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Nigeria May Re-introduce Telecom Tax to Obtain new $750m World Bank Loan

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Nigeria may reinstate a previously suspended telecom tax and other fiscal measures as it seeks to secure a new $750 million loan from the World Bank, as per Nairametrics report.

Nigeria May Re-introduce Telecom Tax to Obtain new $750m World Bank Loan

This is according to the Stakeholder Engagement Plan for Nigeria – Accelerating Resource Mobilisation Reforms (ARMOR) P-For-R (P177308) program dated March 2024, between Nigeria and the World Bank.

A copy of the plan’s document was obtained and seen by Nairametrics suggest the government reintroduces the excises on telecom services, EMT levy on electronic money transfers through the Nigerian Banking System among other taxes.

President Bola Tinubu in July 2023 ordered the suspension of the 5% excise duty on telecommunications and the Import Tax Adjustment levy on certain vehicles.

However, it appears that this suspension may be lifted to meet the program targets for a new, yet-to-be-approved World Bank loan.

Nairametrics has confirmed that negotiations are ongoing between the Federal Government and the World Bank.

The program’s development objective is to strengthen the government’s financial position by enhancing its capacity to manage and mobilize domestic resources effectively, which includes improving tax and customs compliance and protecting oil revenues.

Affected stakeholders and sectors

The planned tax reforms under the ARMOR program are expected to have significant implications across various economic sectors.

According to the plan, affected stakeholders will include manufacturers of goods such as alcoholic beverages, tobacco products, and sugar-sweetened beverages (SSBs), telecom and banking service providers, as well as the general tax-paying public.

Importers and international traders will also feel the impact of these new fiscal policies.

Key industry groups such as the Association of Licensed Telecom Operators of Nigeria (ALTON) are engaged regarding the excise duties on telecom services.

The banking sector, represented by the Committee of Bankers, are engaged regarding the introduction of an Electronic Money Transfer (EMT) levy on transactions processed through Nigerian banks.

Additionally, the Manufacturers Association of Nigeria (MAN) will play a crucial role, particularly for those involved in producing targeted products such as tobacco and alcoholic beverages.

The plan document read:

“Domestic Revenue Mobilisation drive in the government ARMOR program seeks to increase revenue on some targeted industries and sectors of the economy. Specific groups and agencies within affected sectors include

“1. Association of Licensed Telecom Operators of Nigeria: The introduction of excises on telecom services requires that all telcos are mobilised to fully participate in the collection of such revenue.

“2. Committee of Bankers: Introduction of EMT levy on electronic money transfers through the Nigerian Banking System would need the buy-in all banking institutions

“3. Manufacturer’s Association of Nigeria: Manufacturers of tobacco products, sugar sweetened beverages(SSBs) and alcoholic beverages who would be required to collect excises on their products are critical stakeholders for the introduction of the new excise regime. They are currently organised into various sectoral groups under the Manufacturer’s Association of Nigeria (MAN). Producers of alcoholic beverages organised under the Distillers and Blenders Association of Nigeria also need to key into the reforms

“4. Importers: Strategic partners involved in importation of different items into the country will be mobilised to participate in the ARMOR program. A key stakeholder group is the Association of Nigeria Customs Agents (ANCLA).

“5. Vehicle Importers and Manufacturers: Stakeholders in the automobile trade industry must be engaged on reforms involving the introduction of green taxes on high GHG emission vehicles. Local manufacturing and assembly of vehicles is growing through a phase of growth in Nigeria. The demand for vehicles is mostly met through importation by vehicle importers under the aegis of Association of Motor Dealers of Nigeria (AMDON).”

The document also emphasized the importance of engaging vulnerable groups to ensure they are not disproportionately affected by these changes.

It also said:

“Services that will be subjected to the newly introduced excises are regulated by key public sector agencies. The introduction of the new revenue measures will require the application of existing regulatory mechanisms available within these institutions. The concerned institutions include

“1. Nigerian Communication Commission

“2. Central Bank of Nigeria.

“There are also agencies with the mandate for making policies on some of the issues covered in the ARMOR program with respect to policy framework on matters of public interest in Health and Environmental Protection. The government institutions relevant to ARMOR in this regard are.

“1. Federal Ministry of Environment

“2. National Environmental Standards Regulatory and Enforcement Agency (NESREA)

“3. Federal Ministry of Health”


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Telecom

Telecom Services Risk Shutdown as Workers Embark on Strike

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Nigeria’s telecom sector is at risk of shutdown as workers under the aegis of Private Telecommunications and Communications Senior Staff Association (PTECSSAN) have embarked on strike over sack, and poor working conditions among others.

Telecom Services Risk Shutdown as Workers Embark on Strike

Gbenga Adebayo, chairman, ALTON

This was as the union on Monday threatened to cripple telecommunications services nationwide.

Okonu Abdullahi, secretary-general, made this known in a statement on Monday while announcing the commencement of the strike.

Gbenga Adebayo, chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), reacting to the development, said that the group is unknown to its members which include MTN, Globacom, Airtel, 9-mobile and other telcos in the country.

But Abdullahi, said that the action of his union “ has become inevitable because of the prevalent precarious working conditions our members are enduring in the sector, the refusal of the employers to recognise and respect the constitutional right of these workers to freely associate with the union, and the unjust sack of three members of the union,”

He noted that its members are over 800 working at various Nigeria telecoms company facilities, network centers and other critical telecommunications, including IHS and Huawei.

The union, among other things, is demanding the reinstatement of some of its sacked workers, recognition of the union, improved working conditions, and remittance of membership dues.

“The implications of the strike will be massive because we have told all our members not to respond to any service outage from our employers.

“The fact remains that there are outages every day, and if our engineers do not respond to those outages, subscribers in those areas will be affected,” he said.

However, Adebayo of ALTON, said that “This group is not known to us in ALTON, and the companies mentioned are not members of ALTON”,


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NCC Unveils DMS to Protect Mobile Phone Users

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Nigerian Communications Commission (NCC) has announced the introduction of a Device Management System (DMS) aimed at bolstering security and protecting consumers in the country’s mobile device market.

NCC Unveils DMS to Protect Mobile Phone Users

It said the DMS will serve as a comprehensive Central Equipment Identity Register, creating a unified database for tracking and monitoring mobile devices across all network operators in Nigeria.

The new regulation, outlined in the ‘Type Approval Business Rule 2024’, aims to prevent phone theft, curb the use of counterfeit devices, and ensure compliance with established standards.

All mobile network operators are required to connect to the DMS and mirror network-related policies configured by the NCC, ensuring a uniform approach to device regulation.

This move is expected to significantly improve the security and integrity of Nigeria’s communication networks, protecting consumers and promoting a safer mobile ecosystem.

“NCC-DMS shall acquire the International Mobile Equipment Identity of all devices latching to the communication network and synchronize with international databases of IMEI repositories.

“NCC-DMS shall maintain a registry of all communication devices available in the Federal Republic of Nigeria,” the commission noted in the new rule.

A device registration fee was also introduced by the NCC for the NCC-DMS, separate from existing type approval fees. This fee will be mandatory for all registered devices.

The commission’s objective, first announced in 2021, is to enhance transparency, accountability, and national security in the telecommunications sector while ensuring the safe and efficient utilization of Nigeria’s communication infrastructure.

“To curtail the counterfeit mobile phone market, discourage mobile phone theft, enhance national security, protect consumer interest, increase revenue generation for the government, and reduce the rate of kidnapping.

“To mitigate the use of stolen phones for crime, and facilitate blocking or tracing of stolen mobile phones and other smart devices, one of the means to achieve this is through the deployment of Device Management System,” the commission said in a statement.

 

 

 

 


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Telecoms Workers Begin Nationwide Strike

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Workers in the nation’s telecommunications industry under the aegis of the Private Telecommunications and Communications Senior Staff Association (PTECSSAN) will today (Monday) begin an indefinite nationwide strike over sack, and poor working conditions among others.

Telecoms Workers Begin Nationwide Strike

Among the employees going on strike include field maintenance engineers, transmission engineers, customer service engineers, fibre engineers, and other critical staff.

There are fears that strike could disrupt telecommunications services nationwide if not resolved quickly.

PTECSSAN had given notice of the strike in a statement signed by Mr Okonu Abdullahi, its general secretary.

Abdullahi said the strike had become necessary following alleged anti-labour practices including the refusal of the employers to recognise and respect the workers’ constitutional rights to freely associate with the union.

He alleged also that three members of the union were unjustly sacked. He said: “We shall not be suspending the planned indefinite strike action until our demands, which are as follows, are met:

“Immediate reinstatement of the three unjustly sacked workers: Sotola Sunday Kolawole, Ulu Ikechukwu Christopher and Alex Franklin C.”

“Immediate recognition of the fundamental right of the employees to freely associate with the union, “ he said.

According to the general secretary, other demands include immediate recognition of the union as the negotiating body for the employees on workers welfare.

He said also that the union was demanding the immediate remittance of membership dues into its account as earlier provided among others.

“We hope that these companies will utilise the seven-day window of this notice to meet our demands and avert the indefinite strike action,” Abdullahi said


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