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.
Karl Toriola, chief executive, MTN Nigeria has defended recent tariff hikes by mobile network operators, stating they are essential for the “survival” of the telecoms industry in Nigeria, despite significant criticism.
Karl Toriola, chief executive, MTN Nigeria
The Nigerian Communications Commission (NCC) granted mobile network operators permission to raise tariffs by up to 50% last month, a change reportedly implemented on 11 February.
The increase has sparked public outrage, as mobile connectivity has become a vital necessity in daily life across the West African nation.
In an interview with Developing Telecoms, Toriola pushed back against criticism that the price surge was excessive, arguing that tariffs should have increased by approximately 300% to reflect the naira’s sharp devaluation and the country’s soaring inflation.
Addressing the impact of currency devaluation, Toriola emphasised that MTN purchases network equipment and software in US dollars, a process that has become significantly more expensive. With the naira’s decline, operators are now receiving three times fewer dollars than they did in 2023, making operations more challenging.
In February 2023, businesses could exchange 460 naira for one US dollar, but the currency has since devalued sharply. At the time of writing, a single dollar was worth 1,510 naira.
As Nigeria grapples with the sharp devaluation, MTN has been severely affected.
The company was technically bankrupt in 2023 as its liabilities surpassed its assets—a deeply concerning issue for the wider MTN Group, as Nigeria remains one of its highest revenue-generating markets.
“Because of these factors, we’ve seen our costs rise dramatically. The cost of leasing tower space and supplying energy to cell sites increased by 120% in the first three quarters of 2024. So, in comparison, a 50% tariff increase is not that high,” said Toriola.
The IoT West Africa & Data Centre Cloud Expo 2025, co-located with Power and Water Nigeria, is poised to play a crucial role in boosting Africa’s digital economy, projected to reach $180 billion by 2025 and contribute 5.2% to the continent’s GDP.
Shitij Taneja, Vertex Next Managing Director
Organized by Vertex Next, the three-day event will take place from May 13th to 15th, 2025, at the Balmoral Convention Centre, Federal Palace Hotel, Lagos. It will convene government leaders, industry experts, investors, and innovators to explore the latest advancements in IoT, AI, cloud computing, digital infrastructure, and energy solutions.
In a statement made available to journalists in Lagos, Vertex Next Managing Director, Shitij Taneja, stated that this influential event will significantly contribute to the continent’s digital economic growth.
He assured that the expo will feature a comprehensive conference program focused on the transformative power of IoT, AI, and digital technologies across various African industries.
According to Taneja, discussions will center on how these technologies drive economic expansion, improve connectivity, and increase efficiency in key sectors like telecom, energy, finance, and e-commerce. Government officials and business leaders are also expected to collaborate on strategies for scaling digital infrastructure and leveraging data for innovation and sustainable development.
As demand for secure, efficient, and scalable digital infrastructure surges, Africa’s data center market is expected to grow at a CAGR of 12% through 2030, reaching a valuation of over $5 billion.
The expo will feature high-level discussions on critical infrastructure development, investment opportunities, cybersecurity, and AI-driven data center expansion. Thought leaders from global cloud and data center giants will share insights into building future-ready facilities that power industries and drive economic progress.
With Africa’s power sector undergoing transformation, discussions will focus on smart grids, energy storage, and sustainable power solutions to support the continent’s growing digital economy.
The African Development Bank estimates that investment in energy and utilities must increase to $70 billion annually to meet rising demand. Industry leaders will explore the role of IoT and AI in optimizing utilities, managing resources efficiently, and developing smart, connected cities.
The rise of digital banking, fintech, and e-commerce is reshaping consumer experiences and financial transactions across Africa. The fintech sector alone attracted over $3 billion in investments in 2023, and e-commerce is projected to exceed $75 billion in value by 2028.
This expo will highlight how automation, AI, and IoT are creating secure, seamless, and scalable financial solutions, ensuring that businesses stay ahead in the fast-paced digital landscape.
Taneja disclosed that the IoT West Africa & Data Centre Cloud Expo 2025 aligns with Nigeria’s National Digital Economy Policy and Strategy (NDEPS) and Agenda 2063 of the African Union, both of which prioritize technological innovation, digital infrastructure, and economic diversification.
By bringing together policymakers and industry stakeholders, the event aims to support regulatory frameworks for digital transformation, foster collaboration between the public and private sectors, encourage foreign direct investment (FDI) in ICT and energy, and accelerate initiatives such as Smart Cities and e-Governance.
National Information Technology Development Agency (NITDA) has reaffirmed its dedication to fostering an innovative ecosystem that balances regulation with industry growth. The agency is investing in cloud infrastructure, data classification, and AI applications to establish Nigeria as a leading digital hub in Africa.
Kashifu Inuwa, NITDA’s Director General, emphasized this commitment while speaking at the Africa Hyperscalers Digital Infrastructure Outlook 2025. The event gathered industry experts to explore Africa’s role in the expanding global AI-driven infrastructure boom.
In his remarks, Inuwa highlighted NITDA’s dual regulatory framework: rule-based regulation, involving strict compliance guidelines, and non-rule-based regulation, which allows for industry-led innovation with established benchmarks.
“Before we regulate anything, we need to be aware of the landscape, we need to be intelligent, we need to have data and make sense out of that data, we need to be dynamic because technology is fast-changing and we need to develop that agility within the regulatory framework,” Inuwa stated.
He also discussed the Cloud First Policy, introduced in 2019 to discourage excessive reliance on physical data centres. This policy encourages government agencies and private businesses to leverage cloud computing and digital solutions. Initially, businesses were granted waivers to use public cloud infrastructure, but NITDA is now pushing for local data centres to enhance their capabilities.
A major milestone for NITDA was its successful engagement with global hyperscaler providers, including Google Cloud, which pledged to collaborate with local data centres to drive cloud adoption and establish a hyperscaler data centre in Nigeria. This follows a meeting between Google CEO Sundar Pichai and President Bola Ahmed Tinubu in Paris, where the President shared his transformative ambition for Nigeria.
To further drive cloud adoption, NITDA is finalizing a framework that will mandate data classification, ensuring that certain data categories remain within Nigeria. This move is expected to attract more cloud service providers and bolster the country’s digital sovereignty.
Emphasizing the importance of AI applications, Inuwa disclosed that NITDA is prioritizing AI to enhance governance, regulation, and service delivery. He asserted that AI can revolutionize governance and business operations by automating processes, enhancing regulatory efficiency, and developing knowledge management systems.
Dr. Nadu Denloye, Co-founder of Telnet Nigeria Limited, also spoke at the event, highlighting Africa’s remarkable digital transformation driven by connectivity advancements, cloud adoption, data centres, AI, and a growing digital-native population. She expressed confidence in crafting solutions to drive Africa’s digital growth.
Other notable panelists included Dr. Ayaotunde Coker, CEO Open Access Data Centres and Chairman of the Africa Data Centres Association; Johnson AgboGbua, CEO of Kasi Cloud; Obinna Isiadinso, Data Centres Global Sector Lead at International Finance Corporation; Kazeem Oladepo, Chief Operating Officer at IHS; and Abibat Kazeem, Commercial Director at Bayobab.
This commitment by NITDA underlines its dedication to advancing Nigeria’s position as a digital leader in Africa through innovative solutions and strategic regulations.
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