Telecom
How FG, States & Local Councils Turn Telcos to ‘Cash Cows’

Declining income from the Federation Account due to the fall in oil prices; federal structure and the Constitution authorisation of certain items to be legislated across the three tiers of government, are among the causative factors why the telecoms in the country is over-regulated and multi-taxed.
This formed part of key message by Airtel Nigeria at the recent third quarterly seminar organised by IT reporters in Lagos, Shola Adeyemi, director, Legal & Regulatory Affairs/ Company Secretary, of the Company, noted that “drive to increase internally generated revenue particularly at the State and Local Government levels; and the notion that telecoms is a “cash cow” and should be the main target in raising revenue for state”, should be discouraged.
Adeyemi identified that mis-appreciation of the role of infrastructure in overall socio-economic development by taxation of infrastructure will constrain infrastructure deployment, whereas subsidizing deployment of same will facilitate broader tax revenues from the ensuing value chain of economic activity.
Although, the industry accounted for N640bn in license and spectrum fees & N220bn annually in taxes and regulatory fees; attracted significant Foreign Direct Investment; created over 3m jobs and contributed about N1.58trillion, accounting for 9.8% in GDP growth in second quarter 2016, based on National Bureau of Statistics report, the telecoms sector is heavily taxed.
How States Usurp Telcos On Right of Way
In the presentation, Airtel decried how Kogi, Kano, Delta, Rivers Abia, Oyo, amongst others charged huge fees on right of way, especially on Federal roads that pass through their States.
Although he didn’t state the year or period the fees were charged, but Adeyemi cited examples: “Kogi State Board of Internal Revenue demanded the total sum of N2, 295, 000, 000 as ground rent fees for fibre optic cables laid on Federal roads inspite of the fact that Airtel obtained Right of Way permit from the Federal Ministry of Works; Kano State Urban Planning & Development Authority (KNUPDA) demanded the sum of N196,250,000 as Right of Way fees for fibre optic cables laid along federal Highway. KNUPDA also demanded for the sum of N324, 250,000 as annual planning permit renewal fees inspite of the fact that planning permit is a one-off fee”.
“Delta State Ministry of Environment demanded for the sum of N733,000,000 as Ecology fees for the period 2007 -2015; Rivers State Internal Revenue Services demanded for the sum of N1,600,000 as Premises fitness fees;
“Abia State Ministry of Industry, Science & Technology demanded for the sum of N96,000, 000 as Business Premises permit. Base Stations are classified as Business Premises;
“(Oyo) State Board of Internal Revenue demanded for the sum of N3,000,000 as Business Premises fees.
“National Inland Waterways Authority (NIWA) demanded for a total sum of N1,056,435,750.00 as right of way fees for fibre optic cables laid within the Federal Government’s Right of Way in Northern States inspite of the fact that similar fees had already been paid to Federal Ministry of Works.
Meanwhile, in May 2015, the office of Dr. (Mrs) Ngozi Okonjo-Iwuala, the erstwhile minister of Finance amended the Taxes and Levies (approved list for collection) Act Cap.T2, Laws of the Federation of Nigeria, 2004 (the Act).
By the foregoing, taxes for the Federal, State and Local Governments increased from 8 to 9, 11 to 25 and 20 to 21 items respectively; leading to new taxes such as Land use charge, Entertainment Tax, Environment (Ecology) fee, Infrastructure Maintenance Charge, Fire Service Charge, Property tax, Economic Development levy, Social Service Control levy. Caps placed on taxes such as business premises permit (N10,000) removed.
“The Amendment Order 2015,”Adeyemi said in his presentation, “legitimized multiple taxes & levies bedeviling telecoms industry and gave States unfettered powers to charge arbitrary fees”.
He also lamented that multiple taxation adversely impacts network costs, investment planning and business plan credibility; “Increased OPEX and lost revenue costs around N9bn each year depending on location and length of the shutdown. Adversely impacts other critical sectors (such as health, security, banking services, etc.) with attendant inevitable effect on the economy and affects emergency response and other related services which rely on communications services”.
Effects of Multiple Taxation
“Possible diversion of Foreign Direct Investments to other jurisdictions considered more investor-friendly; industry may not be able to adequately support Law Enforcement Agencies to investigate crimes at affected locations; probable barrier to broadband roll out with attendant adverse impact on internet penetration and services; unconventional tactics employed by the MDAs for the collection of the levies result in damage and injury to operators’ staff and property; and affects accurate business planning and forecasting which is critical for corporate growth”.
Adeyemi further called for political will, persuasive campaigns, cross‐sector and cross‐ministry coordination and executive power to implement and enforce the end of the multiple taxation regime.
“Airtel also aligns with industry stakeholders in canvassing for an implementation of a national strategy that will increase awareness of these issues and educate all about the impact of such acts, including the legal consequences; undertake critical review of current Taxes and Levies (Approved List for Collection); and expedited development and approval of a legal instrument to accord telecommunications networks the status and legal protection of Critical National Infrastructure”.
He said, “At 150m subscriber threshold and 107% penetration (June 16), telecoms plays a key role as an economic enabler and social overhead capital (SOC) with a 7% contribution to GDP.
“Stronger collaboration of relevant stakeholders required to address incidence of multiple taxation in order to ensure that the Quality of Service is improved upon for the ultimate benefit of the country”.
Telecom
NCC Begins Review of Nigeria Telecoms Policy after 26 Years

Nigerian Communications Commission (NCC) has commenced a review of Nigeria’s 26-year-old telecommunications policy, saying the current framework no longer reflects the realities of the country’s fast-changing digital economy.

Aminu Maida, EVC, NCC
Speaking at the national telecommunications policy review workshop in Lagos, Hadiza Usman, special adviser to the president on policy and coordination, said the review had become necessary because Nigeria’s economy, technology ecosystem, and security environment had changed significantly since the national telecommunications policy was introduced in 2000.
“A policy that was fit for purpose in the year 2000 cannot simply be assumed to remain adequate in 2026,” Usman said.
She said telecommunications had evolved beyond voice connectivity and now supports financial technology, digital commerce, education, healthcare, agriculture, innovation, public service delivery, and national security operations.
“Telecommunications is no longer a standalone sector. It is an enabling platform for almost every other sector of national life,” she said.
Usman warned that outdated or poorly coordinated policies weaken implementation, discourage investment, create institutional overlaps, and reduce measurable national impact.
According to her, the revised framework must address broadband penetration, affordability of digital access, quality of service, infrastructure resilience, consumer protection, and inclusion of underserved communities.
“The revised policy must not become another document that sits on shelves. It must become a working instrument,” she said.
The presidential aide also identified fibre cuts, vandalism, multiple taxation, delayed approvals, right-of-way bottlenecks, insecurity, and energy constraints as major obstacles slowing telecommunications infrastructure expansion across the country.
She said resolving the challenges would require coordinated action among federal institutions, state governments, local authorities, regulators, operators, investors, and infrastructure providers.
Earlier, Aminu Maida, executive vice-chairman (EVC) of the NCC, said the telecommunications industry had outgrown the assumptions behind the national telecommunications policy 2000.
Maida said the policy was introduced at a time when Nigeria’s focus was on liberalisation, competition, increased access, and private sector participation in telecommunications services.
According to the EVC, the industry has since evolved into a broader digital ecosystem supporting banking, commerce, education, cloud services, entertainment, digital identity systems, and government operations.
“This is no longer a narrow telecommunications conversation. It is no longer just one sector within the economy; it is a productivity infrastructure for the entire economy,” he said.
Maida added that emerging technologies such as 5G, artificial intelligence, satellite broadband, cloud infrastructure, Internet of Things (IoT), and cybersecurity regulation have further transformed the sector.
He said the review process would also address structural issues including rural connectivity gaps, multiple taxation, vandalism, high energy costs, fibre cuts, and delays in obtaining permits.
“The commission aims to develop a modern policy framework capable of supporting innovation, protecting consumers, improving quality of experience, strengthening investment, and advancing Nigeria’s digital economy ambitions,” Maida said.
The EVC said the workshop was organised to assess implementation of the existing policy, identify gaps, engage stakeholders, and develop recommendations for a new national telecommunications policy 2026.
Telecom
MTN to Turn its African Tower Network Into a Distributed AI Compute Grid

MTN Group plans to convert its African tower estate into a distributed AI compute fabric, installing open GPU infrastructure at base-station sites so that the same hardware can run both the cellular network and edge AI inference workloads.

The plan was set out by Charles Molapisi, group chief technology and information officer, MTN, at an event hosted by law firm Bowmans in Johannesburg recently— the company’s most detailed explanation yet of how it intends to position itself as the infrastructure layer of Africa’s AI economy.
Every cellular tower today has a baseband unit at its base — single-purpose hardware that exists only to drive the radio access network.
Molapisi said MTN will replace these with open GPU configurations capable of running the radio plus AI inference, in what the company has described as a “distributed AI grid.”
A key pay-off, he argued, is latency. AI workloads that today must be hauled back to a central data centre could instead be processed at or near the tower.
He gave the example of children playing PlayStation on an estate served by a nearby tower: with edge compute installed, the workload could be served locally rather than backhauled to a distant data centre and returned, freeing capacity and cutting round-trip time.
The edge layer sits alongside the centralized half of MTN’s AI infrastructure plan.
The group confirmed in its 2025 financial results in March that it will build two new AI-enabled data centres — one in South Africa and one in Nigeria.
Molapisi described an MTN AI strategy spanning a relatively full stack — procuring silicon, building data centres, running its own cloud platforms, curating models and co-developing applications with partners. The company is also building terrestrial fibre across multiple African markets, including some where it has no GSM licence, to plug what Molapisi called the continent’s missing “rails.”
The investments sit inside MTN’s Ambition 2030 strategy, which reorganized the group around three platforms: connectivity, fintech and digital infrastructure. The tower-to-inference push is the most concrete articulation yet of a thesis MTN has been laying out for more than a year — including an investment in March in U.S. AI-native networking start-up ORAN Development Company alongside NVIDIA, Cisco, Nokia, AT&T and Telecom Italia.
At the time, Mazen Mroué, CEO, Digital Infrastructure CEO, framed the move around “sovereign AI” — the principle that African countries should host AI compute locally rather than relying on offshore infrastructure.
Molapisi said MTN is developing the edge AI grid alongside technology partners, with the ambition for MTN to become “the biggest distributor of edge inference in the continent.”
The strategic case rests on Molapisi’s wider argument that Africa risks repeating its commodity history in the AI era.
With about 1% of global computing power on the continent today, he said, Africa stands to “export raw data” the way it has long exported raw minerals — only to import the intelligence built from it at a premium.
Molapisi conceded that chip generations are turning over quickly enough — NVIDIA’s Hopper to Blackwell inside two years, for example — that procurement decisions made today can be obsolete by deployment. He said MTN is being deliberate about its chip mix and the balance between training and inference silicon, “because if you get that wrong, you’ll get the economics terribly wrong.”
Telecom
MTN Nigeria Boosts Public Revenue with N878.7bn Tax Remittance

As Nigeria intensifies efforts to expand non-oil revenue and improve tax collection under its fiscal reform agenda, corporate tax contributions from major private-sector operators are becoming increasingly critical to government financing.

MTN Nigeria
Supporting that drive, MTN Nigeria paid NGN878.7 billion in taxes, levies and duties to federal and state authorities in the 2025 financial year, representing a 15% increase from the previous year, according to the company’s just-released 2025 Sustainability Report.
The trajectory tells its own story: the company paid NGN543.9 billion in taxes and levies in 2023, before that figure climbed to NGN764 billion in 2024 a cumulative rise of roughly 62% over two years, tracking the company’s recovery from deep forex-driven losses to a profit after tax of NGN1.11 trillion in 2025, with total revenue surging 54.8% to NGN5.20 trillion and operating profit climbing to NGN2.08 trillion from NGN778.2 billion.
The NGN878.7 billion remitted to government in 2025 covered corporation tax, value-added tax, spectrum fees, import duties, NCC levies and contributions under the Rural and Urban Terrestrial Infrastructure (RUTI) tax credit scheme, an initiative with deep roots in MTN Nigeria’s public-private partnership playbook.
The company has long embraced such mechanisms: it participated in the Road Infrastructure Tax Credit Scheme, under which it committed NGN202.8 billion towards reconstructing the 110-kilometre Enugu-Onitsha Expressway.
In 2025, the RUTI scheme reached 50% completion after securing approval for an additional NGN23 billion tax credit aimed at expanding fibre and telecoms infrastructure in underserved communities, a model the company argues supports infrastructure development without requiring direct public expenditure.
The report also highlighted the company’s growing domestic economic footprint, with 62% of procurement spending directed to Nigerian suppliers in 2025.
This was up from 59.6% a year earlier. MTN said the policy aligns with the Federal Government’s local-content objectives and supports sectors including civil construction, logistics, software services and power infrastructure.
The company’s operational footprint expanded to 2,087 active base stations nationwide, while active mobile subscribers stood at 85.4 million by the third quarter of 2025. Active data users rose to 51.1 million, supported by smartphone penetration of 65.1%.
During the year, MTN Nigeria renewed its 800MHz spectrum licence for another ten years to December 2034 and secured regulatory approval to lease additional spectrum from T2 Mobile, formerly 9Mobile, across 17 states and the Federal Capital Territory.
General News2 days agoUAE’s Exit from OPEC: Eroding Pricing Power, Saudi Arabia’s Response, and the Implications for Nigeria
General News2 days agoUS to Deploy Wireless Technology in Nigeria, Others
Telecom2 days agoLagos Warns against Fake Emergency Calls, Says Rising Misuse Put Lives at Risk
E-Financial2 days agoCourt Orders Globus Bank to Pay Firm N256m for Breach of Contract
E-Financial2 days agoAFC Invests $100m in Africa-focused Technology Fund Managers
News2 days agoSystems, Not Skin Colour, Hold the Key to Africa’s Development, Says Evans Woherem
General News2 days agoPantami, Ex Minister of Communication Withdraws from Gombe APC Governorship Primaries over Alleged Electoral Violations
Telecom2 days agoGoogle, Blackstone Invest in AI Cloud Venture to Meet Data Centre Demand













