Telecom
Pantami Rejects FG’s 5 Per Cent Excise Duty on Calls
Prof. Isa Ali Pantami, minister of communications and digital economy, has said that he will take steps to ensure that federal government reverse its decision to impose five per cent excise duty on calls.
Isa Ali Pantami, minister of Communication and Digital Economy
Recall that the federal government recently imposed five per cent excise duty on telecommunications services, as effort to generate revenue to fund the national budget in the face of dwindling oil revenue.
But at the maiden edition of the Nigerian Telecommunications Indigenous Content Expo on Monday, in Lagos, Pantami, said “Beyond, making our position known today, we will go behind the scene and go against any policy that will destroy the digital economy sector. This is a sector we cherish so much and we are ready to go to any extent, legitimately and legally to defend its interest,”.
The minister disclosed that the Nigerian Communications Commission (NCC) was not contacted officially, while faulting the ruling making process that didn’t involve the chairman of House Communications Committee.
He said, “We have not been contacted officially. If we were, we would have pleaded our case. As a minister and based on the provision of the constitution of Nigeria, session 148, we are exercising power of Mr president.
“When VAT was increased to 7.5 per cent, I was not consulted, I only heard the announcement and I think there is something questionable about the process. the same page with our national assembly members. They too were not consulted despite the fact that they are part of the committee.
Pantami said the recent 2020 Q2 Gross Domestic Product (GDP) Report, released by the National Bureau of Statistics (NBS) showed that the Information Communications Technology (ICT) contributed an unprecedented 17.83 per cent to Nigeria’s total GDP, adding that the sector should be encouraged, and not discouraged by multiple taxation.
“You introduced excise duty to discourage luxury goods like alcohol. Broadband is a necessity. If you look at it carefully, Broadband contributes 2 per cent to 7.5 per cent to the economy. Imposing five per cent excise duty on operators will only bring hardship at this time, and that cannot be tolerated,” he averred.
Pantami however advised federal government to expand the scope, by taxing other sectors, while urging operators to come together and salvage the sector.
As efforts to support indigenous companies, the minister also tasked the Nigeria Office for Developing the Indigenous Telecom Sector (NODITS) to strictly enforce the National Policy for the Promotion of Indigenous Content in the Nigerian Telecommunications Sector.
The minister disclosed that the annual outflow of foreign exchange for the telecommunications sector amounts to approximately $2.16 billion, adding that this is a significant portion of the sector average annual budget and it is critical that this trend is reversed.
“There is also a higher percentage of foreigners among top management staff when compared with other staff, with Nigerians making up to 31 per cent, in relation to foreigners who make up to 69 per cent. For software, 77 per cent of software in use are foreign, while only 23 per cent are obtained locally
MTN Nigeria Communications PLC has announced that the Nigerian Communications Commission (NCC) has approved the renewal of the spectrum lease agreement between MTN Nigeria and Natcom Development and Investment Limited (NTEL).
Uto Ukpanah, Company Secretary in a statement released recently said that the agreement covers the lease of NTEL’s 5MHz frequency division duplex (FDD) in the 900MHz spectrum band and 10MHz FDD in the 1800MHz spectrum band, which spans 19 states.
The renewal is for another two-year period, effective 1 May 2025. Additionally, the NCC has approved a one-year lease expansion of the spectrums, covering the remaining 17 states and the Federal Capital Territory (FCT), effective 1 January 2025.
Commenting on the transactions, MTN Nigeria CEO Karl Toriola said, “We are pleased with the renewal of the spectrum lease agreement with NTEL, which now includes coverage for all states, including the FCT.
“The lease enables us to enhance our 3G and 4G user experience as we improve coverage and capacity by utilising the spectrums.
“This positions us to capitalise on the growing demand for data and improve the delivery of services to our customers.”
Nigeria’s technology company, Globacom, has extended warm felicitations to Nigerians on the occasion of the 2024 Christmas celebrations.
In a goodwill message released in Lagos, Globacom urged Nigerians to embrace the spirit of love and kindness during the festive season, especially in the face of prevailing economic challenges.
The company emphasized the importance of practicing the teachings of Jesus Christ, particularly the virtues of obedience to God and loving one’s neighbor as well.
“Christ taught many virtues including obedience to God and loving one’s neighbour as oneself”, the company said, adding, “Now is the apt time to practise these teachings by sharing with the needy”.
Globacom also encouraged Nigerians to extend the conviviality of Christmas beyond the festive season by fostering love, peace, and harmony, as demonstrated by God through the birth of Jesus Christ.
Assuring its customers of uninterrupted services throughout the Yuletide period and beyond, Globacom urged them to take advantage of its innovative products and services to stay connected and share the memories of the season with loved ones.
Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have ordered Deposit Money Banks and Mobile Network Operators to settle the long-standing N250bn USSD debt dispute before January 2, 2025.
The CBN and NCC also directed banks to pay the pre-Application Programming Interfaces (API) debt before July 2, 2025.
They also ordered that post-API debts be settled before December 31, 2024.
The directive was issued in a joint cirular titled, “2nd Joint Circular of the Central Bank of Nigeria and the Nigerian Communications Commission on the Resolution of the USSD Debt Issue Between Deposit Money Banks and Mobile Network Operators.”
The circular dated December 20, 2024, was signed by Oladimeji Taiwo, acting director of the Payments System Management Department, CBN, and Chizua Whyte, head of Legal and Regulatory Services, NCC.
The regulators said, “In view of the foregoing, the CBN and the NCC hereby direct DMBs and MNOs as follows: 1. That 60 per cent of all pre-API invoices must be paid as full and final settlement.
“Payment plans (lump sum or installments) must be agreed upon between a concerned DMB and MNO by January 2, 2025. Installments must be based on equal monthly payments, with full payment due by July 2, 2025.
“DMBs must pay 85 per cent of all outstanding invoices issued after the implementation of APIs (i.e., February 2022) by December 31, 2024.
“Similarly, 85 per cent of future invoices must be liquidated within one month of service.”
According to the regulators, the transition to end-user billing will be activated only for DMBs and MNOs that comply with the payment conditions cobtained in the circular.
CBN and the NCC said they would provide further guidance on public enlightenment initiatives related to the transition.
The regulators also directed MNOs to implement the “10-seconds rule” for USSD invoicing.
This implies that any session lasting less than ten seconds will not be billable.
The regulators added, “Failure to comply with the terms outlined in this directive will attract necessary sanctions, ensuring that both DMBs and MNOs uphold their obligations.”
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