Connect with us

Telecom

NCC Stays with Consumers in the Face of 5 Per cent Excise Duty

Published

on

Kindly share this post

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

Advertisement

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.

Advertisement

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.”

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

Kindly share this post

Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

General News

MENXTT TECH NG Offers Affordable Dell Laptops with Flexible Payment Plans

Published

on

Kindly share this post

MENXTT TECH NG, a Lagos-based technology company, has launched an initiative to make quality Dell laptops more affordable for Nigerians through flexible payment plans and extended warranty support.

MENXTT TECH NG Offers Affordable Dell Laptops with Flexible Payment Plans

The company said the initiative was aimed at helping students, entrepreneurs, professionals and small businesses acquire reliable computing devices despite rising technology costs.

According to the company, customers can now purchase premium pre-owned Dell Latitude, Dell Precision and Dell Inspiron laptops at competitive prices, with selected models available under staggered payment arrangements.

The laptops, it said, are designed to meet the needs of users ranging from students and office workers to architects, engineers, software developers, graphic designers and video editors.

Speaking on the initiative, the Co-Founder of MENXTT TECH NG, Mr Anthony Emeka Nwosu, said access to quality technology should not be limited by financial constraints.

Advertisement

“A laptop is no longer a luxury; it is an essential tool for education, business and career development.

“Unfortunately, many people are forced to settle for unreliable devices because of the high cost of new laptops.

“At MENXTT TECH NG, we want to bridge that gap by providing durable Dell business laptops at affordable prices, backed by a full one-year warranty and flexible payment plans.

“We want every student, entrepreneur, freelancer and business owner to have access to technology that helps them succeed,” he said.

Nwosu explained that every laptop undergoes comprehensive testing before delivery and comes with a one-year warranty, an original charger, a complimentary laptop bag, Windows 11 operating system and Microsoft Office Suite pre-installed.

Advertisement

He added that the company, an authorised Bitdefender Antivirus reseller in Nigeria, also installs genuine Bitdefender security software on every system to protect customers against cyber threats.

According to him, customers requiring additional productivity tools can also have licensed Foxit PDF software installed on their devices.

Nwosu said the flexible payment option was introduced in response to prevailing economic realities, enabling customers to spread payments over an agreed period.

He noted that the arrangement would make it easier for students, startups and growing businesses to acquire quality computers without placing excessive pressure on their finances.

Beyond laptop sales, the company provides information technology consultancy, computer repairs, software licensing, cybersecurity solutions and digital transformation services to organisations across Nigeria.

Advertisement

He reaffirmed the company’s commitment to supporting Nigeria’s digital economy by making dependable computing devices and enterprise technology solutions more accessible to individuals and businesses.

According to him, the initiative reflects MENXTT TECH NG’s vision of combining affordability, quality products and professional after-sales support to help more Nigerians participate in the country’s expanding digital ecosystem. (NAN)

Kindly share this post
Continue Reading

Telecom

ATU Summit Ends in Abuja with Landmark Declaration to Eradicate Continental Digital Divide

Published

on

Kindly share this post

African ministers responsible for Information and Communication Technology (ICT) have adopted the 2026 Abuja Declaration on Meaningful Connectivity for Africa, committing member states to accelerate internet access in rural, remote and underserved communities across the continent.

ATU Summit Ends in Abuja with Landmark Declaration to Eradicate Continental Digital Divide

The declaration was adopted at the Seventh Ordinary Session of the Conference of Plenipotentiaries of the African Telecommunications Union (ATU), held in Abuja.

The agreement seeks to address Africa’s widening digital divide by promoting policies and investments that will improve digital infrastructure, stimulate demand for internet services and ensure equitable access to digital opportunities.

In a statement endorsed by the participating member states, the ministers noted that Africa continues to lag behind other regions of the world in internet connectivity despite rapid global digital expansion.

The declaration, signed by Nigeria’s Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, who assumed the role of Chairperson of the conference, highlighted the urgency of expanding digital inclusion across the continent.

Advertisement

According to the statement, global internet usage has reached about 68 per cent, rising to as much as 94 per cent in high-income countries, while internet penetration in Africa remains slightly above 38 per cent, the lowest among all regions of the International Telecommunication Union (ITU).

The ministers expressed concern that the disparity continues to limit socio-economic development, innovation, education, healthcare delivery and access to digital public services for millions of Africans.

They agreed that closing the connectivity gap, particularly in underserved communities, should become a continental priority requiring coordinated action by governments, regulators, development partners and the private sector.

The declaration establishes a framework centred on expanding digital infrastructure, increasing broadband adoption, stimulating demand for digital services and promoting equitable access to connectivity.

It also encourages member states to implement policies that will improve affordability, strengthen digital skills and create an enabling environment for sustainable investment in telecommunications infrastructure.

Advertisement

“Affirming that closing Africa’s connectivity and usage gap, particularly in rural, remote and underserved communities, is an urgent continental priority,” the declaration stated.

The conference further called on international development partners, industry stakeholders and civil society organisations to align their investments and programmes with the African Union’s Agenda 2063 and the Digital Transformation Strategy for Africa.

The ministers expressed optimism that stronger regional collaboration would accelerate digital transformation, foster inclusive economic growth and ensure that more Africans benefit from opportunities created by the digital economy.

Kindly share this post
Continue Reading

Telecom

Clydestone Ghana Sues MTN Over Mobile Money

Published

on

Kindly share this post

Clydestone Ghana Plc has filed a writ of summons and statement of claim against MTN Ghana, MTN Group Limited and Mobile Money Fintech Limited, alleging unauthorized use of its intellectual property.

The company announced the court action at the Ghana Stock Exchange, confirming proceedings in the Commercial Division of the High Court of Ghana.

The case relates to work commissioned in 2007 that Clydestone alleges was later used without authorisation or compensation.

Clydestone said the claim involves proprietary intellectual property, confidential commercial information and operational methodology developed during the engagement. The company is seeking declarations, damages and equitable remedies.

In a statement, Clydestone said MTN Ghana engaged it in 2007 to develop a commercial and operational framework for a mobile money business.

Advertisement

“The work was developed and delivered by the company’s founder and Group CEO, Paul Jacquaye, and included a full mobile money ecosystem covering the commercial model, operational architecture, implementation methodology and business case.”

Clydestone said the work was commissioned on the understanding that a non-disclosure agreement and memorandum of understanding would be signed.

It alleges these agreements were not finalised despite repeated requests.

The company further alleges MTN Ghana later used its proprietary work and methodology without authorisation or compensation, including in MTN Mobile Money Ghana and other markets.

Clydestone said the alleged use has continued since the launch of MTN Mobile Money Ghana in 2009.

Advertisement

“The wrongful use of that work has been ongoing since 2009. What has changed is the availability of independently verifiable information that documents its scale and commercial significance,” the company said.

It cited the GSMA State of the Industry Report on Mobile Money 2026 and MTN Ghana’s 2025 annual report as evidence of the platform’s scale.

According to Clydestone, the reports show approximately 19.3 million active users and annual revenue of about GHS 6.0 billion ($516m).

The company said it reviewed its records following these publications and concluded there were sufficient grounds to initiate legal proceedings.

It added that it has received no payment or acknowledgement for the work since December 2007, and that pre-action correspondence in 2026 received no substantive response.

Advertisement

“The Board of Directors has unanimously authorised the commencement of these proceedings,” the company said.

Jacquaye said: “This case is about accountability for commissioned intellectual property.

“When independent publications in 2025 and 2026 revealed the scale of the mobile money business, we reviewed all documentation relating to the original engagement and concluded these proceedings were necessary.”

MTN Group Limited, named as a defendant, had not commented at the time of publication.

 

Advertisement

Kindly share this post
Continue Reading

Trending