Telecom
Indigenous Telcos Seek 5 Years Tax Holiday, Special Intervention Funds

Indigenous telecommunications companies in Nigeria have appealed to the Federal Government to give them tax holidays of up to five years and a special intervention funds.

This, they said, would allow them to compete favourably with bigger players who had enjoyed the same benefits in the past.
The operators, who appealed at a virtual forum on the National Policy for Promotion of Indigenous Content in the Nigerian Telecommunications Sector, said local players in the telecom sectors deserved pioneer status incentives, which should include tax and duty waivers on their importations.
According to them, these incentives were enjoyed by the GSM operators when they newly got their licenses in 2001 and led to their rapid growth.
Speaking at the forum, Mr. Chidi Ibisi, executive director, Business Development at Broadbased Communications Ltd., said aside from tax waivers for the small players, the telecom sector was seriously in need of intervention from the government.
According to him, the sector needs special funds like the Nigerian Content Intervention Fund (NCIF) supervised by the Bank of Industry. “We need a similar Fund as NCIF with a seven per cent interest rate, 10 to 15 years’ loans and equity participation,” he said.
Ibisi said indigenous players need seed funds, increased subsidies, incentives for local device manufacturers (including duty waivers for equipment and components), pioneer status for indigenous players in manufacturing, services, research and development, and innovation fund.
The Broad-based Communications chief said in other climes, they make some special intervention funds available to indigenous players.
For instance, Ibisi said in the USA, there is a $65 billion Broadband Fund, which comprises $42.45 billion for a new Broadband Equity, Access and Deployment program focused on connecting un-and underserved areas; a $1 billion grant programme targeting middle-mile infrastructure; and $14.2 billion for an affordable connectivity subsidy programme.
According to him, in the UK, there is a £30 billion broadband expansion program, while Germany has a $14.5 billion Digital Infrastructure Fund and $10 billion for broadband expansion.
Referring to the New National Broadband Plan (2020-2025), which requires $5 billion for implementation, Ibisi said national backbone and metro fibre of 80,000km would cost $1.5 billion; 4G roll out targeting 2,500 base stations is expected to gulp between $1-2 billion; 5G roll out with 6,000 base stations is pegged at $500 million; local manufacture of devices to cost $100 million.
He recalled that there have been power and aviation funds via the Bank of Industry of about N300 billion, with a seven per cent interest rate, and between 10 and15 years tenure.
According to him, there has been a $37 billion Infrastructure Fund of the Infrastructure Corp of Nigeria (InfraCorp), managed by four asset managers with $2.4 billion seed capital from the Federal Government. He added that there was also the Nigerian Content Intervention Fund (NCIF) supervised by the Bank of Industry.
“We need similar fund as NCIF with seven per cent interest rate, 10 to 15 years loan and equity participation; equity participation by InfraCorp; subsidies and grants, and pioneer status for five years (Tax Waivers and Duty Waivers),” Ibisi stressed.
Corroborating Ibisi at the forum, Mr. Oluwole Adetuyi, chief executive officer of Swift Telephone Network, said for the indigenous operators to grow, the sector would require access to funding for telecoms from financial institutions at low interest rates.
“We need easy access to FOREX at Central Bank of Nigeria (CBN) approved rate, and provision of special intervention funds for the telecoms sector by CBN – as has applied to other sectors,” he noted.
He said tax waivers, as well as the provision of grants and subsidies to telecoms operators, would help the small players grow. Adetuyi also called for the reduction and harmonisation of Right-of-Way charges across states and local government areas.
While calling on the Nigerian Communications Commission (NCC) to put in place a strong local content policy because of the need to create employment, increase FDIs, improved technology adoption, enhanced security and revenue and forex earnings, Adetuyi, represented by Dare Folorunsho, chief technical officer of the firm, said most PNLs and local telecommunication companies in Nigeria fall into the SME category, accounting for 60 to 70 per cent of jobs in most countries.
Adetuyi claimed that the lack of regulation for healthy competition had created outright dominance of four players in the telecoms industry with a heavy legacy load that makes new technology adoption very slow.
“If Nigeria must play in the unfolding IoT market that is in excess of $20 trillion, it must use its local companies with smaller legacy loads to drive faster technology adoption,” he stated.
According to him, there must be urgent reforms, which must promote a regulatory environment conducive to the development of smaller firms as part of the consideration for growth; lesser regulatory burdens on small operators, and NCC should allow the use of Nigerian numbers on a global scale as it is with the USA, the UK Canada, and numbers.
In a keynote at the forum, Prof. Umar Danbatta, executive vice chairman of the Nigerian Communications Commission (NCC), said the Commission had established the Nigeria Office for Developing the Indigenous Telecoms Sector (NODITS) as part of the implementation of the government’s local content policy in the telecoms sector.
According to him, the office is saddled with the responsibility of implementation of the local content policy as well as the Executive Orders 003 and 005.
“With the constitution of the NODITS, the industry should expect new guidelines and regulations bothering on indigenous content, local manufacturing of telecom equipment, outsourcing of services, construction and lease of telecoms ducts, succession planning in the telecoms sector, corporate governance, corporate social responsibility, etc. as the need arises,” said Prof Danbatta, who was represented by Babagana Digima, team lead, NODITS.
The EVC added that the Commission has already constituted a standing licensing review committee that is currently examining all its licenses in an effort not only to modernising them to reflect the current realities of technology and development, but also to consolidate, bundle or unbundle individual licenses or even create new licences.
He said other departments within the Commission were equally saddled with responsibilities that help to inculcate indigenous participation in the telecom sector.
“Efforts being made by the Research & Development and Licensing Departments are worthy of mention in that regard. Under the auspices of the Research & Development Department, the Commission has sponsored research efforts in several universities across the country.
Telecom
X Suspends Twitter Account for Rules Violation

X, the social media platform formerly known as Twitter, has suspended the @Twitter account, replacing its profile with a standard notice citing violation of platform rules.

Musk
The action, which occurred on Sunday, January 11, left users encountering the handle greeted by a bold “Account Suspended” message on a black screen, with no details provided on the specific rules broken or the duration of the suspension.
The development has sparked widespread confusion and nostalgia among users, given that Elon Musk rebranded Twitter to X in July 2023, approximately six months after acquiring the platform for $44 billion in late 2022.
The @Twitter handle had remained dormant since before Musk’s takeover, serving as a legacy remnant of the platform’s original branding, and its suspension appears to mark the final erasure of the Twitter name amid X’s ongoing efforts to combat spam, impersonation, and rule violations.
X’s official statement on the suspended page simply reads: “X suspends accounts that violate our rules,” without offering an appeal process or further explanation, unlike standard user suspensions.
Public reactions on social media ranged from humorous laments of “RIP Twitter” to speculation that the move resulted from automated moderation or a deliberate cleanup of legacy trademarks.
xAI’s Grok AI described it as a purposeful retirement of outdated elements rather than a genuine infraction, while neither Elon Musk nor X spokespeople issued any comment as of Monday morning.
This incident underscores the evolving identity of the platform under Musk’s ownership, which also saw a domain shift to x.com in 2024, further distancing it from its Twitter roots.
Industry observers note that while the suspension aligns with X’s stricter enforcement policies, the lack of transparency has fueled debates on consistency in applying rules to high-profile legacy accounts.
Telecom
FG Plans to Invest $460m World Bank Loan in Fibre Infrastructure

Federal Government plans to channel $460m World bank loan, representing about 92 per cent of a $500m, into the proposed fibre infrastructure company set up to deploy 90,000 kilometres of climate-resilient broadband fibre across the country.

This is contained in the Financing Agreement for the Building Resilient Digital Infrastructure for Growth project between the Federal Government and the International Development Association, the concessional lending arm of the World Bank.
Under the agreement, the World Bank approved a $500m concessional credit to support Nigeria’s drive to expand access to high-quality and climate-resilient broadband internet in unserved and underserved areas.
Of this amount, $460m is earmarked specifically for equity financing and capitalisation of a new Project Company that will drive the fibre rollout. The remaining $40m will cover goods, works, consulting and non-consulting services, training, operating costs, and the refund of a preparation advance used to develop the project framework.
According to the document, the proposed Project Company will be established “as an independent, majority privately-owned and managed special purpose vehicle-joint venture with the objective of the deployment of 90,000 kilometres of climate-resilient fibre infrastructure following a phased approach, limited to provision of wholesale, open access services to licensed telecommunications operators, and management of associated investments, including the carrying out of preparatory activities and provision of transaction advisory services, and provision of equity financing in and capitalization of the Project Company.”
The Federal Government will participate in the company as a shareholder through the Ministry of Finance Incorporated, which manages the government’s investment interests. However, the agreement explicitly caps the government’s shareholding at a maximum of 49 per cent, ensuring that the company remains majority privately owned.
The $460m equity injection is broken into four tranches, tied to strict performance and operational milestones. The first tranche of $150m will be released once the Project Company is incorporated as a joint venture with private partners selected through a process acceptable to the World Bank, and after its memorandum, articles of association, and shareholding agreement are approved.
A second tranche of $100m will only be disbursed after the company adopts fiduciary and administrative procedures approved by the lender and completes at least 5,000 kilometres of fibre deployment. The third tranche of $100m is linked to the completion of an additional 20,000 kilometres of network construction.
The final tranche of $110m will be released after the company launches wholesale open-access services through a published reference offer and completes a further 40,000 kilometres of fibre deployment, bringing the total rollout to at least 65,000 kilometres before the final equity drawdown.
Once each tranche is withdrawn, the agreement requires that the funds be transferred to the Project Company’s dedicated account within five working days, showing the equity nature of the financing rather than traditional budgetary spending.
The project will be implemented under the oversight of the Federal Ministry of Communications, Innovation and Digital Economy, and the Federal Ministry of Finance will receive semi-annual progress updates.
A dedicated Project Implementation Unit will manage day-to-day execution, with overall financial management handled by the Federal Project Financial Management Department in the Office of the Accountant General of the Federation.
Beyond the fibre rollout, the project also includes technical assistance to federal government agencies to support the use of high-quality broadband in targeted areas, as well as funding for project management, monitoring and evaluation, environmental and social safeguards, grievance redress mechanisms and independent audits.
The agreement places strong emphasis on environmental and social standards, requiring compliance with an Environmental and Social Commitment Plan. It also mandates the establishment of an accessible grievance mechanism for affected communities and strict reporting obligations to the World Bank.
Telecom
Court Dismisses N1Bn Suit against MTN, Awards N3m Costs

A Federal High Court in Lagos has dismissed a N1 billion lawsuit filed against MTN Nigeria Communications Plc by Walls and Gates Ltd and Okechukwu Udeichi, its managing director, over alleged copyright infringement, breach of confidentiality, and trademark violations arising from MTN’s 20th anniversary promotional campaign.

Delivering judgement on Tuesday, Justice Ayokunle Faji held that the plaintiffs failed to establish any legally protectable right in their proposal titled “20 for 20”, describing the action as frivolous, speculative, and vexatious.
The court dismissed the suit in its entirety and awarded N3m in costs against the plaintiffs.
The plaintiffs instituted the action under Suit No. FHC/L/CS/1935/2021, alleging that MTN unlawfully used their “20 for 20” proposal, which they claimed to have submitted to the telecoms company on 17 September 2019, ahead of MTN’s 20th anniversary celebration in 2021.
They argued that MTN’s anniversary promotion, in which 20 sport utility vehicles were given out to subscribers, emanated from their proposal and amounted to infringement of their copyright, confidential information, and trademark.
Based on those claims, the plaintiffs sought N1bn in damages or, alternatively, an order directing MTN to render an account of revenue generated from the promotion and remit 50 per cent of it to them.
MTN denied the allegations, contending that the proposal was an unsolicited business idea that imposed no contractual or confidential obligation on the company.
The telecoms firm maintained that its 20th anniversary programme was independently developed and that the plaintiffs’ document was merely a general business concept not protected under Nigerian copyright law.
MTN further argued that the plaintiffs lacked a valid registered trademark and failed to demonstrate access to or copying of any protected expression.
In resolving the dispute, Justice Faji noted that the plaintiffs conceded during oral submissions that they failed to prove their claim of trademark infringement, leaving only the issues of alleged breach of confidentiality and copyright infringement for determination.
On confidentiality, the court held that no confidential relationship existed between the parties.
Justice Faji observed that before sending the proposal to MTN, the plaintiffs had already submitted it to the Nigerian Copyright Commission and relied on it for a trademark application, thereby placing the document in the public domain.
The judge further noted that after transmitting the proposal to MTN, the plaintiffs admitted circulating it to other organisations, which extinguished any claim to confidentiality.
According to the court, MTN had no obligation to respond to an unsolicited proposal in the absence of a contractual, fiduciary, or business relationship, or a non-disclosure agreement.
On the allegation of copyright infringement, the court held that registration with the Nigerian Copyright Commission does not confer copyright, stressing that Nigerian law protects expressions, not ideas or business concepts.
Justice Faji ruled that the plaintiffs’ “20 for 20 Millennium Promotion” amounted to no more than an idea of rewarding customers during an anniversary celebration and lacked the originality and intellectual effort required for copyright protection.
He described the proposal as a bare business concept devoid of original qualities capable of attracting copyright. The judge also held that MTN’s use of the phrase “MTN 20th Anniversary” was a natural description of an anniversary event and did not originate from any protectable work of the plaintiffs.
He further relied on evidence showing that MTN affiliates in other jurisdictions had implemented similar anniversary reward ideas before the plaintiffs’ proposal.
Justice Faji characterised the suit as a “gold-digging exercise” aimed at forcing a commercial relationship on MTN. He criticised the plaintiffs for using MTN’s trademark in their proposal without authorisation and then seeking to ground a billion-naira claim on the same document, adding that the case wasted valuable judicial time.
While affirming that citizens should have access to the courts, the judge stressed that such access must be limited to suits with prima facie merit.
He therefore awarded N3m in costs in favour of MTN, holding that costs must follow the event.
The court accordingly dismissed the suit in its entirety and ordered the plaintiffs to pay the awarded costs to the defendant.
Credit: Punch
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