Broadcasting
How desirable is 5% Excise Duty on Telecom Services?
By Ibrahim Dan Halilu
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed has thrown Nigeria into another controversy amidst plans to launch the 5G network, which is expected to transform every sector and sphere of life of the citizenry.
Coming at a time when Nigeria warming up to launch the largest high speed mobile network technology (5G) in Africa, the 5% excise duty on telecom services being implemented by the Federal Ministry of Finance and the Nigeria Customs Service, is not only a negation of the laudable gains of the Buhari administration in the telecom sector but another incontrovertible proof of the administration’s poor policy coordination.
The expectation of most Nigerians is that the Finance Minister and the Controller General of the Nigeria Customs Service who are the prime advocates of the 5% excise duty will engage with the Ministry of Communications and Digital Economy under whose purview the telecom sector presides, and the Nigerian Communications Commission (NCC) which is the telecom sector regulator, to create a synergy before rolling out the new tax regime.
It is no brainer to understand the imperative of engaging with these two government institutions whose role is central to all that the administration has achieved in that sector.
The NCC has over the years implemented various initiatives and programmes that have stabilized the telecom sector and created a very healthy environment for the industry to thrive and offer quality and affordable service to Nigerians.
The commission’s declaration of 2016 as the Year of the Telecom Consumers has placed premium on the consumer as king who should be treated with respect and offered value for money.
Conversely for the mobile network operators who enjoyed massive support of the Commission disputes resolution, protection of critical telecom infrastructures, and restoration of operational facilities that enhance better performance of the industry.
The Commission has played a very strategic role in resisting arbitrary hike in tariffs and other charges for telecom services which can impose additional burden on the consumers. Instead, the NCC envisions a new tariff regime that has not only reduced the cost of data by more than 100% but further increased access to telecom services in Nigeria.
Its robust National Broadband Policy 2020-2025 is aimed at achieving a new landmark in telecom operations in Nigeria as it rolls out the 5G technology that will change the way of doing almost everything.
Similarly, the Ministry of Communications and Digital Economy through its indefatigable minister, Prof. Isa Ali Pantami has launched Nigeria on the world map of countries that are transiting from analogue to digital economy with the unveiling of a robust policy on 5G Network and Digital Economy.
These are commendable efforts that should be complimented by the Federal Ministry of Finance and Nigeria Customs Service (NCS) through advocacy for a downward review or complete removal of some of the tariffs imposed on the MNOs and other service providers.
The presidential inauguration of a 27-person committee charged with the teak of exploring ways of improving Nigeria’s ranking on the Ease of Doing Business, should have been followed by an aggressive drive of the Federal Ministry of Finance to streamline some of the regulatory measures that hinder the effective performance of the industry such as multiple taxation, and promote policies that will remove barriers to consumer adoption of the new technology.
It is on this note that one wishes to appeal to the Minister of Finance to exercise the power conferred on her by the Finance Act 2020 with caution and empathy to the Nigerian consumers who are already overburdened by new series of taxes introduced by the Buhari Administration.
The Minster needs to find equilibrium between government’s desires to raise more funds and citizen’s expectations for better welfare as the destabilizing effects of the new tax regime outweigh its monetary benefits both to the economy and the citizens.
Firstly, the policy will reverse the gains recorded by the NCC in reducing the cost of telecom services to the consumer and efficient service by the Mobile Network operators (MNOs) who have to contend with multiple taxations and increased operation costs.
Secondly, the new policy may further have adverse effect on the flow of both foreign and local investment in the broadband infrastructure that is needed to scale up the deployment of 5G network to other cities across the country. The MNOs are already groaning under an indiscriminate multiple taxation policy that make is harming their business.
The greatest damage the new tariff will do to Nigeria’s telecom sector is derailing the rollout and total adoption of the 5G network that is being test run by the major telecom service network, the MTN whose competitor, Mafab has already announced an extension of the 5G launch to end of the year due to unforeseen challenges.
The Federal Government’s policy on 5G Spectrum for Digital Economy driven by the Ministry of Communication and Digital Economy may suffer a setback under the new harsh tax regime that targets the telecom sector as a major revenue earner for government.
The imposition of the 5% excise duty will be an additional burden on small businesses and individuals who wish to take advantage of the benefits and opportunities offered by the 5G network to expand and improve their businesses as they may face a new tariff regime.
Another possible consequence of the new tax regime is retarding the progress made in launching Nigeria into the open governance platform that promotes transparency and accountability, while enhancing citizens’ participation in governance as any increase in tariff will lead to low patronage of the telecom services.
It is my candid view therefore that the introduction of 5% excise duty on telecom services is both untimely and undesirable for Nigeria whose majority citizens are living below poverty margin, and have no visible source of income.
The Federal Ministry of Finance and the Nigeria Customs Service should dissipate more energy on initiating people-centred policies that will support the NCC in performing its regulatory functions instead of frustrating the laudable efforts of the commission to promote affordable and efficient telecom services in Nigeria.
The duo should regard themselves as a part of the same government that enunciated the policy of promoting digital economy through universal access to telecom services for Nigerians instead of a separate entity that competes for space or attention.
In her search for new avenues to improve government revenue, the Finance Minister should look beyond imposing excise duty on telecom services, and engage with the public and other stake holders to explore other options that are richly available.
The government can tilt the scale towards diversifying its revenue generation to imports for luxury items, luxury life-styles, and reducing the cost of governance at different levels. There are many wasteful spending that can be scaled down to save money for government to meet its financial obligations which is the main thrust of the Minster’s argument.
These include the purchase of exotic vehicles for public office holders, foreign travels, high duty allowances, and foreign trainings for public officials. Others are blocking the conduit pipes and confronting corruption head on.
These and many others will spare a huge sum that can be channeled to more productive projects that will impact on the lives of the people.
The rush to impose new tax regime on consumers of telecom services will be self-defeating, if at the end of the day the only benefit it accrues to the government is more money to spend instead of better welfare for citizens.
The telecom services are no longer a luxury but necessary tools that Nigerians need to connect with the rest of the word, share their ideas, knowledge, and information for a much better society.
The government should not shut out Nigerians or make it impossible for them to reach out to the rest of the world to market their skills, talents, and products in return for the much needed foreign exchange which is the essence of the digital economy which is the fulcrum of the administration’s |economic policy.
Nigerians deserve efficient and affordable telecom services to conduct their business activities on a global scale, which the controversial 5% excise duty seems to negate. It is a right, not privilege!
Ibrahim Dan Halilu is an Abuja based media consultant and communication expert. He can be reached via email at [email protected] or mobile 08101064449 9SMS only).
Federal Government of Nigeria has marked a significant milestone on Friday, 14th February 2025, by breaking ground for the construction of the Sustainable & Emerging Technologies Institute (SETI).
This institute, under the aegis of the National Agency for Science and Engineering Infrastructure (NASENI), aims to ensure the socio-economic wellbeing of future generations. The groundbreaking ceremony was held at the Bayero University Kano (BUK) New Campus.
Mr. Khalil Suleiman Halilu, Executive Vice Chaiman/Chief Executive Officer (EVC/CEO) of NASENI, during the Ground-breaking ceremony held at the Bayero University Kano (BUK) New Campus said the new institute sits on 30 hectares of the BUK land to be built, featuring state-of-the-art facilities, including innovation hubs devoted to Artificial Intelligence and other cutting-edge technologies, complemented by reliable power supply. “NASENI will fully build and equip and support the new Institute” said the EVC/CEO.
The future of socio-economic development for nations rests on human creativity, innovation and cooperation, Artificial intelligence, robotics amongst others.
Halilu said that the establishment of SETI in Nigeria is to rapidly respond to the waves of young people globally revolutionizing world economies with unprecedented emergence of socio-economic frontiers as by-products of innovations and ingenuities of these young minds.
“We in NASENI are firm believers in the potential of young Nigerians to be the prime catalysts of the type of transformation that Nigeria requires. And we will do everything within our powers to support them to fulfil this important responsibility”
“We are gathered here today to kickstart a project that will transform the lives and careers of future generations of young Nigerians. The Sustainable & Emerging Technologies Institute (SETI), located at the Bayero University Kano (BUK) by NASENI. This is very much in line with our operating principles; what we call our 3Cs: Collaboration, Creation, and Commercialization. These 3Cs are the principles that passionately drive us and guide the work that we do to ensure the industrialization of Nigeria in line with the Renewed Hope agenda of President Bola Ahmed Tinubu.”
SETI will produce innovators, technologists, entrepreneurs who will make their mark not just in Nigeria but around the world. “I’m eagerly looking forward to the day, not too long from now, when the Institute’s first set of beneficiaries will astonish the world with what they’re capable of accomplishing. These stories will put not just BUK on the global innovation map, but also Kano State and the entire Nigeria” said Halilu.
While carrying out the symbolic foundation laying ceremony of the institute as Special Guest of Honour, the Minister of Innovation, Science and Technology, Chief Uche Geoffrey Nnaji, described the project as not only laudable but NASENI’s another way of fast-tracking the placing of Nigeria on the global map of innovation and industrialization. The minister called the project an “ace project” and a pointer to secure a veritable socio-economic development for the nation.
In his goodwill message, the Vice Chancellor of BUK, Professor Sagir Adamu Abbas described the new institute as a vehicle for bringing together the three critical tripods for economic and sustainable development for nations, that is, the government, academia and industry. He described the ground-breaking event as the beginning of Nigeria’s journey in pursuit of sustainable development, massive job creation opportunities for the youths, and that the BUK was delighted to be host to such laudable initiative and momentum.
There is also, in addition to SETI, a second NASENI project for BUK is an Agri-preneurship Training Hub, that will be equipped with modern greenhouses, and facilities for Soil-less Farming, and Tissue Culture; occupying 10 hectares of land at the Old Campus. These projects collectively represent what NASENI stands for, that is, building capacity, advancing industrialization, supporting economic growth and prosperity.
NASENI appreciates the Government and people of Kano State, and the Vice Chancellor, management and students of Bayero University Kano (BUK), for all the support. Special gratitude goes to the Honourable Minister of Innovation, Science and Technology, Chief Uche Geoffrey Nnaji, the Special Guest of Honour.
NASENI thanked members of the National Assembly for their support, especially the NASENI oversight Committees in both chambers. And of course, President Bola Ahmed Tinubu, who has given NASENI the opportunity to serve Nigeria through his unwavering demonstration of commitment to the success of the Agency.
The family of the late chieftain of the All Progressives Congress (APC), Chief Dr. Cairo Ojougboh, led by his wife, Mrs. Bose Ojougboh, marked his one-year memorial anniversary with a series of charitable initiatives aimed at honoring his legacy of philanthropy and service to society.
The memorial activities included the donation of school books and bags to pupils of Erigbe Primary School, in Agbor within the Ika South Local Government Area (LGA) of Delta State, where Dr. Ojougboh had received his early education.
The outreach also included extension of financial assistance to patients at Central Hospital, Agbor, and the provision of toiletries, cash, and food items to children at the Salve Regina Children’s Home, Agbor.
The outreach was carried out under the ‘Dr. Cairo Ojougboh Foundation’, a family-led initiative established to immortalise him and continue his lifelong commitment to education, healthcare, and social welfare.
Speaking during the event which took place recently, Mrs. Ojougboh reaffirmed the family’s dedication to sustaining the ideals of the late APC chieftain, describing him as a man who strongly believed in education and giving back to society.
“We are here to celebrate the life of my husband, Late Dr. Cairo Ojougboh, who passed on a year ago. In his honour, we decided to give back to society.
“He was a man who valued education and was always willing to help others. It is only fitting that we continue his legacy through acts of generosity,” she stated.
Honouring his passion for education
The first visit was to Erigbe Primary School, where Dr. Ojougboh had received his early education. The Foundation distributed school bags, writing materials, and food packs to the pupils. The family encouraged the pupils to take their education seriously and strive to become responsible citizens.
Supporting patients at Central Hospital, Agbor
At Central Hospital, Agbor, Mrs. Ojougboh and her entourage moved through the medical wards, offering financial support to patients to assist with their treatment costs. The hospital staff and beneficiaries responded with prayers and words of gratitude for the kind gesture.
Reaching out to orphaned children
The outreach team also visited Salve Regina Children’s Home in Agbor where they donated cash, food items, and toiletries to the children. The Matron of the home expressed her deep appreciation to the Ojougboh family, commending their commitment to sustaining the late politician’s legacy of compassion and social impact.
Dr. Cairo Ojougboh’s enduring legacy
Reflecting on her late husband’s contributions to society, Mrs. Ojougboh emphasised that his legacy of generosity and service to humanity would not be forgotten.
“Dr. Cairo was a selfless man who touched many lives. His contributions to the Nigerian political landscape, his mark in Agbor Kingdom, Delta State, and the country at large, will always be remembered. He may be gone, but his impact will continue to be felt for generations,” she said.
The Dr. Cairo Ojougboh Foundation has pledged to continue supporting education, healthcare, and social welfare initiatives in his memory, ensuring that his vision for a better society lives on.
Justice Folashade Ogunbanjo of the Federal High Court Abuja has discharged and acquitted Ishaq Kawu Modibbo, former director-general, National Broadcasting Commission (NBC), and Pinnacle Communications Limited.
Ishaq Kawu Modibbo, former director-general, NBC
They were being prosecuted by the Independent Corrupt Practices and other related Offences (ICPC) of charges bordering on the ₦2.5 billion released to Pinnacle Communications under the Federal Government Digital Switch Over (DSO) project.
Delivering judgement on Thursday, Justice Ogunbanjo held that the ICPC was not able to prove the allegations against the defendants.
The judge further discharged the defendants on the grounds that the statements and evidence of the witnesses, could not pin any allegation on the defendants.
She further held that some of the witnesses contradicted themselves, and none of their statements was able to link the defendants to the charge.
According to the judge, while some of the witnesses in their oral evidence, said Lai Mohammed, former Minister of Information, was misled in approving the payment of ₦2.5 billion to Pinnacle Communications Ltd, they failed to render any documentary evidence.
The trial of the former director-general of the NBC lasted for six years.
He and Pinnacle Communications were prosecuted by the ICPC, on a five count amended charge over the release of ₦2.5bn to Pinnacle Communications Ltd, under the approval of Mohammed, under the FG Digital Switch Over (DSO) project.
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