is a leading ICT training and solutions provider committed to provide individuals and institutions with future-ready skills. Through innovative program, global partnerships, and strategic foresight, the organization continues to redefine education, workforce development, and global competitiveness.

With over 80% of global consumer products manufactured in China and China’s growing dominance in global supply chains and labour markets, New Horizons Nigeria recognizes the urgent need for the current generation to understand, speak, and engage with the Chinese language and culture. As global economic power dynamics evolve, the labour market is increasingly tilting towards China, making Mandarin proficiency a critical competitive advantage.

According to Mr. Tim Akano, Managing Director and CEO of New Horizons Systems Solutions Limited, Nigeria, the program represents far more than a language course.

He asserted that very soon, the global labour market is likely to increasingly reflect China’s influence rather than the predominantly western orientation it currently exhibits. Language will be a major differentiator and the first Chinese-speaking technology experts in Nigeria will have a significant advantage, especially in integration into Chinese companies operating locally and globally.

Therefore, New Horizons Nigeria has officially launched a Mandarin Scholarship Program with China Advancement Opportunity, selecting 100 outstanding students from five prominent Nigerian secondary schools. This initiative marks a major milestone in Nigeria–China educational cooperation and reflects a forward-thinking response to shifting global economic realities.

Furthermore, the scholarship program has commenced with an intensive three-month online Mandarin training and at the end of the program, the top-performing students will be selected strictly on merit. 20 outstanding students will receive an additional scholarship valued at $2,500 per students to participate in a one-year pre-degree Mandarin and cultural immersion program in China. From this group, the best candidates will progress to fully funded admission scholarships into top universities in China. This initiative is designed not only to build language proficiency but also to enhance global competence, international exposure, and cultural intelligence among Nigerian students.

Also, to maintain international academic standards, participating schools are required to comply with strict guidelines. They will be obligated to join the online classes ten minutes earlier, they must have a minimum of 85% attendance throughout the program, and must ensure they have a stable internet connectivity, reliable power supply and a conducive learning environment.

Therefore, School owners and administrators have been formally congratulated and strongly encouraged to nominate their most disciplined, and committed students, as advancement to the China program will be strictly merit-based.

However, apart from students, internation business men are equally encouraged to attend New Horizon’s Mandarin executive lessons which will equip them with basic Chinese language to enhance their business communications.

Additionally, while the pilot phase begins with selected secondary schools which includes Startrite School, Lightway School, British Nigerian Academy School, Honeyland Schools and Great Heights School, the Mandarin program will be available as an elective ICT course at all New Horizons retail centers.

This is done to extend access to students and learners beyond its partner schools and within one year, committed learners will be able to communicate effectively in Mandarin, which will open doors to global employment, trade, and cultural exchange.

In conclusion, a Mandarin Cultural Fiesta will be hosted, bringing together educators, students, institutional partners, and distinguished guests from China and Nigeria. The event will celebrate outstanding performance, cross-cultural exchange, and the strengthening of bilateral educational ties.

For enquiries and participation details, interested individuals are encouraged to contact New Horizons Nigeria via 08125541750


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Why the Future of PR Depends on Healthier Client–Agency Partnerships

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By Moliehi Molekoa, Managing Director of Magna Carta Reputation Management Consultants and PRISA Board Member

The start of a new year often brings optimism, new strategies, and renewed ambition. However, for the public relations and reputation management industry, the past year ended not only with optimism but also with hard-earned clarity.

Why the Future of PR Depends on Healthier Client–Agency Partnerships

Moliehi Molekoa

2025 was more than a challenging year. It was a reckoning and a stress test for operating models, procurement practices, and, most importantly, the foundation of client–agency partnerships. For the C-suite, this is not solely an agency issue.

The year revealed a more fundamental challenge: a partnership problem that, if left unaddressed, can easily erode the very reputations, trust, and resilience agencies are hired to protect. What has emerged is not disillusionment, but the need for a clearer understanding of where established ways of working no longer reflect the reality they are meant to support.

The uncomfortable truth we keep avoiding

Public relations agencies are businesses, not cost centres or expandable resources. They are not informal extensions of internal teams, lacking the protection, stability, or benefits those teams receive. They are businesses.

Yet, across markets, agencies are often expected to operate under conditions that would raise immediate concerns in any boardroom:

  • Unclear and constantly shifting scope

  • Short-term contracts paired with long-term expectations

  • Sixty-, ninety-, even 120-day payment terms

  • Procurement-led pricing pressure divorced from delivery realities

  • Pitch processes that consume months of senior talent time, often with no feedback, timelines, or accountability

If these conditions would concern you within your own organisation, they should also concern you regarding the partner responsible for your reputation.

Growth on paper, pressure in practice

On the surface, the industry appears healthy. Global market valuations continue to rise. Demand for reputation management, stakeholder engagement, crisis preparedness, and strategic counsel has never been higher.

However, beneath this top-line growth lies the uncomfortable reality: fewer than half of agencies expect meaningful profit growth, even as workloads increase and expectations rise.

This disconnect is significant. It indicates an industry being asked to deliver more across additional platforms, at greater speed, with deeper insight, and with higher risk exposure, all while absorbing increased commercial uncertainty.

For African agencies in particular, this pressure is intensified by factors such as volatile currencies, rising talent costs, fragile data infrastructure, and procurement models adopted from economies with fundamentally different conditions. This is not a complaint. It is reality.

This pressure is not one-sided. Many clients face constraints ranging from procurement mandates and short-term cost controls to internal capacity gaps, which increasingly shift responsibility outward. But pressure transfer is not the same as partnership, and left unmanaged, it creates long-term risk for both parties.

The pitching problem no one wants to own

Agencies are not anti-competition. Pitches sharpen thinking and drive excellence. What agencies increasingly challenge is how pitching is done.

Across markets, agencies participate in dozens of pitches each year, with success rates well below 20%. Senior leaders frequently invest unpaid hours, often with limited information, tight timelines, and evaluation criteria that prioritise cost over value.

And then, too often, dead silence, no feedback, no communication about delays, and a lack of decency in providing detailed feedback on the decision drivers.

In any other supplier relationship, this would not meet basic governance standards. In a profession built on intellectual capital, it suggests that expertise is undervalued.

This is also where independent pitch consultants become increasingly important and valuable if clients choose this route to help facilitate their pitch process. Their role in the process is not to advocate for agencies but to act as neutral custodians of fairness, realism, and governance. When used well, they help clients align ambition with timelines, scope, and budget, and ensure transparency and feedback that ultimately lead to better decision-making.

“More for less” is not a strategy

A particularly damaging expectation is the belief that agencies can sustainably deliver enterprise-level outcomes on limited budgets, often while dedicating nearly full-time senior resources. This is not efficiency. It is misalignment.

No executive would expect a business unit to thrive while under-resourced, overexposed, and cash-constrained. Yet agencies are often required to operate under these conditions while remaining accountable for outcomes that affect market confidence, stakeholder trust, and brand equity.

Here is a friendly reminder: reputation management is not a commodity. It is risk management.

It is value creation. It also requires investment that matches its significance.

A necessary reset

As leadership teams plan for growth, resilience, and relevance, there is both an opportunity and a responsibility to reset how agency partnerships are structured.

That reset looks like:

  • Contracts that balance flexibility and sustainability

  • Payment terms that reflect mutual dependency

  • Pitch processes that respect time, talent, and transparency for all parties

  • Scopes that align ambition with available budgets

  • Relationships based on professional parity rather than power imbalance

This reset also requires discipline on the agency side – clearer articulation of value, sharper scoping, and greater transparency about how senior expertise is deployed. Partnership is not protectionism; it is mutual accountability.

The Leadership Question That Matters

The question for the C-suite is quite simple:

If your agency mirrored your internal standards of governance, fairness, and accountability, would you still be comfortable with how the relationship is structured?

If the answer is no, then change is not only necessary but also strategic. Because strong brands are built on strong partnerships. Strong partnerships endure only when both sides are recognised, respected, and resourced as businesses in their own right.

The agencies that succeed and the brands that truly thrive will be those that recognise this early and act deliberately.


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