Telecom
NCC Stays with Consumers in the Face of 5 Per cent Excise Duty
Recently at a stakeholders’ meeting in Abuja, organised by the Nigerian Communications Commission (NCC), the federal government disclosed her resolve to commence the implementation of five percent excise duty on telecommunications services in the country.
According to Mr. Zainab Ahmed, the Minister of Finance, Budget and National Planning, through Frank Oshanipin, the Assistant Chief Officer in the ministry, “the five per cent excise duty has been in the Finance Act 2020 but hasn’t been implemented. The delay in implementation was as a result of government’s engagement with stakeholders”.
He further said that the duty rate wasn’t captured in the Act because it is the responsibility of the President to fix rate on excise duties and has fixed five per cent as the duty rate for telecommunication services, which include, GSM services.
Oshanipin added: “It is public knowledge that our revenue cannot run our financial obligations, so to that effect we are to shift our attention to non-oil revenue. The responsibility of generating revenue to run government lies with us all.”
The Role of NCC in the 5% Excise Duty
NCC is the federal government agency that regulates telecommunications sector of the country’s economy. It is wrong for anybody to attribute the 5 percent excise duty on telecommunications service to the commission. That NCC organised the stakeholders’ meeting where the announcement was made does not mean that it came from the Commission.
As stated in the presentation made by the representative of minister of Finance, the five per cent excise duty is contained in the Finance Act of 2020 and the percentage determined by the President.
However, the Commission opposed the implementation date of the duty as stated in the opening remarks of Prof. Umar Garba Danbatta, the Executive Vice Chairman/CEO of the Nigerian Communications Commission, who was represented at the meeting by Adeleke Adewolu, the Executive Commissioner, Stakeholders Management: “As communicated in the federal government Circular of March 1, 2022, the five per cent Excise Duty was to have been implemented as part of the 2022 Fiscal Policy Measures, but the industry considered the earlier scheduled commencement date of June 1, 2022 inadequate and we duly took this up with the federal government.”
More so, in opposition to the excise duty Prof Isa Pantami, minister of Communications and Digital Economy, also rejected the planned implementation of the five percent excise duty on the telecommunications sector by the Federal Government.
The minister faulted the timing and process of imposing the tax on the industry, arguing that part of the responsibility of responsive government is not to increase the problems of the citizens.
Speaking at a forum organised by the Nigeria Office for Developing the indigenous Telecom Sector (NODITS), an agency domiciled in the Nigeria Communications Commision (NCC), he said he is not in support of excise duty.
“I have not been contacted officially. If we are, we surely will state our case. The sector that contributes to the economy should be encouraged,” Pantami said. “You introduce excise duty to discourage luxury goods like alcohol. Broadband is a necessity.
“If you look at it carefully the sector contributes two per cent excise duty, 7.5 per cent VAT to the economy and you want to add, more” he said, adding hardship at this time cannot be tolerated.
He urged the tax masters to expand the scope of other sectors that are not contributing to the economy to do so.
“We must come together and salvage the sector. Only telecom sector contributed 13 per cent and you want to add more.”
Pantami faulted the lawmaking process that produced the harsh tax because it didn’t involve the chairman of the House Communications Committee. “So, we reject it,” he said.
According to him, further tax on the sector will impact on its contribution to the country’s Gross Domestic Product (GDP).
NCC on Reduction of Tariff in the Industry
The commission has over the years demonstrated that consumers of telecommunications services must be treated fairly and protected from incessant tariff increase by operators.
It is on record that NCC has implemented policies and programmes that give consumers voice in expressing their dissatisfaction of services or treatments by operators such as consumer outreach programmes among others.
Through effective regulatory efforts, it has ensured that the cost of making calls has crashed from around N70 per a minute to around N20 per minute. The commission has prevented mobile network operators from just increasing tariff any-how, and that tariff or promotions of any kind that may lead to traffic increase are reviewed by NCC to ensure they are fair to consumers.
Interestingly, a reverse of common trends in the country where price increases never come down is witnessed in telecommunications sector as calls and data cost have consistently been going down from where it used to be. This is a testament of NCC’s consumer -centric approach to regulation of the industry.
The commission has also revealed plans to reduce the price of data to N390 per Gigabyte by 2025, as contained in the Nigeria National Broadband Plan. And is assiduously working to realise this objective. Among such efforts is its plans to introduce a licencing framework for the establishment of Mobile Virtual Network Operators (MVNOs) in Nigeria, which will lead to the massive penetration of broadband services to the unserved and underserved areas of the country.
Just recently, ALTON wrote a letter to the NCC, calling for an upward review of the cost of SMS from N4 to N5.61k and voice call termination rate from N6.40k per minute to N8.95k per minute. The operators said the move to increase the cost of telecom services became necessary due to the high cost of delivering telecom services across networks, coupled with the harsh business environment and the continuous rise in the cost of various items in various sectors of the Nigeria economy among others.
However, the commission responded by issuing a statement to allay subscribers’ fears over the planned hike of the voice call, SMS, and data service costs by 40 per cent.
According to the statement, “For the avoidance of any doubt, and contrary to MNOs’ agitation to increase tariffs for voice and Short Messaging Services (SMS) by a certain percentage, the commission wishes to categorically inform telecoms subscribers and allay the fears of Nigerians that no tariff increase will be effected by the operators without due regulatory approval by the commission.”
The statement read: “The demand being made by MNOs under the auspices of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), citing the high cost of running their operations as the major reason for their proposed tariff hike, is contained in a letter to the commission.
“Consistent with international best practice and established regulatory procedures, the NCC ensures its regulatory activities are guided by regular cost-based and empirical studies to determine the appropriate cost (upper and floor price) within which service providers are allowed to charge their subscribers for services delivered.
“The commission ensures that any cost determined, as an outcome of such transparent studies is fair enough as to enhance healthy competition among operators, provide wider choices for the subscribers as well as ensure the sustainability of the Nigerian telecoms industry.”
NCC noted that tariff regulations and determinations were made by the commission in line with the provisions of Sections 4, 90, and 92 of the Nigerian Communications Act (NCA) 2003, which entrusts the commission with the protection and promotion of the interests of subscribers against unfair practices including but not limited to; matters relating to tariffs and charges.
NCC said the current tariff regime administered by the service providers was a product of NCC’s determination both for voice and SMS in the past.
Mr. Khalil Suleiman Halilu, Executive Vice Chairman and Chief Executive Officer (EVC/CEO), National Agency for Science and Engineering Infrastructure (NASENI), has underscored the importance of effective resource management, emphasizing the Agency’s responsibility in administering public funds for the benefit of Nigeria.
L-R: Coordinating Director, Engineering Infrastructure Directorate, NASENI, Prof Bagudu Gwandangaji; Support Officer/NASEN Desk Officer, OAGF, Mr. Mustapha Marafa; Deputy Programme Manager, System Support and Sustainability Directorate, OAGF, Mr. Jeremiah Asanato; Executive Vice Chairman/CEO of NASENI, Mr. Khalil Suleiman Halilu; Coordinating Director, Finance and Accounts, NASENI, Alh Ibrahim Baba Dauda; Coordinating Director, Science Infrastructure Directorate, NASENI, Prof Umaru Gaya during a one-day sensitization workshop on Government Integrated Financial Management Information System (GIFMIS) policy and guidelines for financial managers organised by the National Agency for Science and Engineering Infrastructure and the Office of the Accountant General of the Federation held at NASENI Headquarters in Abuja on Tuesday, May 14, 2024.
The EVC stated this while declaring open one-day sensitization workshop on Government Integrated Financial Management Information System (GIFMIS) policy and guidelines for financial managers of NASENI in collaboration with the Office of the Accountant General of the Federation (OAGF) held at the Agency’s headquarters in Abuja on Tuesday, May 14, 2024.
The workshop was aimed at enhancing financial management practices for NASENI principal officers, directors, managing directors and accounting officers system-wide.
Urging the participants to take the workshop with all sense of purpose, the EVC/CEO called for accurate financial record-keeping and the adoption of innovative processes which remain integral in the GIFMIS policy. He stressed the significance of staff training and capacity development to ensure the discharge of duties to make NASENI a preferred public sector employer in Nigeria.
While warning staff on classified documents, Mr. Halilu said confidentiality in financial management is a crucial aspect and called for strict adherence to public service regulations regarding the integrity of official information.
He further emphasized the Agency’s 3Cs initiative of Collaboration, Creation, and Commercialization as NASENI’s core operating principles, expressing confidence in achieving the Agency’s goals in alignment with the Renewed Hope Agenda of President Bola Ahmed Tinubu.
The Deputy Programme Manager, System Support and Sustainability Directorate, OAGF, Mr. Jeremiah Asanato, giving overview of the GIFMIS, said it is aimed at integrating budgeting and government expenditure. He emphasized that the policy will help to address irregularities, corruption, and other fraudulent activities in government Ministries, Departments and Agencies (MDAs).
In his vote of thanks, Coordinating Director,Finance and Accounts, NASENI, Alh. Ibrahim Baba Dauda, appreciated all Finance and Accounts Directorate staff from across NASENI centres system-wide for attending the workshop. He challenged them to start thinking of making NASENI an independent revenue-generating agency.
Telecom
Annual General Meeting: Nigeria Set to Host the 2025 Edition of the Network of African Data Protection Authorities’ Conference
Nigeria Data Protection Commission (NDPC) is to host the 10th edition of the prestigious Network of African Data Protection Authorities’ (NADPA-RADPA) Conference and Annual General Meeting.
This significant decision was made during the 9th NADPA Annual General Meeting held in Nairobi, Kenya, where Nigeria, through NDPC under the exemplary leadership of the National Commissioner/CEO, Dr. Vincent Olatunji, emerged as the successful bidder to host this prestigious event.
The Network of African Data Protection Authorities (NADPA-RAPDP), founded in Ouagadougou in September 2016, consists of 23 (Twenty-Three) Data Protection Authorities across Africa. Its primary objective is to establish a platform for exchanges and cooperation among its members while amplifying Africa’s voice in global partnerships.
Nigeria joined the network in 2022 and has been actively engaged since then, including taking on the role of coordinator for the Regulatory Harmonization working group during the recently concluded annual general meeting in 2024.
The 9th NADPA–RADPA Conference and Annual General Meeting, hosted by the Office of the Data Protection Commissioner in Nairobi, Kenya, was marked by an impressive turnout, with over 1500 individuals and organizations in attendance.
Noteworthy participants included multinational corporations such as Google, Amazon Web Services, EY and Microsoft, as well as development partners which included the European Union, German Corporation, GIZ, and Digital Transformation Center among others.
The 2025 edition will serve as a pivotal platform for Data Protection Authorities from across Africa to convene, collaborate, and share insights on emerging trends, challenges, and best practices within the data protection and privacy ecosystem.
Furthermore, it will bolster Nigeria’s economic growth by attracting Foreign Direct Investments and contribute to the enhancement of the country’s tourism sector by providing delegates with opportunities to explore its offerings.
Moreover, hosting such a prestigious event will elevate Nigeria’s reputation as a hub for innovation, research, and academic excellence, thereby attracting additional investment and talent, while serving as a prime opportunity to showcase the country’s diverse industries, products, and services to a global audience.
Additionally, the conference will facilitate capacity building and skill development in digital technologies, empowering individuals and organizations with the knowledge and tools required to thrive in the current global digital economy.
As the host country, Nigeria is deeply honored to welcome esteemed delegates and participants to this significant gathering. The conference serves as more than just a platform for sharing insights, it highlights Nigeria’s unwavering commitment to advancing data protection principles and fostering international cooperation in this crucial field.
Collaborating with various Government Agencies, Multinational Corporations, and Development Partners, NDPC is poised to co-host this event. With its multifaceted agenda, the conference promises to ignite growth, foster collaboration, and drive advancement within the data protection landscape and beyond.
Bernhard H. Mayer, QNET’s esteemed luxury brand, on Wednesday announced the launch of the OMNI Watch, a pioneering addition to its exquisite collection that blends top-tier elegance with environmental consciousness. As part of the launch, QNET has reinforced its commitment to sustainability by partnering with eco-focused organizations to plant trees for every OMNI Watch sold, amplifying the brand’s impact on global reforestation efforts.
The OMNI Watch comes in seven distinct variants, each featuring straps made from Thermoplastic Polyurethane (TPU) and bodies crafted from 85% recycled steel. This design not only exemplifies durability and flexibility but also showcases the brand’s dedication to reducing environmental impact, aligning with the latest consumer preferences for sustainable luxury products.
“In developing the OMNI Watch, we were driven by our vision of integrating eco-friendly practices with our longstanding tradition of excellence in watchmaking. This product is for those who want it all – style, sophistication, and a sustainable lifestyle,” said Trevor Kuna, Chief Transformation & Reputation Officer at QNET.
To kickstart the tree-planting initiative, 1,500 trees have already been planted — 500 in Cairo, Egypt, in collaboration with Shagarha, and 1,000 in Amizmiz, Morocco, in partnership with the High Atlas Foundation. These efforts are part of QNET’s larger Green Legacy Programme, a reforestation campaign that has successfully planted over 10,000 trees worldwide in the past two years.
“Each OMNI Watch sold translates directly into more trees planted, further enhancing our global canopy and contributing to the communities we serve. Through these actions, we reaffirm our commitment to the planet and our customers, ensuring that our luxury products leave a positive legacy,” added Kuna.
Amina El Hajjami, Director of Programs for the High Atlas Foundation, emphasized the scale and future potential of this initiative: “Planting trees plays a crucial role in our commitment to preserving biodiversity and advancing sustainable practices. With QNET’s invaluable support, we’ve achieved significant environmental benefits in the Amizmiz region.
“The planting of these initial 1,500 trees marks just the beginning. We are eager to intensify our efforts, planting additional trees in the coming months to further our environmental objectives.”
The OMNI Watch is available for purchase through QNET’s exclusive distribution network, offering consumers around the world a chance to partake in luxury that leads to a greener tomorrow.
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