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Step Down 9% Service Tax Bill, Telecoms Industry Overtaxed- ATCON

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The Association of Telecommunications Companies of Nigeria (ATCON) has commended the Lagos Chamber of Commerce & Industry’s (LCCI) dialogue session on the Proposed 9% Communication Services Tax Bill, adding that the industry is strictly against the moves by the Federal Government.

Olusola Teniola, President of the Association, said that they were happy to identify with the strategic initiative by LCCI to protect investments made in the telecom industry from undue pressure from the government in the form of yet additional burden on the members that are already overtaxed by all tiers of government through AOL, VAT, RoW (s), Levy permits, duties etc.

Teniola who was speaking at the event on Wednesday said that the growth of Information and Communication Technology during the last few years has been phenomenal and tremendous with positive impact on every aspect of human life, adding that the industry which is heavily taxed already would prefer the Bill is stepped down. 

“There is no doubt that the emergence and liberalization of this sector has also impacted positively on revenue accruable to government , employment generation (both Direct and Indirect), Foreign Direct Investment (in tens of billions of dollars) and a host of other positives which time would not permit me to mention”.

Proposed Tax & ATCON Position
He said that ATCOn recognizes that, generally, taxation is one of the many ways through which governments all over the world generate income to be able to discharge their duties to the citizens.

“Government at all levels make collections of taxes mandatory through enactment of policies. The contributions of the Communications sector was meagre some fifteen years ago but through the concerted efforts of some patriotic and dedicated experts in the telecommunications sector under the aegis of the Association of Telecommunications Companies of Nigeria who advocated for the liberalization of the sector, the sector is now contributing revenue of well over 8% to the nation’s GDP.

“ATCON believes any calculated actions that have potentials to stifle further contribution of the telecoms industry to our GDP must be avoided by all tiers of government in Nigeria as the perceived benefits of imposing a Communication Service tax on telecoms subscribers has the potential to erode if not destroy the achievements that have been made since the telecoms sector was liberated. We therefore advise both the House of Representatives and the Senate (the Legislative arm of government) to discontinue with the bill.              

ATCON’s Reasons
“Decrease in the Inflow of FDI to the Sector: The general rule of investment or principle of investment is that institutional Investors will take their investible funds to countries where the tax rate is low or lowest. As we all know that Nigerian telecoms subscribers are already paying tax because VAT is embedded in calls made and data consumed”.

He warned that if the bill sails through it would reduce the subscribers’ consumption of data and reduce length of a voice call, this will result in drop in revenue that would accrue to telecoms operators which will in turn reduce the contribution of the sector to our GDP.

“The Return on Investment (ROI) would be badly affected as a result of the above illustrations. Nigeria as a nation needs a lot of investible funds to build infrastructural facilities and provide employment for her teeming population and especially our growing youth. As we know that Nigeria’ telecom industry still needs circa 50,000 base stations to be able to improve on Quality of Service and to reach the unserved and underserved parts of the nation.

“ATCON’s position is that whatever we are doing as a nation must not be done to deter investors from staking their hard earned money on the Nigerian telecommunications businesses, in other words, our policies must continue to be investment friendly. It has been established that revenue from voice is still significant and it must be stressed here that the investment that is required to deepen the penetration of Broadband in Nigeria is much greater than the one we used to provide voice telephony. In view of this, the said Communications”.

According to Teniola, the Service Tax bill should be stepped down so as to encourage investors and make the sector more attractive for foreign direct investors.

He said that ATCON is working with other relevant agencies to increase the Foreign Direct Investment to the sector which is highly capital intensive, hence this cannot be achieved if the government is considering introducing Communications Services Tax, which will deter further investments to be made.

Loss/Erosion of Innovation and Creativity
“ATCON considers the proposed Communications Services Tax bill unnecessary and prohibitive because the operators in the sectors are already faced with multiplicity of taxation. Imposition of Communications Services Tax bill could stifle innovation and creativity in the sector and this would automatically reverse the gains already made in the past decade. This might lead to increase in unemployment, decrease in revenue accruable to government which would heighten the county’s poverty level.

Telecoms Services Unavailability in Some States
“Governments at all levels have at one time or the other have expressed the need to gear up the use of ICT to grow and develop their various constituencies. The application of the proposed Communications Services Tax would definitely be a clog in the wheel of roll out of broadband services for the development of the nation-Nigeria. It means that telecommunications services would not be available in some state of the federation.

Speeds-up Chronic Recession
“The high taxation takes so much away from both the telecoms operators and subscribers that little or nothing is left to run the business. If government tries to boost the economy with increased government spending, the result is stagflation (simultaneous high inflation and unemployment) instead of prosperity. The only cure for stagflation is to cut both taxes and government spending.

“ATCON believes any action that has the potential to derail the telecoms industry should be avoided by all tiers of government in Nigeria as the benefits of imposing a Communication Service Tax on telecoms subscribers are far lower than the revenue that it is going to create for the government. In view of this and other reasons enumerated above, the Association’s position is that the proposed Communications Service Tax bill should be stepped down.

                                                     

 


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AMN Activates Starlink Cellular Backhaul Connectivity in Nigeria

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Africa Mobile Networks Group (AMN) has said that its first of its base stations in Nigeria to connect to SpaceX’s Starlink constellation is now live and using the LEO satellite network for backhaul connectivity.

AMN Activates Starlink Cellular Backhaul Connectivity in Nigeria

It’s the first AMN base station to connect to Starlink since AMN and SpaceX signed a commercial deal in July 2023 to use Starlink for remote base station backhaul connectivity across Africa.

AMN said in a statement that Starlink’s low-latency connectivity enables its multi-carrier RANs to sustainably provide 2G, 3G and 4G services in remote, rural areas of Nigeria. AMN also said it also paves the way for the launch of 5G services, which AMN plans to do before the end of this year.

AMN, which builds, owns, operates and maintains mobile network infrastructure for African mobile network operators, currently operates 1,600 base stations across Nigeria.

The company said it will continue to install new sites throughout 2024 in Nigeria, as well as Democratic Republic of the Congo, Cameroon, Madagascar, Cote d’Ivoire, Benin and Rwanda. AMN also has operations in Bissau, Ghana, Guinea, Liberia, Sudan, and Zambia.

Starlink has been commercially available to consumers and enterprise customers since January 2023. Last week, according to a report from Nairametrics, Starlink slashed the price of its internet router by 45%, although its monthly subscription rate remains unchanged. No reason was given, but the report suggests the move may be related to the naira’s recent appreciation against the US dollar and other foreign currencies.

According to figures from the Nigerian Communications Commission (NCC), Starlink had over 11,200 subscribers in the country as of the third quarter of 2023 – which also makes it one of the top ISPs in Nigeria, the report said.

 

 

 

 

 

 

 

 

 


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6 Ways Gemini can support your job Search in the Nigerian job Market

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The Nigerian job market is a competitive jungle, rich with potential and brimming with energy. From bustling tech hubs to burgeoning green energy sectors, there’s an incredible opportunity out there waiting for you.  But navigating this dynamic landscape can feel overwhelming.  How do you cut through the noise, showcase your unique strengths, and land your dream job?

That’s where Gemini, Google’s collaborative AI-powered tool, comes in as your ultimate career companion, guiding you every step of the way. Imagine having a seasoned career coach, research assistant, and skills advisor right at your fingertips!

Here are 5 ways Gemini can be your ultimate career ally:

  1. Crafting a Standout Resume

Your resume is your first impression, and Gemini ensures it’s a dazzling one.  Need help translating your customer service experience into impressive problem-solving skills?  Gemini can rephrase it for you! Wondering how to highlight your leadership experience powerfully? Ask Gemini to suggest strong action verbs that showcase your skills. Before submitting your resume, ensure it’s error-free by asking, “Can you review my resume for grammatical errors and suggest ways to improve clarity?”. You can even ask Gemini to help draft a compelling cover letter based on a job description!

  1. Interview Confidence Boost

Interviews can be nerve-wracking, but Gemini helps you walk in feeling prepared and confident.  Get a quick rundown of a company’s latest projects and overall mission by asking, “Summarise [Company Name]’s latest developments and approach to employee well-being.”  Not sure how to answer those tricky behavioural interview questions? Gemini can guide you with practice questions like, “Give examples of common behavioural interview questions for a marketing position in South Africa.” To impress your interviewers, have insightful questions ready: “Help me formulate questions to ask about the company’s future direction.”

  1. Keeping Skills Sharp

In today’s fast-evolving job market, continuous learning is key!  Let Gemini help you stay ahead of the curve.  Identify those in-demand skills that employers are looking for by asking, “What are the top 3 tech skills companies in Kenya are seeking in software developers?” If you’re looking to switch fields, Gemini can help you find accessible learning resources:  “Find free online courses in data analysis for beginners interested in a career transition into finance.”  Even if you’re a visual learner, Gemini’s got you covered. Simply ask, “Recommend YouTube channels that teach the fundamentals of graphic design software.”

  1. Networking Made Effortless

Building a strong professional network unlocks incredible opportunities.  Gemini simplifies the process by helping you optimise your online presence and target relevant events.  Craft an impactful LinkedIn bio that attracts the right recruiters with a request like, “Help me write a compelling LinkedIn bio that showcases my skills and experience in project management.”  Seeking out opportunities to connect with like-minded professionals? Ask Gemini, “What tips will you give for connecting with the vibrant Artificial Intelligence community at tech conferences?”. Even if you’re unsure how to approach networking, Gemini offers support with queries like, “How can I make a good first impression when reaching out to recruiters on LinkedIn?”

  1. Remote Work Made Simple

Remote work is revolutionising the African job market, offering incredible flexibility and the potential to work with global companies. If you’re eager to explore remote roles that match your skills and aspirations, Gemini can help streamline your search.  Start by asking, “Show me reputable websites specialising in remote job listings for African candidates.”  Want to know more about a company’s remote culture before applying? Ask Gemini, “How can I get a feel for a company’s remote culture?” To ace those remote interviews, get tips with a query like, “Help me prepare for a remote interview – what are some essential points to remember?”

Embrace the Journey with Gemini by Your Side

Let Gemini be your secret weapon – equipping you with the insights, skills, and confidence to stand out from the crowd and achieve your career aspirations. So, fire up gemini.google.com and discover the power of Gemini!


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FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 28, a cut on its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


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