Telecom
Pantami Explains Why FG Suspended 5% Excise Tax on Telecom Services
The Federal Government on Monday suspended the controversial 5% excise duty on telecommunication services recently announced by the Ministry of Finance and Nigerian Customs.
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.
Telecom
TD Africa Empowers Nigerians with Sustainable Energy Solutions
TD Africa, a leading technology distribution company in Africa, has unveiled its Green Hero Initiative, a groundbreaking program designed to tackle Nigeria’s persistent energy challenges and promote the adoption of sustainable energy solutions.
This initiative underscores TD Africa’s commitment to advancing cleaner, more affordable energy alternatives for Nigerian households and businesses.
As the cost of fossil fuels continues to rise, the urgency for a shift to renewable energy has never been more apparent. Recognizing this need, TD Africa has partnered with global industry leaders Huawei and EcoFlow to introduce innovative renewable energy solutions tailored to meet the unique needs of Nigerian consumers.
“The Green Hero Initiative is more than just a product launch; it’s a commitment to a sustainable future,” said Chidiebere Nwabuko, Business Manager, Renewable Energy Solutions at TD Africa. “We’re empowering Nigerians to take control of their energy needs, reduce their carbon footprint, and enjoy the benefits of reliable, clean power.
“By partnering with global leaders like Huawei and EcoFlow, we’re bringing cutting-edge technology to the market that is not only affordable but also tailored to the specific needs of our customers and Nigerians across the country.”
Through the Green Hero Initiative, TD Africa is offering a variety of renewable energy solutions that cater to diverse energy needs. These solutions include the powerful Huawei ISite Power M, ideal for powering homes and small businesses, and Huawei ISite Power S, designed for commercial and industrial applications.
Additionally, EcoFlow’s portable power stations are made up of the River series and Delta series that attend to the needs of low and mid-range Nigerians and provide a convenient and clean energy source for residential homes, small and medium businesses and outdoor activities or backup power.
By promoting the adoption of renewable energy, TD Africa is committed to significantly reduce carbon emissions and contribute to a more sustainable and environmentally friendly future for Nigeria. The company’s Green Hero Initiative is a significant step towards achieving this goal.
To ensure accessibility, TD Africa has made these solutions available through various online platforms. Consumers can conveniently shop for these products at justownitapp.com or KongaPlus via konga.com. Authorized partners of TD Africa can also access the range of offerings through the TD SuperApp at superapp.tdafrica.com.
Telecom
Call, Data Tariffs Will Increase – Nigerian Minister, Tijani Declares
Minister of Communications, Innovation, and Digital Economy, Dr Bosun Tijani, has announced that telecom tariffs in Nigeria will soon increase, but not by the 100 percent proposed by Mobile Network Operators (MNOs).
Following a stakeholders’ meeting with the MNOs in Abuja on Wednesday, Tijani confirmed that consultations and engagements are ongoing, and the Nigerian Communications Commission (NCC) will soon approve and announce the new tariffs to the public.
“You have seen over the past weeks that there has been agitation from some of these companies to increase tariffs. They are requesting for 100 percent tariff increase. But it will not be by 100 percent; the NCC will soon come up with a clear directive on how we will go about it. We want to strike the balance as a government, to protect our people, but also protect and ensure that these companies can continue to invest significantly,” Tijani said.
He emphasized the importance of regulating the telecommunications sector to ensure its growth and sustainability. Tijani also stated that the Federal Government would no longer leave infrastructure investments solely to private companies, as they tend to invest only where they can see short- to medium-term returns.
“We will not want this conversation to just be about tariff increase. What the world is talking about today is meaningful connectivity, people want to have access to quality service. A part of it that the consumers may not be aware of is the investment that needs to go into the infrastructure that is used to deliver these services,” he added.
The Executive Vice-Chairman of the NCC, Dr. Aminu Maida, explained that the stakeholder meeting was focused on ensuring the sustainability of the industry. He confirmed that a 100 percent tariff increase was unlikely and that ongoing discussions would determine the final percentage, with an official announcement expected within a week or two.
“I know that Nigerians are agitated to hear the exact percentage approved. There is still some stakeholder engagements that we are going through, but you will hear from us within a week or two,” Maida said.
He also mentioned that the NCC had implemented several tools and instruments to ensure compliance with service quality standards and urged MNOs to adopt simpler pricing models to help consumers better understand charges.
“We are moving away from the regime where you will have a main rate, then you will now have a bonus which is at a different rate. It makes it often complicated and difficult for Nigerians to actually understand what they are being charged for. There is this agitation that the MNOs are stealing our data,” he added.
The CEO of Airtel Nigeria, Dinesh Balsingh, represented by Airtel’s media spokesperson Femi Adeniran, defended the proposed tariff adjustments, citing rising operational and capital costs.
“The economic realities of rising operational and capital costs necessitated the proposed tariff adjustments. This is aimed at ensuring the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers,” Balsingh stated.
Telecom
Banigbe, 9Mobile CEO Emphasizes the Need for Significant Investment in Infrastructure to Ensure Quality of Service
Obafemi Banigbe, 9mobile CEO, has added his voice to the ongoing discussion on the proposed tariff hike, highlighting the telecom industry’s critical role in Nigeria’s economic growth.
He said “The telecom industry is a critical enabler of economic growth, but we are facing unprecedented challenges. We must find a balance between affordability and sustainability to ensure the industry remains viable and continues to provide quality services to Nigerians. The current situation has not achieved that balance, which is why we are having this conversation about sustainability,”
According to him, the industry is facing significant challenges, including macroeconomic headwinds, rising operational costs, and declining profitability. He emphasized that these challenges threaten the industry’s sustainability and ability to invest in infrastructure and quality of service.
“As you can imagine, both our capital and operational costs have risen dramatically, mainly because many of these costs are denominated in foreign currency or indexed to it, while our revenues are in local currency.
For instance, the Naira, which was previously around 400 to 450, has now officially surpassed 1,500—representing a nearly 350% increase in just the past two years.
This foreign exchange devaluation has caused our costs to surge. Even though the industry is seeing growth in top-line revenue, the increase in local currency revenue has not kept pace with the rising cost base,” he explained.
Banigbe’s comments come as the telecom industry continues to navigate the complexities of the proposed tariff hike. While some stakeholders have expressed concerns about the potential impact on consumers, others have argued that the hike is necessary to ensure the industry’s long-term sustainability. The telco chief said that if the sector does not remain viable, customers will not receive the services they expect.
Drawing from 9mobile’s experience, he pointed out that a lack of investment in recent years has led to a decline in service quality, causing customers to switch to competitors that offer better quality.
He stressed that this situation poses a significant threat to the industry’s sustainability.
“What we are saying is that every business must generate enough revenue to cover its costs and allow for reinvestment into the business. If we fail to generate sufficient revenue, we will have no choice but to borrow, either from shareholders or the capital market.
“Over the past two years, this is what many of us have been forced to do. However, this is not sustainable in the long term, as it will eventually become impossible to continue borrowing without a clear plan for repayment.”
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