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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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NCC Temporarily Suspends Issuance of New Licenses

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Nigerian Communications Commission (NCC) says it has temporarily suspended the issuance of new licenses in some categories.

NCC Temporarily Suspends Issuance of New Licenses

The commission said the categories included interconnect exchange license, mobile virtual network operator license and value added service aggregator license.

Reuben Mouka, director of Public Affairs, NCC,  in a statement in Abuja on Friday, said the commission acted in line with its powers under the Nigerian Communications Act (NCA) 2003.

“This temporary suspension is necessary to enable the commission to conduct a thorough review of several key areas within these categories, including the current level of competition, market saturation and current market dynamics.

“The public is invited to note that during the suspension period commencing on May 17, new application for the aforementioned licenses will not be accepted.

“This is without prejudice to pending applications before the commission will be considered on their merits.

“Any enquiry or clarification in respect of this suspension notice should be forwarded to: [email protected],” NCC said.

 

 

 

 


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Cable Cuts Expose Vulnerabilities in Africa’s Internet Infrastructure

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The vulnerability of East Africa’s countries was starkly revealed once again in the aftermath of the damage inflicted upon an undersea cable, leading to widespread internet outages across the region.

Cable Cuts Expose Vulnerabilities in Africa's Internet Infrastructure

According to Business Day Africa, this incident marks the third cable cut this year, plunging millions of users in Kenya, Uganda, Tanzania, and Rwanda into a state of connectivity limbo.

The disruption caused by the severance of two vital submarine cables- the East Africa Submarine System (EASSy) and Seacom, resulted in significant delays in internet access, so much so that operations at the US embassy in Dar es Salaam had to be suspended.

EASSy spans a staggering 10,000 kilometres along the eastern coast of Africa, boasting nine landing stations strategically positioned in Sudan, Djibouti, Somalia, Kenya, Tanzania, Comoros, Madagascar, Mozambique, and South Africa.

Tanzania bore the brunt of the outage, experiencing the most severe disruptions, as evidenced by data from the Internet Outage Tracker, compelling the embassy to halt its services for a period of two days.

This latest incident follows a series of challenges earlier this year when connectivity in East Africa was hampered by damage sustained by three submarine cables traversing the Red Sea.

Internet users in East Africa have been grappling with intermittent connections since Sunday, May 12, 2024.

The International Cable Protection Committee attributes the damage to a probable encounter with the anchor of a cargo ship, allegedly targeted by the Yemen-based Houthi rebel group.

However, repair efforts have been impeded by ongoing tensions surrounding access rights to the affected waters.

Commenting on the situation, Bright Simons, research lead at the IMANI Center for Policy and Education in Ghana, lamented the lack of a comprehensive regional framework for telecom emergencies in East Africa, according to SemaFor news.

He noted that despite the region’s advanced regional integration initiatives, similar to those seen in the Southern African Customs Union and Francophone units, the absence of such mechanisms has left operators scrambling to establish ad hoc cross-border arrangements.


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Nigeria’s Omoniyi Ibietan, elected Secretary-General of APRA

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Omoniyi Ibietan, Head Media Relations at the Nigerian Communications Commission, fellow of the Nigerian Institute of Public Relations (NIPR) and African Public Relations Association (APRA), has just been elected the Secretary-General of APRA at the ongoing 35th Annual Conference and Annual General Meeting taking place in Abidjan, Côte d’Ivoire.

Ibietan has promised to work with other members of the Executive Council to continue the trajectory of reforms in APRA, expand the democratic space by encouraging greater participation of national public relations institutions on the Continent and work more closely with the African Union Commission and Council of Ministers to put public relations at the heart of policy, programmes, and project implementation. Ibietan was elected into a three-man Executive Council. The other two members are Arik Karani (Kenya), President, and Dr. Michele Mekeme (Cameroon), Vice President.

OMONIYI P. IBIETAN is a journalist, writer, and author. As Head of Media Relations Management at the Nigerian Communications Commission (NCC), where he oversees aspects of the public communication strategy of the national regulatory authority for telecommunication in Nigeria. Earlier in Nigeria’s Fourth Republic, he was Special Media Advisor to the Federal Minister of Information and Communication.

He has over 20 years of experience in media and communication scholarship and practice, spanning journalism, academia, policy discourse, communication strategy, regulation, and stakeholder relations.

He earned BA and MA in Communication Arts and Communication & Language Arts from the Universities of Uyo and Ibadan in Nigeria, respectively, graduating atop his classes. Earlier, he obtained a diploma in journalism with distinction from the Moscow-Based International Institute of Journalism.

He holds a Ph.D. in Communication from the North-West University in South Africa, with specialisation in political communication. He is a IP3 certified regulation specialist and holds a mini MBA in telecommunications from NEOTELIS in Paris.

He is also a member of the African Council for Communication Education (ACCE), an Associate Registered Practitioner of Advertising (arpa) and member of the International Institute of Communications (IIC), the world’s only policy debating platform for the converged communications industry.

As a scholar, he focuses on patterns of political communication through new media; media and culture studies; and theoretical & normative foundations of communication in relation to democracy and freedom. He is on the faculty of the Nigerian campus of Italy-based Rome Business School (RBS), where he teaches doctoral students PR & Advertising and Media Management & Communication Strategy. He also facilitates learning to students in the Master of Corporate Communication programme at RBS.

His first book, SOCIAL MEDIA, SOCIAL DEMOGRAPHY, AND VOTING BEHAVIOUR IN NIGERIA, was published by Premium Times Books in Washington in May 2023.

He has travelled extensively in Africa, North America, Europe, and Asia.

He is married, has children, plays tennis and scrabble, loves reading and writing, and loves meeting people, especially people from other cultures.

At the ongoing conference, Ibietan presented the first paper at the commencement of business sessions. The title of his paper is DIGITAL INCLUSION AS ARBITER OF ACCESSIBLE PUBLIC RELATIONS: A CASE OF NIGERIAN COMMUNICATIONS COMMISSION.

Using Castells’ Theory of the Network Society and the Knowledge Gap Theory and based on the actions of the Nigerian government through the activities of the Nigerian Communications Commission (NCC), Ibietan advanced a thesis that digital inclusion is the arbiter of digital public relations.

Through implementation of laws, policies, guidelines, developmental regulation, collaborative partnerships, social investments, operational efficiency and ancillary actions that are consequential and quantifiable, and using copious pictorial evidence, Omoniyi discoursed a perspective that NCC’s digital inclusion programmes, projects and activities are foundational to digital economy because investment in and coordination of expansion of digital infrastructure, demonstrating their affordances and enhancing people’s access to such resources, constitute the building blocks and raison d’être of digital economy and inherently digital public relations.

APRA, the successor to the Federation of African Public Relations Association (FAPRA), instituted in Nairobi in 1975, exists to foster unity of Africans and their global allies through interactions and exchange of meaning. Pivoted on standardisation of public relations practice and scholarship on the Continent to enhance its relevance to the African reality, APRA member states and individuals meet annually at a location in any of its regional centres (East, North, South, West, Central, Indian Ocean Islands, and Francophone) to have a conversation with a thematic focus on any of its key intervention areas (Health & Education, Economic Integration, Good Governance, Tourusm & Leisure, and Infrastructure Development). This year’s theme is ‘ONE AFRICA, ONE VOICE: BRIDGING AFRICA’S COMMUNICATION DIVIDE’.

APRA Côte d’Ivoire 2024 is endorsed by the Government of Côte d’Ivoire, the Holding Opinion & Public (THOP), and major global PR associations, namely the International Public Relations Association (IPRA), The International Communications

Consultancy Organisation (ICCO), the Global Alliance for Public Relations and Communication Management (GA), the African Union Commission (AUC), and PR national associations across the continent.

Additionally, the conference featured the eighth edition of the Innovation Summit (IN2SUMMIT) and includes the seventh edition of the SABRE Awards Africa, holding tonight.

The APRA secretariat is in Nigeria, and the body maintains an observer status with the African Union.


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