Broadcasting
How desirable is 5% Excise Duty on Telecom Services?
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.
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 idhalilu@gmail.com or mobile 08101064449 9SMS only).
Socio-Economic Rights and Accountability Project (SERAP) and the Nigerian Guild of Editors (NGE) have filed a lawsuit against Umar Bago, Niger State Governor, and the National Broadcasting Commission (NBC) over what they described as “the ongoing intimidation” of Badeggi FM Radio, Minna, and the threat to shut down the station.
This was contained in a statement on Sunday by Kolawole Oluwadare, deputy director, SERAP, accusing NBC of failing to stand in defence of the local station.
PUNCH Online had reported that Bago ordered the closure and the revocation of the licence of Badeggi Radio 90.1 FM in Minna over alleged public incitement.
However, in suit number FHC/L/CS/1587/2025, filed last Friday at the Federal High Court, Lagos, SERAP and NGE are seeking to determine “whether by Section 22 of the Nigerian Constitution 1999 (as amended) and section 2(1)(t) of the NBC Act, the NBC has the legal duty to protect Badeggi FM from the ongoing intimidation from the governor.”
They are also seeking “an order of perpetual injunction restraining the Niger state governor and NBC from further harassing, intimidating and/or threatening to shut down Badeggi FM radio, revoke its licence and profile the station’s owner.”
The groups argued, “The ongoing intimidation and threat by Mr Bago to strip Badeggi FM station of its licence, further threat to demolish the station’s premises and profile its owner is unlawful and a violation of the rights to freedom of expression, access to information, and media freedom.”
They described allegations of inciting violence against the station and its owner as “vague, unfounded and unsubstantiated and apparently made to silence the radio station.”
The suit, filed on behalf of SERAP and NGE by lawyers Kolawole Oluwadare, Oluwakemi Agunbiade, and Andrew Nwankwo, read in part, “The media plays an essential role as a vehicle or instrument for the exercise of freedom of expression and information – in its individual and collective aspects – in a democratic society.
“Intimidating, harassing and silencing critical or dissenting voices under the guise of vague and unsubstantiated national security concerns is a fundamental breach of the Nigerian Constitution and Nigeria’s international human rights obligations.
“The ongoing intimidation and harassment of Badeggi FM and its owner is capable of discouraging participation of the press in debates over matters of legitimate public concern ahead of the 2027 general elections.”
SERAP and NGE are therefore asking the court for the following reliefs, “A declaration that by the combined provisions of Section 22 Nigerian Constitution and section 2(1)(t) of the National Broadcasting Act, the NBC is obligated by law to protect Badeggi FM station and other broadcasting outlets in Nigeria from undue interference from unauthorised persons or entity.
“A declaration that the failure and/or neglect of the NBC to protect and defend the independence of the radio station against arbitrary executive interference constitutes a breach of its statutory duty to ensure fair, independent, and lawful broadcasting practices in Nigeria.
“A declaration that the ongoing intimidation and threat issued by Mr Bago to strip Badeggi FM station of its operational licence and further threat to demolish the station’s premises is unlawful and a violation of the rights to freedom of expression, access to information, and media freedom.
“A declaration that the threat issued by the Bago to strip Badeggi FM radio station of its operational licence encroaches upon the statutory powers of the NBC as provided for under section 2 of the National Broadcasting Commission Act.
“An order of perpetual injunction restraining the governor and NBC, its agents and privies from harassing, intimidating and/or threatening to revoke the operating licence of Badeggi FM station or any other broadcasting outlet in Niger State.”
It was said that no date has been fixed for the hearing of the suit.
Spotify has named Ghanaian trailblazer Amaarae as the EQUAL Africa artist for August, spotlighting her as one of the continent’s artists who continues to push creative and cultural boundaries with every beat, lyric, and look.
Amaarae, born Ama Serwah Genfi, raised between Ghana and the U.S.A often pulls her musical inspiration from the cultures and genres she grew up with. She has consistently pushed the boundaries of sound and identity, with her unique fusion of alternative, pop, R&B, and Afrobeats cementing her place as a singular voice in modern music.
Her musical journey took a turn in a computer lab in Ghana in 2009, where she taught herself to make beats on a cracked version of FL Studio. That moment sparked the fire for a career that would go on to produce game-changing projects like “The Angel You Don’t Know” and global hits such as “SAD GIRLZ LUV MONEY”.
Amaarae’s inclusion on Spotify’s Global Impact List for the first half of the year, highlighting the most-exported Ghanaian songs, was no surprise. She has become a symbol of how African music is travelling further, faster, and louder than ever before.
With her latest album BLACK STAR she returns to her Ghanaian roots with bold energy, crafting what she calls a “rallying cry for youth culture around the world. This album is bringing the alternative community to the forefront and being fearless about that.”
“I navigate the music world with balance, willpower, and strength. The challenges are real, don’t get me wrong, but I put my blinders on, lock into tunnel vision, and get to work. And when I come across another woman on the journey, especially a Black woman, I do my best to share knowledge, create opportunities, and lighten the load where I can,” says Amaarae.
As part of Spotify’s EQUAL programme, which amplifies women’s voices worldwide, Amaarae joins a growing list of African women shaping the future through sound and self-expression.
“Amaarae embodies the spirit of boundary-pushing creativity that EQUAL stands for,” says Phiona Okumu, Spotify’s Head of Music for Sub-Saharan Africa. “Her artistry is bold, distinct, and unapologetically authentic – qualities that continue to inspire a new generation of artists across the continent and beyond.”
We sat down with Amaarae to learn more about her and her music:
1. What is that one surprising thing your fans might not know about you?
Amaarae: I’m one step away from being legally blind! My vision is a -7 and I have astigmatism!!
2. When did you realise that making music was in your destiny and what is your WHY for pursuing this craft?
Amaarae: When I moved back home to Ghana in 2009, I was learning how to make beats and record myself at the back of the computer lab. Someone had installed a cracked version of FL.
3. Which African songs or artists did you grow up listening to?
Amaarae: The list goes on and on. Daddy LUMBA (RIP), Terri Bonchaka, MzBel, Abrewa Nana, Obrafour’s legendary album Pae Mu Ka, Sarkodie, Kwadwo Antwi. I could go all day.
4. To someone who has never heard your music, how would you describe the sound, tone, and style?
Amaarae: Let’s encourage listeners to be curious and adventurous! If you’re reading this and you’ve never heard my music, I dare you to go listen! And tell me how YOU would describe my sound.
5. Any advice for someone dreading following their dreams?
Amaarae: The regret does more damage than the effort.
By Ursula Fear, Senior Talent Programme Manager | Salesforce
Is AI coming for your job, or is it already working beside you? As its use becomes more routine, artificial intelligence is looking less like a threat and more like a teammate: answering queries, making decisions, chasing leads, processing invoices, and drafting content around the clock.
Ursula Fear, Senior Talent Program Manager, Salesforce
This new class of digital labour is changing how teams function, how targets are met, and how people spend their time at work. From now on, almost every job, team, and company will involve AI agents – systems that can analyse vast datasets, apply human-like reasoning, and act independently. Their presence is set to influence workflows, increase productivity, support innovation, and redefine roles across the organisation.
Rather than replacing people, AI is tilting the workload. Salesforce research shows that 23% of HR teams plan to redeploy employees into roles that make better use of their uniquely human strengths. At the same time, agentic AI adoption is projected to surge by 327% over the next two years (from roughly 15% adoption today to about 64% by 2027).
This shift is tied to anticipated productivity gains of 30% per employee and labour cost reductions of 19%, equating to about $11,000 in savings per employee annually, based on Organisation for Economic Co-operation and Development (OECD) wage averages. Rather than replacing people, organisations are preparing to reskill and redeploy workers, enabling humans to focus on higher-value roles that emphasise creativity, strategy, and interpersonal skills.
A recent Gartner poll further found that 95% of customer service teams intend to retain human agents to help define and guide the role of AI, reinforcing the value of a “digital first, not digital only” approach. Gartner further says that by 2027, half of the organisations that planned to significantly reduce their customer service workforce will abandon those plans, highlighting the limits of going fully “agentless”.
For African countries, the rise of digital labour presents an opportunity to build modern, inclusive workforces without being bound by outdated development models. But realising this potential depends on sustained investment in skills training, digital infrastructure, and equitable access to AI tools.
Train for tomorrow
Africa has the world’s youngest population. It’s bursting with entrepreneurial energy. But many young people still don’t have access to the tools and skills that will define the next era of work. If the continent wants to lead in the digital labour revolution, it should act now by investing in digital infrastructure, prioritising skills development, and forging partnerships that make future-focused training widely accessible.
Yes, the skills gap is real and broadband internet is still a luxury in many communities. But on the upside, AI training doesn’t require a university degree. Much of it is free, online, and accessible to anyone with a smartphone and a curious mind.
That opens the door to governments, educators, businesses, and civil society to step up to update school curricula, expand digital infrastructure, and support public-private training partnerships. All of this matters: not just for economic growth, but for social inclusion, too.
If these foundations are put in place, African countries could not only meet the needs of their growing population but also leapfrog outdated development models.
From entry-level to in-demand
When AI begins to handle the simpler tasks, it’s easy to worry about what’s left for those starting out. Entry-level jobs aren’t disappearing though. Instead of doing routine work, newcomers will now need to build skills in oversight, collaboration, and using AI tools effectively from day one. The ladder still exists; it just starts in a different place.
This will require a different kind of training – not just technical know-how, but in soft skills like empathy, adaptability, ethical judgement, and communication, which are all human traits that help teams thrive.
AI’s presence in the workplace may be concerning, with reports of job cuts due to its adoption (here, here, here, and here), but all is not as it seems.
Research suggests a more balanced perspective: One of the most comprehensive studies, from the National Bureau of Economic Research, tracked 25,000 workers across 7,000 Danish firms using AI chatbots. It found no significant changes to jobs, wages, or working hours. Productivity rose by around 3%, without leading to layoffs.
The St. Louis Fed found something similar. Based on large-scale surveys in the US, researchers reported one in four workers now use generative AI weekly, saving on average just over two hours a week. Spread across the entire labour market, that translated into a 1.1% productivity gain. Crucially, there was no sign this efficiency came at the cost of jobs.
Adding to this, a 2024 study by Mäkelä and Stephany analysed over 12 million US job listings and revealed that demand is surging for “AI-complementary” skills such as resilience, teamwork, digital literacy, and analytical thinking. These are the very human capabilities that help people work effectively with AI. The study found AI-focused roles are nearly twice as likely to list these skills, and they command wage premiums of 5–10%. Even more telling: the positive impact of these complementary skills outweighs the substitution effects of AI by up to 70%.
These findings all suggest that AI isn’t replacing workers; it’s helping them work smarter and more efficiently. To thrive in this blended future, we need to prepare today, by building the right skills, expanding access, and embracing AI not as a threat, but as a partner in progress.
Because the future of work won’t be entirely human, nor entirely automated – it will be a blend of both.
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