Telecom
Nigeria Cannot Enforce Tax against Facebook, Others—Expert

Nigeria will find it impossible to place taxes on the transactions of foreign tech companies like Netflix, Facebook, Google, Youtube and other virtual firms without foreign help, Ikemesit Effiong, head of Research at SBM Intelligence, has said.

It will be recalled that the federal government announced its intent to tax OTT’s in the Finance act the president signed earlier in the year.
According to Saharareporters, the legal document, which reviewed the countries tax policies, included any business that “transmits, emits, or receives signals, sounds messages, images or data of any kind by cable, radio, electromagnetic systems or any other electronic or wireless apparatus to Nigeria in respect of any activity including electronic commerce, application store, high-frequency trading, electronic storage, online adverts, participative network platform, online payments and so on, to the extent that the company has a significant economic presence in Nigeria and profit can be attributable to such activity.”
Effiong told SaharaReporters that it would be difficult for the federal government to calculate the Nigerian derived earnings of these companies’ activities.
He is sceptical about how the government will, for example, find out the volume of activities engaged in by Nigeria’s estimated 20m Facebook users and how much each transaction yielded in revenue.
He said countries across the world were discussing how to tax over the top technologies (OTT’s) and virtual firms that do not have end-user telecommunication infrastructure and share the profit.
“The only way I see Nigeria being able to negotiate a tax regime (OTT) will be for them to collaborate with our European and American partners,” he said.
“I can’t think of any African economy – South Africa included– that can do this on their own. Even global powers like the US and the EU are struggling with this.”
Zainab Ahmed, minister for finance, gave clarity on how the government plans to implement the new tax regime by issuing the Companies Income Tax (Significant Economic Presence) Order. The finance minister is also empowered by the law to determine who a SEP is.
In the letter of the order, the first guiding principle in identifying who a SEP is will be to check if the company has sustained interaction with customers in Nigeria or agents of foreign entities based in Nigeria and have an annual earning in any currency whose value comes up to N25m or more.
Firms that fall into this category have been asked by the order to customize their platforms to enable them to receive payment in naira for taxable reasons.
“A foreign entity providing technical services such as training, advertising, supply of personnel, professional, management or consultancy services shall have a SEP in Nigeria in any accounting year if it earns any income or receives any payment from a person resident in Nigeria or a fixed base or agent of a foreign entity in Nigeria,” the act reads.
Education service providers are exempted though. Companies like Facebook, Twitter and Google, that make as much money off traffic as they do from promoted posts, would be difficult to tax, experts believe.
Most of these OTT firms do not have offices in Nigeria.
Those who do only maintain a representational presence and Effiong thinks this is the flaw in the plan.
“If Facebook says we had 17m unique visits, how are you as a country going to quantify and verify it?” he wondered.
Explaining that every taxpaying entity in the country has to open their books to the federal or state revenue boards, Effiong said OTTs have to largely comply, they have to be transparent about the number of Nigerian users they have, the ads those users clicked on, what the monetary cost of those ads was… for tax authorities to be able to assess them.”
Save for a Chinese/Iranian/Russian mode of internet monitoring, the lawyer said it would be impossible for the government to validate the genuineness of the data it is given.
Kenya is another African country that has attempted to levy an OTT. Its revenue authority said in a recent draft regulation that foreign companies offering digital services should register in the country to pay value-added tax or get a tax representative.
Outside Africa, France has been the most desperate to begin charging virtual firms for the number of undeclared profits they earn across the world.
In January, Macron’s government said it was going to go ahead of the EU conversation on the matter to collect three per cent of the global annual earnings of these firms.
That move was swiftly countered by the Trump administration, who threatened to massively heighten excise duties on goods coming out of France. Since then, Coronavirus has stalled the possibility of a joint tax regime for over-the-top technologies in the European Union.
Nigeria and Kenya are chasing the monies that could come from this new pull of cash though. It could be vital funding that would ease the recession fears in Africa’s largest economy.
Telecom
NCC, CBN Unveil Refund Framework for Failed Airtime, Data Transactions

Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN) have finalized a consumer protection framework to swiftly resolve complaints from failed airtime and data purchases caused by network outages, system errors, or user mistakes.

NCC, CBN
Developed after months of consultations with Mobile Network Operators (MNOs), Value Added Service (VAS) providers, Deposit Money Banks (DMBs), and other stakeholders, the framework responds to surging reports of debits without service delivery and prolonged resolution delays.
It unites telecom and financial sectors by pinpointing root causes—like debits without service credits—and enforces a Service Level Agreement (SLA) defining roles for all parties in transactions and refunds.
Key provisions include refunds within 30 seconds for debited but undelivered airtime or data (extendable to 24 hours for pending cases), mandatory SMS notifications on transaction status, and remedies for errors such as recharges to ported numbers, wrong purchases, or misdirected transactions.
NCC Consumer Affairs Director, Mrs. Freda Bruce-Bennett, highlighted a new Central Monitoring Dashboard, co-hosted by NCC and CBN, for real-time tracking of failures, culprits, refunds, and SLA violations.
“Failed top-ups are among the top three consumer complaints. True to our mandate, we prioritized a rapid solution,” she stated.
Bruce-Bennett thanked stakeholders, especially CBN leadership, noting that MNOs and banks have already refunded over N10 billion pending formal approval.
Implementation begins March 1, 2026, following regulator approvals and technical integrations by MNOs, VAS providers, and DMBs.
Telecom
NASENI Launches Inter-Agency Innovation Competition for MDAs

National Agency for Science and Engineering Infrastructure (NASENI) has announced the launch of an Inter-Agency Innovation Competition and Awards to stimulate creativity and technological advancement among Ministries, Departments and Agencies (MDAs) of the Federal Government.

NASENI
In a statement issued on Wednesday in Abuja, NASENI said the initiative was designed to harness innovative ideas from public servants that can drive indigenous industrialization, job creation and national progress.
According to the agency, the competition will provide a platform for MDAs to propose solutions in critical sectors such as health, agriculture, education and infrastructure, leveraging science and technology to improve public service delivery and enhance the quality of life for Nigerians.
“The competition seeks to promote collaboration and creativity among MDAs while addressing pressing national challenges through innovation,” the statement said.
NASENI urged interested MDAs to submit their entries through its innovation portal at naseni.gov.ng/innovation.
The agency reiterated its statutory mission “to develop and maintain a dynamic infrastructure to drive Nigeria’s indigenous industrialization, job creation and national progress,” adding that the competition would further strengthen efforts to unlock the nation’s potential through science and technology.
Telecom
Mandatory Biometric Verification for Starlink Users in Nigeria Begins

Users of satellite internet service provider Starlink in Nigeria are being required to complete a biometric Know Your Customer (KYC) process as a precondition to continue enjoying their services, according to .biometricupdate.

According to local reports, more than 66,000 Starlink subscribers in the country had a December 31 ultimatum from the Nigerian Communications Commission (NCC) to complete the biometric verification or have their connection discontinued.
The process essentially entails linking a Starlkink account with the subscriber’s national digital ID.
The NCC, which is Nigeria’s telecoms industry regulator, is said to have first issued the directive in August last year, setting a three-month deadline which was to elapse on November 19, TechCabal reports.
The body however later extended it to December 31 after consultations with industry stakeholders. The internet account-NIN linkage, the NCC said, is to enhance identity verification and strengthen security within the country’s telecoms space.
Just a few days to the December 31 deadline, Starlink’s Nigeria office sent an email to its subscribers reminding them of the KYC requirement, and warned that all those who fail to comply would be disconnected.
And that once disconnected, reconnection would depend on network capacity in the concerned area.
The service provider said in its email that the process takes less than two minutes and users can complete it by logging in to their account via an app.
One user, quoted by TechCabal, said one needs to upload their selfie biometrics, provide their national identification number (NIN) and then give their consent for the account to be linked to their ID information.
Starlink’s internet service is present in about 155 countries with nine million users, as of 2025. Its growth in Nigeria is said to be rapid, making it the second largest internet service provider in the country, according to The Traffic.
Biometric identification for Starlink subscribers could become a continent-wide trend given that some countries have expressed reservations in opening up their internet space to the company over security concerns.
There’ve been fears that jihadists in countries like Mali and Nigeria may have exploited Starlink terminals to coordinate terror operations, and cybersecurity experts have also warned of risks related to weak regulation, digital sovereignty and data breaches.
The requirement for Starlink internet users to have their accounts linked with the NIN is similar to the SIM-NIN linkage policy which the Nigerian government battled to implement for many years, with many deadline extensions.
In October last year, the NCC, which is was at the forefront of the policy implementation, announced that all active SIM cards across all network providers had complied with the directive which was issued in 2020.
The idea, the federal government argued, was to strengthen security and curb criminality such as kidnappings which are aided and abetted by improperly identified mobile phone numbers.
News2 days agoKaspersky Shares AI Cybersecurity Predictions for 2026
General News2 days agoPalmPay Deepens Its Long-Term Commitment in Nigeria with New Office @ Yaba
Broadcasting2 days agoYouth Talent Takes Center Stage as T2 Ignites High-Octane Rap Battles @ Carnival Calabar
E-Financial2 days agoWema Bank Launches SAW AI Voice Assistant for Seamless Banking on ALAT 2.0
E-Financial2 days agoFidelity Bank Completes N500Bn Capital Raise ahead of Deadline
E-Financial2 days agoKuda Microfinance Bank Releases ‘My Year on Kuda’ 2025 Financial Recap
E-Business2 days agoKonga launches Jara sales with 25% discount on Starlink kits, free delivery
E-Business3 days agoFirm Identifies Global Scam Activity Linked to the Release of Avatar 3

















