NCC urges states to reduce taxes on telecom companies

The Nigerian Communications Commission (NCC) has called upon states and local governments in Nigeria to reconsider and reduce the taxes imposed on telecom companies. The NCC emphasizes that excessive taxation could hinder the growth of the telecom industry, which plays a crucial role in the country’s development.

The Federal Government, as part of its 2024-2026 Medium-Term Expenditure Framework and Fiscal Strategy Paper, has proposed implementing a five percent excise duty on telecommunication services to boost its revenue. However, the Executive Vice Chairman of NCC, Aminu Maida, expressed concerns about the existing tax burden on telecom operators, which already stands at around 50 to 55 percent. Such high taxes could discourage foreign investments in line with President Bola Tinubu’s directives to the commission.

Maida disclosed that the NCC is planning a nationwide advocacy campaign to persuade state and local governments, as well as other stakeholders, to reduce the levies they impose, particularly Right of Way charges and multiple taxes.

During an interactive session with journalists in Abuja, Maida stated, “We are going to be going on an advocacy campaign to see how we can convince the states to remove some of these obstacles like Right of Way and multiple taxations because I have seen some studies which indicate taxation is almost 50 percent getting to 55 percent in some areas in this country. You would agree with me that if we are trying to bring in foreign investment, that is not a good picture to paint.”

He urged states to consider the long-term benefits that would result from massive investments in the telecom sector, such as job creation and the development of various value chains.

Additionally, Maida assured that the ongoing dispute between telecom giants, MTN Nigeria and Globacom Network, would be resolved amicably, emphasizing the commission’s commitment to ensuring a level playing field for all stakeholders.

The NCC has developed a strategic vision based on five pillars to drive the telecom industry and ensure it continues to contribute significantly to the country’s Gross Domestic Product. Recognizing the challenges related to the quality of services provided by mobile network operators and Internet service providers, the NCC will adopt a “total consumer experience” approach to address these issues.

Maida also advised consumers who complain about data depletion to consider factors like the type of handset they use, available services, and digital services they enjoy, all while considering the cost implications.