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.
Association of Telecommunications Companies of Nigeria (ATCON), has raised the alarm over a diesel supply crisis caused by an ongoing strike by the National Union of Petroleum and Natural Gas Workers (NUPENG).
Mr Tony Emoekpere, president, ATCON in a statement said that the fuel supply disruption is critically affecting telecom base stations, pushing them to the brink of a shutdown and threatening millions of mobile and internet users in the region.
“This strike, which stems from the persistent harassment of tanker and petroleum product drivers by police officers in Lagos State, has effectively halted all truck loading operations and fuel movements,” Emoekpere stated.
He explained that diesel supply to telecom infrastructure has been severely impacted, leaving critical sites with dangerously low fuel levels.
According to him, if urgent measures are not taken, the situation could escalate into a full-blown network blackout, disrupting essential services, including mobile and internet access, business operations, emergency response systems, and daily communications.
ATCON has called on the governors of Lagos and Ogun states to intervene immediately by facilitating the release of diesel from depots to telecom operators to prevent further deterioration of the situation.
“This is not just a telecom issue—it is a national emergency that could cripple economic activities and compromise public safety,” Emoekpere stressed.
The association also appealed to security agencies and petroleum unions to resolve the crisis swiftly to safeguard Nigeria’s connectivity and economic stability.
ATCON emphasised that a prolonged disruption in fuel supply to telecom infrastructure could have far-reaching consequences for both businesses and individuals who rely on stable communication networks for daily operations.
In 2023, Nigerians spent a total of about ₦5.3 trillion on telecommunications services, which includes calls, data, SMS, and other telecom services, according to the Leadership.
Specifically for voice calls, Nigerians made approximately 408.5 billion minutes of local calls, generating around ₦3.28 trillion from outgoing calls and ₦3.23 trillion from incoming calls, totaling about ₦6.51 trillion in call-related revenue according to projections based on 2023 call volumes and tariff data.
However, the ₦5.3 trillion figure represents the overall telecom sector revenue, with voice calls being a major component but also including data and other services.
For individual spending, MTN subscribers spent an average of ₦2,508 monthly on voice calls in 2023, showing a 14.4% increase from 2022, while Airtel customers spent about ₦1,694 monthly on voice calls.
Total telecom spending (calls, data, SMS, etc.): ₦5.3 trillion in 2023
Estimated revenue from voice calls alone: around ₦6.5 trillion based on call minutes and tariffs
Average monthly spending on calls per subscriber: ₦1,694 to ₦2,508 depending on the network
Nigeria’s corporate elite gathered recently to bid farewell to one of the nation’s most influential business titans, Dr. Pascal Gabriel Dozie.
The Nigerian Exchange Group’s headquarters in Marina, Lagos, played host to an ‘Afternoon of Tributes’ that saw industry captains, financial moguls, and family members celebrate the extraordinary legacy of a man who helped reshape Nigeria’s economic landscape.
MTN Nigeria Chairman, Dr. Ernest Ndukwe, captured the mood of the gathering when he described the late Dozie as “a visionary leader, a true patriot, and a trailblazer” whose impact continues to reverberate across Nigeria’s business terrain.
“Thanks to his remarkable foresight and unwavering dedication, MTN Nigeria didn’t just find its footing—it soared,” Ndukwe told the distinguished audience.
“Today, it stands not only as the largest telecommunications company in the country but also as one of the most highly valued corporations on the NGX Premium Board.”
The symbolic bell-ringing ceremony—a highlight of the event—paid homage to Dozie’s pivotal role in transforming both Nigeria’s capital market and telecommunications sector.
Speaker after speaker painted the portrait of a man whose influence transcended conventional boundaries. Beyond founding Diamond Bank and steering MTN Nigeria to unprecedented heights, Dozie was celebrated for embodying the rare combination of business acumen and ethical leadership.
Throughout the afternoon, the late business icon was remembered not merely as a successful entrepreneur but as a nation-builder whose contributions spanned critical sectors from banking and telecoms to public policy and education.
More than his corporate achievements, however, it was Dozie’s personal qualities that dominated tributes—his uncompromising integrity, innovative thinking, disarming humility, and lifelong commitment to service.
As the event concluded, it became clear that the gathering was more than a memorial—it was a celebration of possibilities, a testament to what can be achieved when purpose meets passion and when leadership is firmly rooted in service to others.
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