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Lagos Pockets Some N4.6Bn from Telcos in 2019

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A research conducted by the Nigerian Communications Commission (NCC) has shown that Lagos State earned a total of N4.6 billion from different kinds of charges from telecoms operators in 2019.

Lagos Pockets Some N4.6Bn from Telcos in 2019

The study examined the quantum of taxes, levies, and fees collected by state governments and their impact on the digital economy agenda of the Federal Government.

The report stated that the Lagos State Government collected the highest amount of taxes, fees, and levies from telecoms operators in Nigeria.

The telecoms companies that submitted the amount paid as taxes, levies, permits, and fees to Lagos State Government included Airtel, MTN, 9mobile, IHS Nigeria, VDT Communications Limited, and ATC Nigeria.

Analyses of the report showed that MTN paid N4.52bn to the state government; Airtel paid N75.72m; and 9mobile paid N11.6m.

Also, IHS Nigeria, a telecom infrastructure service provider company, paid N66.12m to the Lagos State Government in 2019.

VDT, an Internet service provider, paid N2.84m while ATC Nigeria, a telecoms infrastructure company, paid N2.08m.

Findings showed that Lagos State accounted for 32.36 per cent of the total taxes, levies, and fees collected by all states in the country.

Next to Lagos State, the study revealed that Gombe State collected 10.29 per cent of the total taxes, levies, and fees of all the states, followed by Delta State with 8.91 per cent.

The study found that taxes charged by state governments on telecommunications operators in Nigeria have a negative impact on their expansion and coverage of unserved areas.

It said, “This was shown in the positive relation that existed between state-level taxes and high unserved areas within the state.

“Nevertheless, other bills and charges such as fees, permits, and others have a positive impact and result in lower unserved areas within the state. Levies as studied do not have a statistically significant impact on unserved areas.”

Analysts at the NCC recommended a review of the government policy on taxation in order for the country to fully reap the socio-economic benefits of the telecommunications sector.

The report said, “Government clearly has a right to impose taxes on businesses that operate and benefit from the public amenities, infrastructure and social services it provides. The expectation however is that a balance can be struck between the legitimate expectations of government and the certainty and fairness businesses expect for them to pursue and achieve their business objectives.

“Uncertainties over taxes and levies affect investment decisions and the anticipated taxes and levies are expectedly built into the cost of services and products and ultimately passed on to subscribers. There is, therefore, a need for urgent action on multiple taxation of the telecoms industry.”

The commission said due to the critical nature or services provided by the telecoms sector to the Nigerian economy, there was a need for urgent action to address the taxation challenges in order to avoid a slump in the sector and Nigeria in general.

The regulatory body advises the government to pursue the implementation of the National Tax Policy and the establishment of a Telecom Finance Corporation to provide additional investment for the industry.

It called on the Nigeria Governors Forum to ensure the implementation of the resolution of the National Executive Council on multiple taxation and regulation.


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ATU, AFRINIC Urge Governments, Regulators to Develop Internet Resilience Framework

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As Africa continues to face internet disruptions, telecom leaders have urged governments and regulators to embrace and implement a Model Framework for Building Regional Internet Resilience.

The African Telecommunications Union (ATU), Internet Society, and African Network Information Centre (AFRINIC) have all endorsed the framework.

The framework organises Africa’s internet resilience challenge around three interdependent focus areas: networks and internet service providers (ISPs), critical infrastructure such as power grids and cables, and market conditions that influence affordability and demand, according to the organisations in a joint statement.

Once implemented, entities or operators responsible for an important part of a country’s internet ecosystem, such as electricity utilities, mobile network operators, ISPs, internet exchange points, or a country-code top-level domain registry, must develop a resilience plan within one year of the framework’s official adoption.

The statement also mentions several past disruptions that hampered communication, such as the West Africa Cable System failure in March 2024, which cut off 13 countries for days.

They went on to explain that the plan must be evaluated and updated on an annual basis and be compatible with the entity or operator’s continuity and reconstitution plans.

It (framework) should also specify how the organisation intends to incorporate the resilience features of redundancy, resourcefulness, rapid recovery—all of which are critical components of achieving overall robustness—into its operations.

ATU has warned that every blackout is a flashing red warning, and that the framework would act as an insurance policy against outages.

“Connectivity remains Africa’s nervous system and when it stutters, schools, hospitals and markets stutter too. This framework is our insurance policy against digital darkness”, said John Omo, secretary general of ATU.

Arthur Carindal, AFRINIC’s head of stakeholder engagement, commended the institutions for their coordinated efforts.

He said: “It is a great honour for AFRINIC to collaborate with ATU and ISOC in transformative initiative enabling all stakeholders to participate in developing Africa’s internet resilience model framework, which highlights key policy recommendations and best practices for strengthening internet infrastructure in Africa.”

 


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NCC Rallies Stakeholder Support to Protect Telecom Infrastructure

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Nigerian Communications Commission (NCC) has reiterated its commitment to the full operationalisation of President Bola Ahmed Tinubu’s Executive Order on Critical National Information Infrastructure (CNII), which designates telecommunications facilities as critical national assets deserving optimal protection.

This comes on the heels of a successful mediation led by the Office of the National Security Adviser (ONSA), in collaboration with the Commission, which resulted in the suspension of a planned strike by the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA).

The strike, if carried out, would have disrupted the supply of diesel to telecommunications sites nationwide, severely affecting network operators’ ability to power their diesel-driven generators and maintain uninterrupted connectivity.

In the days leading up to the resolution, the ONSA, under the leadership of the National Security Adviser (NSA), Mallam Nuhu Ribadu, held strategic engagements with NOGASA’s leadership, with the Commission providing technical and regulatory guidance to highlight the potential implications of service disruptions on national security, the economy, and everyday life.

The discussions culminated in an agreement to call off the industrial action, averting what could have been a nationwide disruption of telecom services.

“Telecommunications infrastructure is the backbone of our connectivity and digital economy. Any disruption, whether through vandalism, accidental damage during construction work, theft of equipment, denial of access to maintenance teams, or interruptions in the supply of essential operational materials, has far-reaching implications for service delivery, economic stability, and national security,” the NSA said.

The Commission expressed appreciation to the ONSA for its leadership and dedication to protecting national assets and commended the maturity and understanding demonstrated by relevant stakeholders in recognising the national importance of telecommunications services.

Commenting on the development, the Executive Vice Chairman/Chief Executive Officer of the Commission, Dr. Aminu Maida, stated: “We will continue to enforce strict compliance by our licensees with technical standards for the deployment and maintenance of telecommunications infrastructure, while working closely with relevant stakeholders to strengthen awareness and cooperation on their protection.

“We also recognise mediation as an effective tool for building consensus among stakeholders. This resolution underscores the importance of dialogue in preventing avoidable service disruptions. Ultimately, we call on all Nigerians to regard telecom infrastructure as a shared national asset, one that underpins our ability to connect with loved ones, transact businesses, access healthcare, pursue education, and participate in the global digital economy.”

The Commission reaffirmed that it would continue to coordinate with security agencies, industry stakeholders, and the public to ensure that Nigeria’s telecommunications infrastructure remains protected, resilient, and reliable for all.


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Nigeria’s Internet Subscriptions Dip Slightly in June, But Data Demand Hits New High

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Active internet subscriptions across mobile, fixed, and VOIP networks in Nigeria dropped to 141.1 million in June, representing a 0.3% decline from the 141.5 million recorded in May, according to the latest statistics from the Nigerian Communications Commission (NCC).

Mobile network operators MTN, Airtel, Globacom, and 9mobile maintained their dominance with a combined 140.6 million subscriptions, leaving Internet Service Providers and others with 528,633 subscriptions at the end of June.

Despite the slight drop in subscriptions, data consumption continued to grow. Nigerians used 1.044 million terabytes of data in June, marginally higher than the 1.043 million terabytes recorded in May, which had been the highest monthly usage since January 2023.

Telecom operators say this surge in data usage is driven by the rapid growth of Nigerian cities, especially Lagos, where more people, businesses, and devices are fueling record bandwidth consumption. In response, operators are expanding capacity to meet the rising demand.


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