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.
The GSM Association (GSMA) has urged African governments to reduce taxes and levies on entry-level smartphones as part of efforts to accelerate digital inclusion and ensure millions of Africans are not excluded from the emerging artificial intelligence (AI) revolution.
The association warned that about 961 million Africans who are currently covered by mobile broadband networks are not using the services due to affordability challenges, particularly the high cost of smartphones.
The call was made at the Digital Africa Summit, organised by GSMA in partnership with the African Telecommunications Union (ATU), which brought together regulators, policymakers and industry stakeholders to discuss strategies for improving connectivity and driving digital transformation across the continent.
Speaking at the event, Caroline Mbugwa, senior director, Public Policy and Communications, GSMA Africa, said affordable smartphones and reliable connectivity were essential for unlocking the benefits of AI across sectors including healthcare, education, transport and commerce.
Mbugwa noted that while mobile broadband coverage has expanded significantly across Africa, a large number of people remain unable to access digital services because they cannot afford smartphones.
She stressed that fiscal reforms, particularly the removal of taxes on entry-level devices, were urgently needed to make smartphones more accessible to low-income users.
According to her, South Africa’s decision to remove a nine per cent luxury goods tax on entry-level smartphones helped accelerate adoption of smart devices and reduce dependence on feature phones.
“We are now entering what we call the era of intelligence, and the era of intelligence requires that we have an already existing robust infrastructure, robust connectivity that can support the growth of artificial intelligence on the continent.
“We have a whole 961 million Africans that are covered by mobile broadband services but are not using the service. This is what we refer to as a usage gap. If this remains unaddressed, it means that this number will be left behind when it comes to the adoption of AI.
“This signals that there is demand for adoption of smart devices. Customers are willing to actually use the service. Affordability is the challenge,” she said.
Also speaking, Michaela Angonius, head of Global Policy and Regulatory Team at GSMA, said African countries must adopt policy reforms that encourage investment, expand connectivity and reduce barriers to digital access.
Angonius, who oversees global regulatory and policy issues covering areas such as fiscal policy, competition and network deployment, cautioned against adopting a one-size-fits-all approach to reforms across the continent.
She said findings from the Digital Africa Index showed that while some countries, including South Africa, had made significant progress, others still needed deeper regulatory reforms to improve their digital ecosystems.
She identified three major areas requiring attention: modernising licensing frameworks, improving the use of Universal Service Fund (USF) resources and adopting smarter approaches to quality of service regulation.
According to her, many African countries still operate technology-specific licensing systems, which do not align with the rapid evolution of digital technologies.
Angonius advocated for technology-neutral licensing frameworks that would allow different communication providers, including satellite operators, mobile network operators and internet service providers, to operate under the same regulatory principles.
She explained that the growth of satellite services had exposed weaknesses in existing licensing structures, as regulators often struggle to determine how to classify new technologies.
On Universal Service Funds, Angonius said the existence of unused funds in many countries effectively creates an additional tax burden on telecom operators, which eventually increases costs for consumers.
She warned that such additional costs could worsen the digital divide at a time when Africa is already struggling with smartphone affordability and connectivity challenges.
The GSMA executive also called for a review of quality of service regulations, arguing that countries with the best digital service quality are not necessarily those with the most detailed regulatory requirements.
She said governments should instead focus on policies that encourage investment, expand coverage to underserved communities and improve access for people who remain disconnected.
Angonius further advised finance ministers across Africa to remove levies placed on entry-level smartphones to lower the cost of first-time device ownership.
“Those countries with the best quality of service are not necessarily the countries that have detailed quality of service regulation. Rather, they have focused on how to get the investment right.
“If you have a levy on any handset, firstly, if you can, as a finance minister, remove it. If you can’t, at least remove it from those entry-level handsets that should be affordable for everyday users,” she said.
She added that Nigeria, like other African countries, could benefit from reforms that promote investment, address societal needs and ensure consumers gain long-term value from digital transformation.
Airtel Africa has confirmed that the London Stock Exchange is its preferred listing venue for Airtel Money in 2026, as the group looks to unlock value from its fast-growing fintech business.
The highly anticipated listing aims to maximise market opportunities, with analysts reportedly anticipating a valuation of around $10 billion.
The announcement came as the telecoms operator reported strong first-quarter (Q1) results on Thursday, with surging data usage and mobile money transactions driving double-digit revenue growth across its markets.
The group reported revenue of $1.85 billion, up 31% in reported currency and 21.1% in constant currency, underscoring robust demand for digital and financial services.
Mobile money remained a standout performer, reinforcing its role as a key growth engine. Total transaction value reached an annualised $245 billion, up 51.5%, while the customer base grew 23.3% to 56.5 million users.
“Our focus on deepening financial inclusion through increased customer adoption, broader use cases and a stronger digital payments ecosystem enabled higher usage and facilitated continued average revenue per user growth, reinforcing Airtel Money’s growing role as a trusted digital financial services provider,” the company said.
Sunil Taldar, CEO of Airtel Africa, said the company is leveraging digital platforms, data and artificial intelligence to enhance customer experience and support long-term growth.
“We have started this year with another pleasing performance. Our continued focus on the customer experience translated into accelerating customer base growth across all business segments,” he said.
Taldar said a London listing would provide access to a broader international investor base and support the telco’s ambition to unlock long-term value from one of Africa’s leading fintech platforms.
Data usage per customer rose from 7.8GB to 10.6GB per month, driving a 56.3% increase in network traffic, while smartphone penetration reached 51%, reflecting continued digital adoption.
Accelerated network investment drove capital expenditure (capex) of US$389 million, up from $121 million in the corresponding period last year.
“Supported by an elevated pace of deployment, we added more than 920 sites during the quarter, our highest first-quarter site rollout, while further expanding our fibre network to 82,100km,” the company said.
Airtel’s cost-efficiency programme supported EBITDA margin resilience, with the margin remaining at 50.1% in Q1.
However, the company warned that higher energy costs linked to geopolitical developments could increase inflationary pressures and weigh on margins in the near term.
Despite this outlook, the operator said its investment programme remains on track, with spending brought forward to support demand and capture growth opportunities linked to Africa’s digital transformation.
TikTok says it removed more than 4.8 million videos in Nigeria for violating its Community Guidelines during the first quarter of 2026 as part of efforts to create a safer digital environment for users.
The platform disclosed this in its Q1 2026 Community Guidelines Enforcement Report, which highlighted increased investments in artificial intelligence (AI)-powered moderation systems, live-stream safety, content authenticity and AI literacy.
According to the report, the 4.8 million videos removed between January and March represented only 0.6 per cent of all content uploaded by Nigerian users during the period, indicating that the overwhelming majority of content complied with the platform’s rules.
TikTok said 99.8 per cent of the violating videos were removed proactively before being reported by users, while 92.8 per cent were taken down within 24 hours of being posted.
Globally, the platform removed more than 184 million videos during the same period, accounting for only 0.5 per cent of all videos uploaded worldwide.
TikTok said the figures reflected continued investment in advanced moderation technologies capable of detecting harmful content before it spreads widely across the platform.
The company also reported stronger enforcement measures for TikTok LIVE, saying it suspended 120,000 LIVE sessions in Nigeria for violating its Community Guidelines.
The figure represents an increase of 40,000 suspended LIVE sessions compared with the previous reporting period.
Globally, TikTok recorded more than 58 million LIVE enforcement actions, including the suspension of 50,791,858 LIVE sessions and warnings or demonetisation issued to 21,966,667 LIVE creators for breaching platform policies.
According to TikTok, warning notices provide creators with opportunities to correct policy violations before stronger sanctions are applied.
The platform attributed part of the success of its enforcement operations to close collaboration with government agencies, including Nigeria’s Office of the National Security Adviser (ONSA), as well as civil society organisations working to promote online safety.
TikTok said it was strengthening efforts to combat the misuse of artificial intelligence for producing misleading or spam content.
According to the report, the platform is testing enhanced detection systems capable of identifying accounts dedicated to publishing AI-generated spam.
Globally, TikTok removed more than 86 million fake accounts during the first quarter of 2026.
In Nigeria, the company disclosed that it removed more than 118,000 pieces of content under its policy governing edited media and AI-generated content (AIGC).
TikTok said it had also reached a major milestone by labelling more than three billion AI-generated videos globally using a combination of Content Credentials, creator disclosure tools and invisible watermarking technology.
The company said the measures are designed to improve transparency by helping users identify content created or substantially modified using AI technologies.
It reiterated that harmful or misleading AI-generated content remains prohibited under its Community Guidelines.
TikTok also announced a number of initiatives unveiled during the AI for Good Global Summit in Geneva aimed at promoting responsible AI use.
The company said it had joined the Coalition for Content Provenance and Authenticity (C2PA) Steering Committee, where it will collaborate with industry partners to develop standards that improve transparency around AI-generated content.
To promote responsible AI use, TikTok said it partnered with the National Association for Media Literacy Education (NAMLE) and AI expert Henry Ajder to develop educational resources for users.
As part of the initiative, the platform said it would launch a new in-app AI Literacy Hub for Nigerian users in the coming weeks.
According to TikTok, the hub will provide educational resources to help users identify AI-generated content and better understand how AI tools are being used on the platform.
The company also disclosed that it has committed more than 4 million U.S. dollars to its AI Literacy Fund since the initiative was launched in November 2025.
In Nigeria, TikTok said it continues to work with organisations including the Centre for Journalism Innovation and Development (CJID) and Paradigm Initiative to produce locally relevant AI literacy content.
According to the company, the partnerships have generated more than 200 million views, reflecting growing public interest in trustworthy AI education.
TikTok said it remained committed to improving transparency through regular publication of its Community Guidelines Enforcement Reports.
The company added that it has redesigned the reports to make them easier for users to navigate while expanding the number of countries for which detailed enforcement data is available.
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