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Pantami Explains Why FG Suspended 5% Excise Tax on Telecom Services

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Isa Ali Pantami, minister of Communication and Digital Economy
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The Federal Government on Monday suspended the controversial 5% excise duty on telecommunication services recently announced by the Ministry of Finance and Nigerian Customs.

Isa Ali Pantami, minister of Communication and Digital Economy

The suspension was made known by the Minister of Communications and Digital Economy, Isa Pantami,  during the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector in Abuja.

The minister, while announcing the decision, explained that the telecommunications sector is already overtaxed with multiple taxation.

This is even as he directed that a committee to be constituted to look into the matter carefully and advise him carefully.

It would be recalled that the ministry of Finance and the Nigerian Customs Service through the had recently at a stakeholders’ engagement announced plans that it would commence   the implementation of its proposed  5% exercise duties on telecommunication services and beverages in 2023.

But in a swift reaction, the CDE Minister kicked against the move, which he said would increase the cost of telecommunication services and increase for Nigerians and widen gap in access.

“It is because of my intervention that the President have grant my prayers, no one immediate suspension of excise duty in the digital economy sector, and no two he approved that a committee be constituted to look into the matter carefully and advise him accordingly. This committee is to be chaired by the Minister of Communications and Digital Economy.

“The president has appointment me to be his eyes and ears in the sector and it is my responsibility to ensure we are just and fair to the operators, government and most importantly our people that are the consumers,” the minister said.

Speaking further on how he presented the case to the president on the possible effect of the excise duty on the sector, Pantami, “Of recent it was announced that some of our respected brother and sister (government officials), kick started the process of introducing excise duty in the telecom sector in which there and then, based on the constitution and being the representative of president Buhari in the sector. I rejected that whole heartedly being the representative of the president.

“I formalized my position and explained to him in a letter that could be referred to as a petition, (reasons; excise duty is usually fixed on luxury products.

“I told the president (in the letter) that if care is taken that attempt will destroy the digital economy sector that is becoming the backbone of our economy.”

On why he kicked against the excise duty, the minister said, “Despite our achievements we have been recording some challenges in the sector and if care is not taken these challenges could be a barrier in the development of the sector in the next few years to come.

“One of them; excessive taxes and sometimes multiple taxation.  As it is today in the tax category of ICT sector (39) which is very worrisome. But as of today, the ICT sector is over burdened by so many categories of taxes to the extent that today there are 41 categories of taxes at the federal and state level, particularly in the telecom sector. Some at federal level and some at state level.

“Beside these taxes are multiple taxes (the same taxes being collected at the federal is also what the states are insisting be paid to them. If care is not taken this is what will jeopardize the achievements and gains that we have recorded so far in the sector.”

Speaking further, the minister noted that prices of products and services in other sectors had increased significantly but the prices of products and services in the telecom sector remained unchanged in the last three years.

‘’The mobile Network Operators looking at things outside our sector like petroleum products, exchange rate, inflation, devaluation of the currency among others have been coming with many initiatives asking the regulator to allow them review their prices upward. In these three years, there were more than 15 attempts to increase the price of telecommunications services and in all of them I retained my position; saying no.

“And whenever the regulator escalates the matter to me; I will always encourage and urged them to try and persevere with the little profit they are making because the current economic situation in Nigeria doesn’t allow us to continue to add burden on our poor citizens that our suffering and can hardly get three square meals in a day and broadband and telecommunications services are becoming a necessity that a luxury, Pantami said.

Meanwhile, the Minister of Communications and Digital Economy will serve as Chairman of the Committee.

Members of the committee include: Pantami Chairman, while the Minister of Finance and National Planning,  Chairman, Federal Inland Revenue Services (FIRS), Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC) and Representative of all Telecom companies in Nigeria.


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Airtel Africa Partners Starlink to Launch Direct-to-cell Service in 14 Markets

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Airtel Africa said on Tuesday it has partnered with SpaceX to introduce Starlink’s direct-to-cell satellite technology to all its 14 markets.

The satellite-to-mobile service will begin across Africa in 2026, with data for select applications and text messaging, Airtel Africa said in a statement.

Airtel Africa customers with compatible smartphones in regions without terrestrial coverage will have network connectivity through Starlink.

The deal also includes “support for Starlink’s first broadband Direct to Cell system, with next-generation satellites that will be capable of providing high-speed connectivity to smartphones with 20x improved data speed,” Airtel Africa said.

Last month, Kyivstar, Ukraine’s largest mobile operator, became the first in Europe to launch Starlink’s direct-to-cell satellite technology in a bid to keep millions connected amid wartime blackouts and disrupted infrastructure.


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NCC Blames NOGASA for Abuja Outage

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Nigerian Communications Commission (NCC) has blamed the actions of the National Oil and Gas Suppliers Association (NOGASA), for the recent telecom blackout experienced in the Abuja area.

NCC Blames NOGASA for Abuja Outage

NCC

A statement issued on Friday by the Head, Public Relations, NCC, Mrs. Nnenna Ukoha, while acknowledging the challenges and impact of the degraded Quality of Service (QoS) in the area on subscriber experience, stated: “The challenges are a result of the activities of the National Oil and Gas Suppliers Association (NOGASA), which disrupted diesel supplies to sites with the attendant telecommunications services outages in Abuja.”

She however disclosed that the telecommunications sector regulator is committed to ensuring restoration of seamless communication services to the affected area, and all Nigerians at large, and recognizes the importance of reliable power supply for the provision of optimal telecommunication services.

“The Commission is collaborating with major stakeholders and licensees to address these challenges, largely caused by disruption to diesel supply affecting IHS Nigeria Limited, the colocation provider responsible for powering Airtel and MTN base stations in the affected areas.

“The NCC is actively engaging with relevant stakeholders to address the diesel supply issues and explore sustainable solutions.

“The Commission urges all parties to work together to collaboratively resolve these challenges swiftly by removing the diesel supply bottlenecks affecting critical telecommunications infrastructure, arising from NOGASA’s actions.

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“In the face of these challenges, we reiterate our commitment to fostering a conducive environment for the growth and sustainability of telecommunications services in Nigeria.

“We are taking proactive steps to facilitate dialogues between the impacted service providers and other stakeholders to promptly resolve the diesel supply concerns that have negatively impacted service quality.”

While assuring that the Commission remains dedicated to effectively managing the situation and will keep the public updated on progress towards restoring full telecommunication services in Abuja, Mrs. Ukoha appreciated subscribers for their patience.

“We thank telecommunications subscribers for their understanding and patience during this period and reaffirm our commitment to delivering high-quality telecommunications services nationwide,” she said.


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NITDA Charts Path for Kano as Innovation Hub

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Mallam Kashifu Inuwa Abdullahi, Director-General of the National Information Technology Development Agency (NITDA), has called for a fundamental shift in Kano State’s economic strategy, urging stakeholders to embrace innovation, technology and collaboration as the drivers of growth in the 21st century.

NITDA Charts Path for Kano as Innovation Hub

Mallam Kashifu Inuwa Abdullahi, Director-General of the National Information Technology Development Agency (NITDA)

This is contained in a press statement e-authored by the Director of Corporate Communications & External Relations at NITDA, Hajia Hadiza Umar.

Speaking at the Kano Startup Weekend, Mallam Abdullahi acknowledged Kano’s long-standing reputation as the commercial nerve centre of Northern Nigeria and the wider Sahelian region, noting that its history of trade, enterprise and human capital provided a solid foundation for future growth.

Abdullahi emphasised that while these strengths powered Kano’s success for centuries, the modern economy now offered even greater opportunities through innovation and technology.

He described innovation as the process of transforming ideas into impactful solutions through commercialization, stressing that when ideas were effectively deployed, they created value, solved societal challenges and generated sustainable economic growth.

He noted that Kano’s large market, strategic location and vibrant entrepreneurial culture placed it in a strong position to take advantage of innovation-driven opportunities.

According to him, “Innovation is the process of taking an idea from inception to impact. Invention on its own is a cost centre, but when you commercialise an idea, when you turn it into a product or service that solves a real problem and creates value, that is when you begin to drive economic growth and inclusion.”

He noted that the state hosted numerous degree-awarding institutions across federal, state and private ownership, providing a strong base for human capital development.

However, the NITDA DG expressed concern that these institutions often operated in isolation from industry, with research outputs rarely translating into commercial or industrial applications.

He explained that innovation did not happen in silos and stressed the need for a strong, interconnected ecosystem that brought together academia, industry, startups, entrepreneurs and government.

According to him, universities should conduct research informed by industry needs, industries should leverage research to improve productivity and competitiveness, and startups should serve as the bridge that converted ideas into market-ready solutions.

The NITDA boss further encouraged entrepreneurs to leverage technology to build businesses that could grow beyond local markets, explaining that innovation-driven enterprises had the power to scale rapidly, create jobs and position Kano competitively at both national and global levels.

According to him, digital platforms and emerging technologies now made it easier for startups to reach wider markets and develop solutions that were previously unimaginable.

“You can start your business here in Kano, but your thinking must be global from day one. Technology has removed barriers. With the right skills and platforms, a startup in Kano can build solutions that serve not just Nigeria, but the world,” he noted.

Highlighting NITDA’s ongoing interventions, its Director-General outlined the Agency’s commitment to building national innovation capacity through targeted human capital development programmes.

He cited the Digital Literacy for All (DL4ALL) initiative, which aimed to equip Nigerians across all segments of society with essential digital skills, and the 3 Million Technical Talents (3MTT) programme, designed to produce a pipeline of globally competitive technical professionals in areas such as software development, data analysis and emerging technologies.

He said, “Through DL4ALL, we are ensuring that Nigerians at all levels have the basic digital skills needed to participate in the digital economy, while 3MTT is deliberately building a pipeline of globally competitive technical talents who can drive innovation, create jobs and attract investment.”

Abdullahi explained that these programmes were key pillars of President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritised skills development, innovation, job creation and inclusive economic growth as pathways to national prosperity.

According to him, empowering Nigerians with digital and technical skills was essential for building a resilient economy capable of competing in the global digital landscape.

“President Tinubu’s Renewed Hope Agenda is about investing in people, empowering them with relevant skills and creating opportunities for inclusive growth.

“At NITDA, we are using digital skills and innovation as tools to translate that vision into real economic impact for Nigerians,” he said.

The NITDA boss urged all stakeholders in Kano to work together to build a functional innovation ecosystem that could unlock the state’s vast potential and expressed confidence that with the right mindset, strong collaboration and sustained investment in digital skills and innovation, Kano could reclaim its historic leadership role and emerge as a major innovation and entrepreneurship hub in Nigeria and beyond.


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