Telecom
Lagos Pockets Some N4.6Bn from Telcos in 2019
A research conducted by the Nigerian Communications Commission (NCC) has shown that Lagos State earned a total of N4.6 billion from different kinds of charges from telecoms operators in 2019.
The study examined the quantum of taxes, levies, and fees collected by state governments and their impact on the digital economy agenda of the Federal Government.
The report stated that the Lagos State Government collected the highest amount of taxes, fees, and levies from telecoms operators in Nigeria.
The telecoms companies that submitted the amount paid as taxes, levies, permits, and fees to Lagos State Government included Airtel, MTN, 9mobile, IHS Nigeria, VDT Communications Limited, and ATC Nigeria.
Analyses of the report showed that MTN paid N4.52bn to the state government; Airtel paid N75.72m; and 9mobile paid N11.6m.
Also, IHS Nigeria, a telecom infrastructure service provider company, paid N66.12m to the Lagos State Government in 2019.
VDT, an Internet service provider, paid N2.84m while ATC Nigeria, a telecoms infrastructure company, paid N2.08m.
Findings showed that Lagos State accounted for 32.36 per cent of the total taxes, levies, and fees collected by all states in the country.
Next to Lagos State, the study revealed that Gombe State collected 10.29 per cent of the total taxes, levies, and fees of all the states, followed by Delta State with 8.91 per cent.
The study found that taxes charged by state governments on telecommunications operators in Nigeria have a negative impact on their expansion and coverage of unserved areas.
It said, “This was shown in the positive relation that existed between state-level taxes and high unserved areas within the state.
“Nevertheless, other bills and charges such as fees, permits, and others have a positive impact and result in lower unserved areas within the state. Levies as studied do not have a statistically significant impact on unserved areas.”
Analysts at the NCC recommended a review of the government policy on taxation in order for the country to fully reap the socio-economic benefits of the telecommunications sector.
The report said, “Government clearly has a right to impose taxes on businesses that operate and benefit from the public amenities, infrastructure and social services it provides. The expectation however is that a balance can be struck between the legitimate expectations of government and the certainty and fairness businesses expect for them to pursue and achieve their business objectives.
“Uncertainties over taxes and levies affect investment decisions and the anticipated taxes and levies are expectedly built into the cost of services and products and ultimately passed on to subscribers. There is, therefore, a need for urgent action on multiple taxation of the telecoms industry.”
The commission said due to the critical nature or services provided by the telecoms sector to the Nigerian economy, there was a need for urgent action to address the taxation challenges in order to avoid a slump in the sector and Nigeria in general.
The regulatory body advises the government to pursue the implementation of the National Tax Policy and the establishment of a Telecom Finance Corporation to provide additional investment for the industry.
It called on the Nigeria Governors Forum to ensure the implementation of the resolution of the National Executive Council on multiple taxation and regulation.
Telecom
Huawei Plans Data Centre in Nigeria to Boost Local Cloud Capabilities
Huawei Technologies, a Chinese information and communications technology (ICT) infrastructure provider, has unveiled plans to launch a significant new data centre in Nigeria, a move that is expected to bolster the country’s cloud infrastructure and support its growing digital economy.
This announcement was made by David Olaiya, head of Cloud Fintech Business Development for Huawei Nigeria, during Nigeria Fintech Week, in Lagos.
The new data centre is expected to strengthen Nigeria’s position as a hub for tech innovation in West Africa.
Scheduled to become fully operational by October 31, 2024, the facility, called ‘Cloud Site’ is designed to provide comprehensive data storage and computing services.
By keeping data within Nigeria’s borders, this initiative aims to align with the country’s data protection policies, which mandate that all user data be stored locally.
This is especially critical for sectors like finance and telecommunications, where data security is paramount.
Many Nigerian businesses, particularly those that have relied on international cloud services, often face compliance challenges when it comes to storing and processing sensitive user data.
These companies have had to send their data across borders, raising concerns about data security and regulatory adherence.
The launch of Huawei’s data centre aims to directly address these issues by allowing businesses to manage their data domestically, ensuring compliance with the Nigeria Data Protection Regulation (NDPR).
“This centre ensures data sovereignty, offering Nigerian businesses a competitive advantage by keeping sensitive information within the country,” Olaiya stated.
The launch of the data centre comes amid the growing influence of Huawei’s cloud services among Nigerian banks. Reports have emerged that major Nigerian banks including UBA Zenith Bank, Opay, First Bank and others are opting for Huawei’s cloud storage solutions, positioning it as a strong competitor to IBM, which has been a longtime leader in banking technology in Nigeria. The shift by these banks reflects the rising trust in Huawei’s cloud capabilities and its growing influence within the financial sector.
Olaiya also emphasized that the new centre will offer more than just local data storage. It is expected to significantly reduce latency, providing faster access to cloud services, which is crucial for real-time operations such as digital payments and mobile banking.
In addition to data compliance, he noted that the centre will be backed by local technical expertise, which will be key in providing timely support to Nigerian enterprises. Huawei plans to have a dedicated team on the ground, alongside its global 24/7 support infrastructure. This combination of local and global resources promises to deliver seamless service, enabling companies to troubleshoot issues more efficiently and reduce the risks associated with downtime or technical failures.
While this is a milestone for Huawei, Nigeria already hosts data centres from global tech giants such as Amazon Web Services (AWS) and Microsoft Azure.
However, Huawei’s entry into the local cloud landscape is poised to bring additional benefits.
The ‘Cloud Site’ will be part of Huawei’s extensive global network, which spans 93 availability zones in 33 regions around the world, including existing data centres in South Africa and Egypt.
The Nigerian data centre will be linked to Huawei’s other key locations, including facilities in Johannesburg, South Africa, and Dublin, Ireland.
This global integration is expected to not only serve as a critical resource for established businesses in Nigeria, but also to support Africa’s digital transformation in broader terms, creating new opportunities for startups, especially in sectors like fintech, e-commerce, and artificial intelligence (AI), where local data processing can drive innovation.
In a related initiative, Huawei Cloud announced in April 2024 its plan to support 100 Nigerian startups over the next two years.
This commitment includes providing these startups with cloud resources and technical assistance to help them scale their operations and bring new products to market.
Meanwhile, the Nigerian government has also demonstrated its commitment to data infrastructure, with plans to inaugurate a national data centre by May 2024.
This facility, which will have a storage capacity of 1.4 petabytes, is intended to securely store critical national data, including biometric information of Nigerian citizens.
Overall, Huawei’s entry into Nigeria’s data centre market is set to complement these efforts, further establishing the country as a regional leader in cloud computing and data services.
Telecom
NCC to Introduce Revised Governance Code for Sustainable Telecom Practices
Nigerian Communications Commission (NCC) is preparing to issue a revised corporate governance code, updating the 2016 version with a key focus on the introduction of mandatory sustainability reporting for telecom operators, according to Dr. Aminu Maida, executive vice chairman of the commission.
Maida said that the initiative is aimed at aligning the sector with global environmental, social, and governance (ESG) standards, promoting greater transparency and supporting sustainable development within Nigeria’s telecommunications landscape.
He, disclosed this during his address at the 2024 Annual Corporate Governance Conference in Lagos, State, themed “Corporate Survival and Sustainability: The New Face of Governance.”
The sustainability reporting involves organisations disclosing information about their ESG performance.
This practice provides stakeholders—including investors, customers, and regulators—with insights into how telecom operators manage risks and opportunities related to sustainability. Key components include reporting on carbon emissions, resource usage, labour practices, community engagement, and data privacy.
Maida emphasized the importance of sustainability in corporate governance, highlighting that “such practices are no longer optional but essential for the long-term success of telecom companies.”
He presented findings from a comprehensive NCC analysis evaluating corporate governance among telecom operators. Key indicators examined included board composition, diversity, effectiveness, ethical conduct, compliance, risk management, and corporate social responsibility.
The analysis revealed a strong correlation between effective governance and regulatory compliance, with companies not excelling in governance facing poor financial performance.
Telecom
Samsung Unveils New Galaxy A06 dubbed ‘Galaxy Wey Sabi’ Nigeria – Nigeria
Samsung Electronics has officially unveiled the latest addition to the popular Galaxy A series smartphones – the Samsung Galaxy A06.
Joining a fan favorite series and combining powerful performance with a sleek design, the Galaxy A06 offers customers and loyal A series fans unique features and premium experience at an affordable price.
The stylish Galaxy A06 is set to redefine what users expect from entry-level smartphones, offering cutting-edge technology without compromise.
Aptly, tagged “Galaxy Wey Sabi”, the Galaxy A06 stands out in the competitive category as it aims to resolve the customers’ needs in a smartphone with focus on durability, functionality, security, camera, and entertainment.
Users can enjoy capturing high-resolution photos with the 50MP rear camera, now equipped with Nightography for capturing the essence of every detail especially in low-light conditions. The 8MP front and 2MP (depth) cameras also provide crystal-clear selfies with advanced beautification features.
Spotting a slimmer design and comfortable grip, as well as a side fingerprint scanner, the new Galaxy A06 features a stunning 6.7” HD+ display, providing vivid colors and crisp clarity for an immersive viewing experience that delivers seamless visuals on the infinity-U display with enhanced brightness, especially for outdoor visibility.
Galaxy A06 – Galaxy Wey Sabi is truly a device, which understands your needs, equipped with a 5000mAh long-lasting battery, you can enjoy more device usage without worrying about battery life. The 25W Super-Fast Charging feature ensures up to 50% battery charge in just 30mins, meaning you are back in action quickly.
“The Samsung assurance is a promise, a trustworthy reliability in our Knox Security on this device, which protects your personal information by isolating your passwords and other private data within a secure environment,” said Stephen Okwara, Head Product Management, Samsung Electronics West Africa. “What also awesome about this is our promise of continuous OS upgrades and up to 4 years security update on this device. Isn’t that impressive from a brand that understands the needs of its customers?”
Also speaking at the Galaxy A06 launch event in Lagos, Oge Maduagwu, Head of Marketing, Samsung Electronics West Africa said: “We are excited to introduce the Galaxy A06, which brings together powerful performance, an advanced camera, and long-lasting battery life, all in a stylish and affordable package,” She added: “Also customers can enjoy premium support for their device with a screen damage insurance cover of just N9000.
Available in four stunning colors – Black, Blue Green, Lime and Silver – The Samsung Galaxy A06 will be available in Nigeria at all authorized Samsung Stores from 11th October 2024, with pricing starting at N146,000.
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