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.
Modern messengers, such as WhatsApp, Telegram, Signal and others, are often used for illicit purposes. Kaspersky Digital Footprint Intelligence has conducted an in-depth monitoring of over 800 blocked cybercriminal Telegram channels between 2021 and 2024.
While a range of illegal activities continues to be hosted on the platform, its environment has become noticeably more challenging for sustained underground operations.
Telegram’s bot framework and other built-in features make for a low-effort ecosystem for the underworld.
A single bot can simultaneously manage queries, process cryptocurrency payments, and instantly deliver stolen bank cards, info-stealer logs, phishing kits, or DDoS attacks to hundreds of buyers per day, often without operator involvement.
Unlimited, non-expiring file storage eliminates the need for external hosting when distributing multi-gigabyte database dumps or stolen corporate documents. This frictionless automation naturally favours high-volume, low-price, low-skill offerings, such as leaked bank cards or other data, hosting malware, etc.
High-value, trust-dependent deals (for instance, zero-day vulnerability information) still remain on reputation-gated dark-web forums.
Kaspersky researchers found two clear trends related to illegal activities on Telegram. The average lifespan of shadow channels has increased, with the proportion of channels surviving over nine months more than tripling in 2023-2024 compared to 2021–2022. At the same time, Telegram’s blocking activity has risen significantly.
Monthly takedown figures recorded since October 2024 – even at their lowest – are comparable to the peak levels seen throughout 2023, and the overall pace continued to accelerate in 2025. This impedes malicious activities.
Other disadvantages of Telegram for cybercriminals include the lack of default end-to-end (E2E) encryption for chats, the inability to use their own servers for communication (due to the messenger’s centralised infrastructure), and closed server-side code, which makes it impossible to verify its functionality.
As a result, several established underground communities, including the nearly 9,000-member BFRepo group and the Angel Drainer malware-as-a-service operation, have already begun shifting primary activity to other platforms or proprietary messengers, citing repeated disruptions of their activities on Telegram.
“Fraudsters find Telegram a convenient tool for many malicious activities, but the risk-reward balance is clearly shifting. Channels are managing to stay online longer than a couple of years ago, yet the dramatically higher volume of blocks means operators can no longer count on long-term stability.
“When a storefront or service disappears overnight – and sometimes reappears only to be removed again weeks later – building a reliable business becomes much harder. We’re starting to see the early stages of migration as a direct consequence,” comments Vladislav Belousov, Digital Footprint Analyst at Kaspersky.
Galaxy Backbone Limited (GBB), the Federal Government’s leading ICT infrastructure and shared services provider, will mark its 20th anniversary in June 2026 with a grand celebration that reflects two decades of innovation, resilience, and national impact.
Since its inception in 2006, Galaxy Backbone has been at the heart of Nigeria’s digital transformation journey; building the technological foundation that supports modern government operations and public service delivery. What began as a bold vision to connect government has grown into a critical national platform that drives efficiency, transparency, collaboration and innovation across the public sector.
Over the last 20 years, GBB has helped redefine how government works. By providing secure connectivity, enterprise-grade data centre services, cloud platforms, and digital collaboration tools, Galaxy Backbone has enabled Ministries, Departments and Agencies (MDAs) to move from fragmented, paper-based processes to more integrated, technology-driven systems.
This transformation has improved government-to-government coordination, strengthened engagement with businesses, and enhanced the delivery of services to citizens. Today, the digital infrastructure powered by Galaxy Backbone supports thousands of government users, hundreds of institutions, and critical national platforms that Nigerians rely on daily.
A key part of this journey has been the Federal Government of Nigeria’s investment, managed by GBB in robust national infrastructure, high-capacity and world class data centres, fibre-optic connectivity across multiple states, secure hosting services, and shared platforms that have helped government operate more efficiently and responsively. These contributions have played a pivotal role in Nigeria’s progress toward a more digital, agile and citizen-centered public service.
Galaxy Backbone’s impact has earned both national and global recognition. In 2025, the organisation was ranked first overall in the Federal Government Website Performance Scorecard, reflecting its commitment to excellence in digital service delivery. Internationally, GBB, a couple of years ago, received the prestigious United Nations Public Service Award, a testament to its leadership in promoting a whole-of-government approach to digital transformation.
As GBB celebrates two decades of service, this milestone is more than an organisational anniversary; it is a celebration of Nigeria’s digital evolution. It is an opportunity to appreciate how collaboration between government, industry partners, technology providers, and dedicated public servants has helped build a stronger, more connected nation.
The June 2026 anniversary celebration will bring together stakeholders from across the public and private sectors to reflect on the journey so far, acknowledge the partnerships that have shaped this success, and chart an ambitious course for the future. It will highlight how collective effort, shared vision, and innovation have positioned Galaxy Backbone as a strategic national asset.
Looking ahead, Galaxy Backbone remains committed to deepening digital transformation across the country; expanding infrastructure, strengthening cybersecurity, enhancing service delivery, and supporting the Federal Government’s drive for a smarter, more efficient and digitally empowered Nigeria.
At 20 years, Galaxy Backbone stands proud of its past, confident in its present, and inspired by the limitless possibilities ahead.
Galaxy Backbone Limited (GBB), Nigeria’s leading federal ICT infrastructure provider, has announced its 20th-anniversary celebration for June 2026, marking two decades since unifying government’s fragmented digital landscape into a secure national platform.
Galaxy Backbone
The announcement by Head of Media and Corporate Communications Chidi Okpala follows GBB’s top ranking in the 2025 Federal Government Website Performance Scorecard by the Bureau of Public Service Reforms, cementing its leadership in digital service delivery and transparency.
Managing Director Professor Ibrahim Adepoju Adeyanju described the milestone as celebrating Nigeria’s shift from paper-based silos to a cloud-first, integrated government. Achievements include the UN Public Service Award for 1-GOV.net, high-speed fiber deployment for G2G and G2B interactions, IPPIS payroll rollout, and pandemic-era digital support.
The June event will gather public-private stakeholders, global tech partners, and policymakers to unveil GBB’s next-decade roadmap emphasising cybersecurity, AI in public service, and rural connectivity.
GBB positions itself at the forefront of Nigeria’s 2030 digital nation drive, with 20 years of innovation signaling a smarter, connected future.
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