Telecom
NCC Stays with Consumers in the Face of 5 Per cent Excise Duty
Recently at a stakeholders’ meeting in Abuja, organised by the Nigerian Communications Commission (NCC), the federal government disclosed her resolve to commence the implementation of five percent excise duty on telecommunications services in the country.
According to Mr. Zainab Ahmed, the Minister of Finance, Budget and National Planning, through Frank Oshanipin, the Assistant Chief Officer in the ministry, “the five per cent excise duty has been in the Finance Act 2020 but hasn’t been implemented. The delay in implementation was as a result of government’s engagement with stakeholders”.
He further said that the duty rate wasn’t captured in the Act because it is the responsibility of the President to fix rate on excise duties and has fixed five per cent as the duty rate for telecommunication services, which include, GSM services.
Oshanipin added: “It is public knowledge that our revenue cannot run our financial obligations, so to that effect we are to shift our attention to non-oil revenue. The responsibility of generating revenue to run government lies with us all.”
The Role of NCC in the 5% Excise Duty
NCC is the federal government agency that regulates telecommunications sector of the country’s economy. It is wrong for anybody to attribute the 5 percent excise duty on telecommunications service to the commission. That NCC organised the stakeholders’ meeting where the announcement was made does not mean that it came from the Commission.
As stated in the presentation made by the representative of minister of Finance, the five per cent excise duty is contained in the Finance Act of 2020 and the percentage determined by the President.
However, the Commission opposed the implementation date of the duty as stated in the opening remarks of Prof. Umar Garba Danbatta, the Executive Vice Chairman/CEO of the Nigerian Communications Commission, who was represented at the meeting by Adeleke Adewolu, the Executive Commissioner, Stakeholders Management: “As communicated in the federal government Circular of March 1, 2022, the five per cent Excise Duty was to have been implemented as part of the 2022 Fiscal Policy Measures, but the industry considered the earlier scheduled commencement date of June 1, 2022 inadequate and we duly took this up with the federal government.”
More so, in opposition to the excise duty Prof Isa Pantami, minister of Communications and Digital Economy, also rejected the planned implementation of the five percent excise duty on the telecommunications sector by the Federal Government.
The minister faulted the timing and process of imposing the tax on the industry, arguing that part of the responsibility of responsive government is not to increase the problems of the citizens.
Speaking at a forum organised by the Nigeria Office for Developing the indigenous Telecom Sector (NODITS), an agency domiciled in the Nigeria Communications Commision (NCC), he said he is not in support of excise duty.
“I have not been contacted officially. If we are, we surely will state our case. The sector that contributes to the economy should be encouraged,” Pantami said. “You introduce excise duty to discourage luxury goods like alcohol. Broadband is a necessity.
“If you look at it carefully the sector contributes two per cent excise duty, 7.5 per cent VAT to the economy and you want to add, more” he said, adding hardship at this time cannot be tolerated.
He urged the tax masters to expand the scope of other sectors that are not contributing to the economy to do so.
“We must come together and salvage the sector. Only telecom sector contributed 13 per cent and you want to add more.”
Pantami faulted the lawmaking process that produced the harsh tax because it didn’t involve the chairman of the House Communications Committee. “So, we reject it,” he said.
According to him, further tax on the sector will impact on its contribution to the country’s Gross Domestic Product (GDP).
NCC on Reduction of Tariff in the Industry
The commission has over the years demonstrated that consumers of telecommunications services must be treated fairly and protected from incessant tariff increase by operators.
It is on record that NCC has implemented policies and programmes that give consumers voice in expressing their dissatisfaction of services or treatments by operators such as consumer outreach programmes among others.
Through effective regulatory efforts, it has ensured that the cost of making calls has crashed from around N70 per a minute to around N20 per minute. The commission has prevented mobile network operators from just increasing tariff any-how, and that tariff or promotions of any kind that may lead to traffic increase are reviewed by NCC to ensure they are fair to consumers.
Interestingly, a reverse of common trends in the country where price increases never come down is witnessed in telecommunications sector as calls and data cost have consistently been going down from where it used to be. This is a testament of NCC’s consumer -centric approach to regulation of the industry.
The commission has also revealed plans to reduce the price of data to N390 per Gigabyte by 2025, as contained in the Nigeria National Broadband Plan. And is assiduously working to realise this objective. Among such efforts is its plans to introduce a licencing framework for the establishment of Mobile Virtual Network Operators (MVNOs) in Nigeria, which will lead to the massive penetration of broadband services to the unserved and underserved areas of the country.
Just recently, ALTON wrote a letter to the NCC, calling for an upward review of the cost of SMS from N4 to N5.61k and voice call termination rate from N6.40k per minute to N8.95k per minute. The operators said the move to increase the cost of telecom services became necessary due to the high cost of delivering telecom services across networks, coupled with the harsh business environment and the continuous rise in the cost of various items in various sectors of the Nigeria economy among others.
However, the commission responded by issuing a statement to allay subscribers’ fears over the planned hike of the voice call, SMS, and data service costs by 40 per cent.
According to the statement, “For the avoidance of any doubt, and contrary to MNOs’ agitation to increase tariffs for voice and Short Messaging Services (SMS) by a certain percentage, the commission wishes to categorically inform telecoms subscribers and allay the fears of Nigerians that no tariff increase will be effected by the operators without due regulatory approval by the commission.”
The statement read: “The demand being made by MNOs under the auspices of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), citing the high cost of running their operations as the major reason for their proposed tariff hike, is contained in a letter to the commission.
“Consistent with international best practice and established regulatory procedures, the NCC ensures its regulatory activities are guided by regular cost-based and empirical studies to determine the appropriate cost (upper and floor price) within which service providers are allowed to charge their subscribers for services delivered.
“The commission ensures that any cost determined, as an outcome of such transparent studies is fair enough as to enhance healthy competition among operators, provide wider choices for the subscribers as well as ensure the sustainability of the Nigerian telecoms industry.”
NCC noted that tariff regulations and determinations were made by the commission in line with the provisions of Sections 4, 90, and 92 of the Nigerian Communications Act (NCA) 2003, which entrusts the commission with the protection and promotion of the interests of subscribers against unfair practices including but not limited to; matters relating to tariffs and charges.
NCC said the current tariff regime administered by the service providers was a product of NCC’s determination both for voice and SMS in the past.
Telecom
IHS Nigeria Hosts Telecom Industry Stakeholders to Discuss Protection of Critical National Infrastructure in Lagos State
IHS Nigeria, part of the IHS Holding Limited (NYSE: IHS) (“IHS Towers”) group, one of the largest independent owners, operators, and developers of shared communications infrastructure in the world by tower count, recently hosted a high-level meeting of stakeholders in the telecommunications industry including regulators and law enforcement agencies, at its corporate headquarters in Lagos.
The meeting was organized to develop a multi-stakeholder action plan for the protection of Critical National Information Infrastructure (CNII) assets in Lagos state.
Recognizing the importance of communications infrastructure as the backbone of national security, economic growth and social cohesion, the stakeholders at the meeting convened under the umbrella of the Association of Licensed Telecoms Operators of Nigeria (ALTON) agreed on the urgent need for collaborative solutions to ensure the protection of these vital assets.
The meeting was attended by senior representatives from the telecommunications stakeholder groups and regulatory bodies including the Nigerian Communications Commission (NCC), the Association of Licensed Telecoms Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON) and the Lagos State Infrastructure Maintenance and Regulatory Agency (LASIMRA).
Also in attendance were representatives from the Mobile Network Operators (MNOs), and InfraCos as well as the Nigeria Security and Civil Defence Corps (NSCDC), the security agency tasked with the protection of Critical National Infrastructure across the country.
Following extensive deliberations, the stakeholders resolved to establish a working group dedicated to addressing key industry challenges, including the vandalization and theft of telecommunications infrastructure, arbitrary shutdown of base stations, fiber cuts due to road construction and the denial of access by unauthorized individuals by leveraging technology for real-time monitoring and protection, strengthening security measures around telecommunication sites and collaborating more with the security and regulatory agencies to mitigate these challenges.
The stakeholders underscored the need to prioritize deterrence and prevention of these incidents and highlighted the importance of public awareness campaigns to sensitize the host communities and public of the need to protect telecommunications infrastructure in their localities.
Dapo Otunla, Senior Vice President & Chief Corporate Services Officer of IHS Nigeria, commented, “The protection of Critical National Information Infrastructure (CNII) has been a critical concern for all industry stakeholders.
“We are experiencing daily losses of assets, which significantly impact on the quality of service delivered to subscribers. Addressing these issues is paramount to sustaining Nigeria’s digital ecosystem and meeting regulatory expectations.”
Over 1ooo athletes are already set to participate in the upcoming MTN Champs Continental Relays, taking place between April 9 and April 12 at the UNILAG and Yabatech Sports complexes. Organisers anticipate even more registrations before the April 2 deadline.
MTN Champs is Nigeria’s largest grassroots sports competition, a collaboration between MTN Nigeria and Making of Champs (MoC), providing a platform for young athletes to showcase their talents and potentially represent Nigeria on the global stage.
Osaze Ebueku, Senior Manager, Go-to-Market at MTN Nigeria at the opening ceremony of the MTN Champs Classics events in Benin had emphasised the long-term vision behind MTN Champs: “We’re building future Olympians for Nigeria. MTN Champs is about more than competition. It’s about changing lives.”
The continental relays mark the second leg of the MTN Champs Season 3, following the Classics competition in Benin, which saw 4,371 event entries from 2,056 athletes.
As of March 24, the Lagos leg had already recorded 2,821 event entries across different age categories, highlighting the growing enthusiasm around the competition.
The registered athletes are spread across four categories, with 174 in the Cadet (U-14) category, 388 in Youth (U-17), 270 in Junior (U-20), and 279 in the Senior category.
To ensure smooth participation, organisers have outlined important guidelines. Athletes in the Cadet, Youth, and Junior categories must submit a signed Parental Consent Form, while all registered schools and athletes must collect their competition bibs by April 8 at the competition venue to confirm their participation and secure their place on the start list.
Sports enthusiasts can look forward to an electrifying showcase of emerging talent, as young athletes seize the opportunity to prove their skills on a professional stage.
Telecom
Again, Labour Fumes, Threatens Shutdown of Telcos over Non-Implementation of 15 Percent Tariff Reduction
Nigeria Labour Congress (NLC) is threatening to shut down operations of telecommunications companies over their refusal to comment on the 15 percent reduction in telecom tariffs.
Recall that that organised labour, through the NLC, forced the federal government and NCC to reduce the telecommunications tariff hike from 50% to 35% after threatening to shut down telecom operations and the NCC in response to what it saw as exploitative economic policies amidst excruciating suffering, hardship, and deepening poverty.
The government had previously formed a 10-member committee, consisting of five government and NLC representatives, to deliberate on the thorny topic of tariff hikes within two weeks and report back before making a final decision on the new telecom tariff structure.
Consequently, on Friday, February 21, 2025, the committee, at a meeting conducted in the office of the National Security Adviser (NSA) that lasted nearly three hours, decided on a 15 per cent tariff cut.
According to reports, in accordance with the conditions of the agreement, an official communiqué announcing the tariff reduction was scheduled to be released on Saturday, February 22.
According to Chronicle,iIt was said that the meeting began at 4:00 p.m. and concluded around 7:00 p.m., during which NLC representatives insisted that the tariff hike be withdrawn.
According to sources, after significant pressure from NLC representatives in the 10-man committee, the government and NCC gave up and agreed on the 15% decrease, which the government or NCC should have announced the next day.
However, at the time of this report, no such announcement has been made.
Leaders of the labour union are not taking the government’s failure to announce or implement the 15% tariff decrease lightly, suspecting that they have been duped.
The Labour leaders have therefore resolved to directly confront the NCC and telecommunications operators next week.
Though it has been reported that the date for the start of the industrial action against the NCC and telecom providers has been set and mobilisation is underway, the information is being closely guarded.
One of the leaders of the NLC stated that “We have received directives to commence mobilisation since last week. In fact, the date for the commencement of industrial action against the NCC and telecommunication operators’ offices across the country has been fixed. We have been warned not to disclose the date because the plan is to take all concerned by surprise. We are not giving any notice because we thought we had resolved this matter over a month ago. It is as if we have been scammed. Therefore, we have decided to confront the matter head-on.”
On February 12, the NLC expressed outrage over telecommunications companies’ tariff hikes, despite an earlier agreement with the Federal Government and the NCC.
According to the Labour union, “If the telecommunications companies fail to revert to the old tariff by the end of February 2025, a total shutdown of their operations nationwide will commence on March 1, 2025.”
To demonstrate its seriousness, the NLC declared that, as a first step in resisting the arbitrary tariff hike, it directed that workers and other willing citizens boycott the services of MTN, AIRTEL, and GLO daily between 11:00 a.m. and 2:00 p.m. until the end.
On Tuesday, February 11, NLC leaders issued a communiqué at the conclusion of their Central Working Committee (CWC) meeting in Lokoja, Kogi State, urging workers and citizens to suspend data purchases from telecommunications companies, which have also become one of their most effective tools for exploiting Nigerian citizens.
The communiqué, signed by Joe Ajaero and Emma Ugboaja, Congress’ President and General Secretary, respectively, instructed NLC State Councils and industrial union affiliates to quickly sensitise and mobilise their members and the general public in their jurisdictions.
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