NITRA Backs Telecoms Stakeholders, Says Over-Regulation Stifles Growth

As watch-dog of the society, the Nigeria Information and Communications Technology Reporters' Association (NITRA), has aligned with telecommunication industry in pushing for balanced tax system to encourage more investments in the sector.

Mr. Emma Okonji, president of the Association made the remark during his speech at the third quarterly seminar of the Association held in Lagos at the weekend, adding that over-regulation of the telecoms industry could stifle growth of the Nigerian telecoms sector that has been adjudged as the fastest growing market in Africa and the world.

Established in November, 2013, NITRA is the umbrella body of all ICT journalists in Nigeria, cutting across the print, broadcast and online media, with a vision to drive ICT development and ensure accurate and robust ICT reportage.

“As watch-dog of the society, we have a duty as telecoms reporters to protect the gains of the industry and it is for this reason that NITRA thought it wise to bring together, the government, the operators and the subscribers, to find a common ground where the issue of multiple regulations and taxes could be addressed amicably, in the interest of subscribers and for the continued growth of the sector”.

He said that the theme of the seminar, 'Impact of Over-Regulation of Telecoms Industry on Service Quality,' was carefully selected and falls in line with NITRA’s vision to provide platform where issues of national interest would be discussed.

Okonji said that since the inception of GSM in 2001, the telecoms industry has contributed immensely to the country's Gross Domestic Product (GDP) and it has transformed businesses and lifestyles of individuals.

According to recent statistics released by the National Bureau of Statistics (NBS), the telecommunications sector contributed N1.58 trillion to GDP in the second quarter of 2016, which is about 9.8 per cent contribution, and this represents an increase of 1.0 per cent points relative to the previous quarter.

The National Bureau of Statistics described the contribution as the largest contribution to GDP made from the telecoms sector in the rebased period, which emphasises that growth in telecommunications has remained robust when compared to total GDP of the country.

“The total number of subscribers has increased rapidly over the past decade. As at 2001, when GSM services were first rolled out, Nigeria had 400,000 active telephone lines, with a teledensity of 0.4 per cent, but at the end of 2005, four years after GSM services were rolled out, active subscriber number rose to 19.5 million. At the end of 2015, 10 years after, Nigeria recorded 151 million active subscribers across networks, which is equivalent to an increase of 13 million every year.

“As of today, the number of active subscribers has increased to over 157 million, with a teledensity of 107 per cent.

“Apart from offering voice calls, telecoms operators are also offering data services and mobile internet connectivity.

“According to NCC statistics, mobile internet subscriptions from GSM operators, reached a total of 92.2 million in June 2016. This means that, of the 157 million active GSM lines, 61.79 per cent has internet subscriptions.

“The contribution of the telecoms sector to the Nigerian economy, is immense, but the issues with multiple taxation and regulation are becoming sources of worries to telecoms operators and industry stakeholders.

“It is our belief as telecoms reporters, that over-regulation of the telecoms industry could stifle growth of the Nigerian telecoms sector that has been adjudged as the fastest growing market in Africa and the world.

“As watch-dog of the society, we have a duty as telecoms reporters to protect the gains of the industry and it is for this reason that NITRA thought it wise to bring together, the government, the operators and the subscribers, to find a common ground where the issue of multiple regulations and taxes could be addressed amicably, in the interest of subscribers and for the continued growth of the sector”.

The seminar attracted industry stalwarts including the NCC, ATCON, ALTON, Airtel, and other agencies.