Telecoms and Jigsaws of Power, Taxes and Security

The telecommunications industry, arguably the only thriving sector of nation’s economy hobbled by years of mismanagement and neglect is facing uncertain times. Uncertain times from the weights of; poor quality of service (QoS); multiple taxes; vandalisation of telecom equipment; and the notoriously unreliable public power supply. In the midst of the conspiracy threatening to dwarf the achievements of the industry in last ten years, there are assurances of brighter outlook with any concrete underpinning. But despite the assurances, the industry is hanging precariously, only managing with a lot of cosmetics. Beneath the fascia of the industry is the thorny issue of Nigeria’s public power supply, which seems to have defiled all known solution. A situation where telecom operators spend an incredible N45.9 billion (approximately $2.9 Billion) annual bill on diesels in running power supply to their infrastructure is unacceptable. It is unacceptable because the cost is passed to ordinary man. The operating companies are also feeling the pinch as the ordinary man look more and more reluctant to part the little he has. Overall, the industry is in a dire strait and unless something urgent is done to address the power problem, the industry may witness a sharp decline in the coming months. Power supply is like the nerve, in fact, the engine of production. The near absence of public power supply has a devastating effect on businesses and has forced many companies to close shop because they could no longer remain competitive. Admitted that power supply is out of the regulator’s sphere of control but instead painting a rosy picture, the regulator should be speaking of efforts in conjunction with managers of public power supply to prioritize supply to the industry. Elsewhere, the canker worm of multiple taxes by local, state and federal governments and their agencies is threatening the survival of the telecom sector. At last count, the industry estimate they pay over N10 billion annually to various agencies of government. Here, the NCC has done well by drawing attention to the clear and present dangers of multiple taxations in the telecom industry. But the NCC would need to go a step forward and draw from its political will to prevail on the states and local governments to stop insisting on collecting taxes and levies on operators’ infrastructures such as base stations and masts. Also, the problem of insecurity, which has assumed alarming proportions, is discouraging further investments. Added to this, are the constant harassment, intimidation and killing of workers in the industry while equipment are stolen every day. Clearly, the industry still requires investments in network infrastructure to ensure full access across the country, and to guarantee good and acceptable quality of service. But it can only come with the removal of these roadblocks.