Editorial
Multiple Taxations Choking Telecom Companies
Finding a lasting solution to the problem of multiple and illegal taxation will enhance growth in the telecoms sector.
We know that globally, telecommunications industry is one of the most taxed economic sectors and the same is true of Africa and Nigeria.
African governments, according to findings, will earn an estimated $71billion in tax revenues paid by mobile operators by 2012.
It was also estimated that an additional 43 million people could get connected by 2012, leading to an increase of $930million in tax.
But the current heavy taxes imposed on telecoms companies at the federal, state and local government levels, have been a major obstacle, which retards economic growth, limits profits, compromises quality of service and slows network expansion.
Experts also believe that high taxation is responsible for the slow pace of digital penetration and connectivity in the rest of sub-Saharan Africa. According to GSM Association, an organisation of more than 700 mobile phone operators in more than 220 countries, supported by over 178 equipment manufacturers, mobile telephony taxations in sub-Saharan Africa account for 35 per cent of revenues of mobile operators in Nigeria
In addition to the statutory taxes levied on operators, telecommunications operators pay Annual Operating Levy (AOL) of certain percentage of earnings to the Nigerian Communications Commission (NCC) and are required in addition to pay various rates and charges to other Federal Government agencies (e.g. Consumer Protection Council, Nigeria Lottery Commission, federal and state ministries of environment etc), authorities in every state and local Government in which they operate.
Also the police and thugs, who supported the drive of the multiple tax imposers made it difficult to resist them
Only recently, Association of Licensed Telecommunication Operators of Nigeria, (Alton) picked holes in the nation’s tax structure, saying the ugly menace of multiple taxation has to be removed to attract more investors into the nation’s telecoms industry.
Gbenga Adebayo, chairman of the group said that “our members are constantly harassed, their base stations and offices locked indiscriminately by governments, especially at the lower tiers over alleged refusal to pay taxes and levies.
“Our major challenge stem from the activities of states and local governments. Members have brought documents evidencing requests for taxes and levies that are, in our view, outside of what is prescribed by law. We hear also with evidences from our members, instances where state and local government authorities have physically invaded offices, locked up base stations and employed other unwholesome tactics to enforce these taxes and levies,” he said.
As he cried out, ,Titi Omo-Ettu, president, Association of Telecommunications Companies of Nigeria, (Atcon), said that the telecoms industry was distressed as against the popular, but false belief that telecoms firms were making excessive profit.
According to him, it is the false belief that makes everybody, including state and local governments to impose frivolous, unfair and sometimes illegal taxes on telecoms firms.
Adebayo and Omo-Ettu believe that the immediate and long term effects of discouraging business include a negative impact on ability to create new jobs due to high operating costs, loss of revenue for government in terms of taxes which can be legally obtained, slow or no economic growth, economic distress, closure of businesses and others.
In what seems as part of efforts to tame the multiple taxation problems in the country, the federal executive council on January 20, 2009 adopted a draft National Tax Policy for Nigeria, which was expected to grow tax revenue at all tiers of government, enhance government revenue from non-oil tax and also increase transparency and accountability in tax management.
The policy was also to provide a new set of guidelines, rules and modus operandi that would regulate Nigeria‘s tax system and provide a basis for tax legislation and administration in the country. Most importantly, the policy was aimed at curbing multiple taxation.
We agree with Alton and Alton that there should be certainty in rates and certainty in the mechanism of collection.
Rates should be as enshrined in statutes and government rather than tax consultants should collect taxes the higher the consultants the more the fees.”
There is also need to highlight the consequences of multiple taxation which includes the relocation of businesses outside Nigeria evident in the manufacturing sector of the Nigerian economy, downsizing and retrenchment of staff, unemployment and loss of revenue to government.
Editorial
NDPC Boss Nominated for Global Privacy Assembly’s Giovanni Buttarelli Award 2024

Dr Vincent Olatunji, National Commissioner and Chief Executive Officer of Nigeria Data Protection Commission (NDPC), has been nominated for the Giovanni Buttarelli Award 2024. The award through the Global Privacy Assembly recognises an individual’s outstanding leadership and exceptional efforts in fostering international collaboration.

Dr Vincent Olatunji
This nomination highlights Dr Vincent’s commitment to driving innovation, expanding global partnerships, and promoting a collaborative approach within the data privacy and protection ecosystem.
Under the visionary leadership of Dr Vincent, the Data Privacy ecosystem in Nigeria has witnessed a remarkable growth through key milestones such as deepening the knowledge of data protection and privacy in all public and private institutions, judicial recognition of adequacy principle in cross-border data transfer, playing key roles in regional and global data privacy ecosystem, commencement of bilateral cooperation with other jurisdictions, licensing of data protection compliance organisations, commencement of national data protection certification process, among others.
Dr Vincent’s strategic and innovative initiatives has been instrumental in forging strong international partnerships, driving sustainable growth, fostering a culture of collaboration which has not only propelled the NDPC to new heights but also set a benchmark for international cooperation and industry standards.
The Giovanni Buttarelli Award celebrates leaders who have demonstrated exceptional leadership and/or promoted collaboration at a regional or international level in the field of data privacy and protection.
Nominees are evaluated based on their contributions to projects that has led to the development of innovative concepts or practices, which have significantly impacted the thinking in the international data protection and privacy community, partnerships, and initiatives that enhance global cooperation and development.
In his response to his nomination, Dr Vincent Olatunji expressed his gratitude and emphasised on the importance of collective effort in achieving global progress. “I am deeply honored to be nominated for the Giovanni Buttarelli Award 2024” said Dr Vincent.
“This recognition is a testament to the hard work and dedication of our entire team at NDPC. It underscores the power of collaboration and the remarkable outcomes we can achieve when we work together across borders.
“I am excited to continue our journey, driving innovation and fostering partnerships that make a positive impact globally,” he said.
Editorial
Telcos Ask NCC to Allow Them Hike Tariff

Telecoms operators including MTN, Airtel and Globacom have pushed for cost-reflective tariff in view of extant economic realities.

This was contained in a statement jointly released by the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON) on Thursday.
The statement was co-signed by Gbenga Adebayo; chairman, ALTON and Tony Emoekpere, president, ATCON.
The telcos called upon the government to take decisive action in addressing the numerous challenges confronting the telecommunications industry.
The telcos said telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades.
“Despite the adverse economic headwinds, the telecommunications industry remains the only industry yet to review its general service pricing framework upward in the last (11) years, primarily due to regulatory constraints.
“For a fully liberalized and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence.
“ATCON and ALTON call upon the government to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability,” the statement partly read.
Regarding the Nigerian Communications Commission (NCC), the telcos also said regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector.
“Statutory provisions lend credence to this notion, as a lack of an impartial regulator will lead to a failure to maintain public confidence in the objectivity and independence of its decisions,” the statement added.
Editorial
FG Reiterates Commitment to Achieving 17 SDGs

The federal government has reiterated its commitment to achieving all the 17 Sustainable Development Goals (SDGs) to promote economic growth and eliminate poverty in Nigeria.

The Minister of Special Duties and Intergovernmental Affairs, Senator George Akume, gave the assurance at a news conference on Tuesday, in Abuja ahead of the “Inaugural Partnership Economy Summit”, scheduled for September 14 and 15.
According to Akume, the primary purpose of the summit is to diversify the economy, promote rural growth, as well as generate sustainable jobs for the youths.
Achieving this, the minister emphasised on partnership with other stakeholders as it was the responsibility of his ministry to achieve the aim of its mission and the creation.
“The framework for the upcoming summit, guided by the principles of Public Social Private Partnership (PSPP) is being designed to develop, promote a multi-Iayered collaborative socio-economic platform for the government, the business sector as well as the civil society.
“In order to achieve this, President Muhammadu Buhari established the ministry with the mandate to develop and implement policies, programmes and projects for the effective and efficient delivery of the gains of Economic Growth and Recovery Plan,” Akume said.
He said the ministry was also charged with the mandate of collaborating with the private sector to create employment for a large number of Nigerian youths, adding that it is also meant to implement a strategy towards the realisation of the president’s June 12 promise to take 100 million Nigerians out of poverty in 10 years.
“Nigeria is among the countries in the UN that signed a pact to implement the SDGs by 2030, in the words of Ban Ki-Moon, former Secretary-General of UN in 2016.
“Nigeria is not left out in its plan towards achieving the SDGs, and how far has Nigeria gone to achieving the 806 goals is part of the questions that the upcoming summit seeks to address,” Akume explained.
He stated that to tackle the issue of poverty and unemployment, the ministry is in partnership with a number of stakeholders, including the Ministry of Industry, Trade and Investment; and Small and Medium Enterprises Development Agency of Nigeria.
Others are Raw Materials Research and Development Council, National Orientation Agency, Association of Local Government of Nigeria and SDGs Nigeria as well as MYK Psymmons Solutions Limited to come up with achievable solutions to all the challenges.
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