News
Telecom Operators Urge FG to Reduce Taxes to Boost Investments
The Global System for Mobile Communications Association (GSMA) has called on the Federal Government to lower telecom taxes to stimulate investment and enhance Nigeria’s digital economy. Angela Wamola, GSMA’s Head of Sub-Saharan Africa, highlighted that Nigeria’s complex and burdensome tax regime is stifling the telecom sector’s growth and investment capabilities.
In a note shared with our correspondent, Wamola pointed out that rising operational costs, driven by increasing energy prices and difficulties in accessing foreign currency for equipment imports, are exacerbating the sector’s challenges. These issues are not unique to Nigeria but are intensified by the country’s specific tax obstacles.
The Nigerian telecom sector has seen a slowdown in growth and a decrease in its contribution to the GDP due to financial strains on operators. In 2023, telecom companies paid approximately N2.4 trillion in taxes, according to a digital economy report from the Groupe Special Mobile Association. Despite this, the sector generated around N33 trillion, accounting for 13.5% of the country’s GDP.
Wamola also criticized the high and inconsistent right-of-way (RoW) charges, which vary significantly between states. These fees, paid for using land or property for infrastructure deployment, have increased the cost of fiber optic installations. Although a 2020 agreement set the RoW charge at 145 naira per meter, many states have not adhered to this rate, leading to increased costs ranging from 1% to 70% above the agreed amount.
Uniform application of the agreed RoW rate could reduce deployment costs by 15%, making network expansion more feasible for operators. Wamola urged the government to streamline taxes, harmonize RoW charges, and eliminate multiple levies to encourage investment and improve digital inclusion.
She emphasized that tax reform would not only benefit the telecom sector but also promote economic growth, enhance connectivity, and increase access to digital services for millions of Nigerians.
The Transmission Company of Nigeria (TCN) has reported its seventh partial grid collapse in 2024. Despite the recurring issue, TCN’s General Manager of Public Affairs, Ndidi Mbah, reassured the public that efforts to restore power are well underway, with about 90% of substations receiving bulk power.
Mbah noted that the Azura Power Station initiated the grid recovery, although a minor setback occurred. However, power supply has been restored to the Abuja region and other key distribution centers. The Ibom Gas Generating Station remained unaffected, continuing to supply power to the South-South region.
An investigation into the cause of the collapse will commence once full grid restoration is achieved.
Vice President Kashim Shettima has expressed deep sorrow over the tragic tanker explosion in Jigawa State, which claimed over 100 lives. In a statement issued by his media aide, Stanley Nkwocha, Shettima, on behalf of President Bola Tinubu, extended condolences to the affected families, praying for strength and comfort in their time of grief.
Shettima assured the public that the federal government is mobilizing resources to support the injured and assist those affected. He has directed the immediate deployment of the National Emergency Management Agency (NEMA) to provide aid. The Vice President also stressed the need for a review of fuel transportation safety protocols to prevent future incidents.
In a separate statement, First Lady Oluremi Tinubu offered her condolences to Jigawa Governor Umar Namadi and the people of Jigawa, praying for peace and comfort for the families affected. She called the incident “unfortunate” and extended prayers for the recovery of the injured and the repose of the souls lost in the tragedy.
The Nigeria Customs Service (NCS) has revealed that it intercepted a total of 10,598 pieces of arms and 114,929 rounds of ammunition valued at N9.58 billion over the past six years. Comptroller General of Customs, Bashir Adewale Adeniyi, made this disclosure during a press conference on enforcement activities in Zone A.
Adeniyi highlighted that 60% of these seizures occurred in 2023, reflecting the Customs’ increased efforts to curb arms smuggling. He also mentioned that recent operations such as Operation Whirlwind and Operation Swift Sting are part of a strategic response to tackle evolving smuggling tactics.
In addition to arms seizures, the Customs CG announced the largest pangolin scale seizure since 2020, with 9,493 kg of scales confiscated in collaboration with the Wildlife Justice Commission. The joint operation led to four arrests across Kano, Kaduna, and Lagos. The NCS continues to intensify efforts against wildlife trafficking, targeting supply routes in northern Nigeria and border areas.
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