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Home Business News

FG queries states over RoW charge increase 

Chidinma Nwagbara by Chidinma Nwagbara
January 16, 2020
in Business News, Politics
FG directs the suspension of NIMC staff involved in extortion of NIN applicants, SIM. Social media accounts monitoring, FG completes 11 projects to drive Digital Economy, FG orders NIPOST to stop cash transactions , Pantami moves to ban automatic voicemail service by telcos  , Why Nigeria’s Data woes may not end soon , Pantami reacts to CBN’s ATM fee cut, keeps mute on directive to cut data cost , Pantami condemns FIRS move to collect stamp duty, MTN, Airtel, others disregarding Pantami’s voicemail, data directives on all front , FG warns State governments against RoW charge increase, FG reiterates commitment towards implementing broadband strategy ,FG reiterates commitment to 75% broadband penetration in 5 years , Pantami tasks Youth on developing creative and entrepreneurial digital skills

Dr Isa Ali-Pantami

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The Federal Government (FG) has queried some states against their decision to increase the Right of Way (RoW) charges levied Telcos, demanding reasons for the review. This came after some states increased the charges Telcos pay to lay fibre cable across the country.

The development, according to FG, is not in accordance with the rule laid by the National Economic Council, which states that the companies are expected to pay N145 per linear metre to lay the cable.

Demanding N3,000 or N6,000 for the same purpose has been described as unfair and counterproductive by the Federal Government. In a statement signed by the Minister of Communications and Digital Economy, Isa Pantami, FG has urged the concerned states to reverse the decision to increase the charges.

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What you should know: The Right of Way (RoW) charges refer to fees paid by telecommunications operators to the government for permission to install some of their infrastructures.

[READ MORE: FG to strengthen economic ties with Turkey)

Why this matters: Pantami stated that if the charge was not reversed, the state governments would be undermining Nigeria’s socio-economic development, especially efforts to deepen broadband penetration in the country. Away from that, it would also lead to a higher cost of telecommunications services for the consumers.

Pantami words: “We are calling on all state governors, especially those that have made public their decision to increase the RoW charges, to reconsider these decisions in the interest of Nigerians as well as for the socio-economic growth and development of the country.

 “We also draw their attention that these decisions, if implemented, will result in an increase in the costs of operations of the telecoms operators which will naturally be passed to the consumers.

“We received with dismay the decision of some states of the federation to increase the Right of Way charges in disregard of the resolutions reached by the National Economic Council.

 “It may be recalled that in 2013, NEC set up a committee comprising state governors and ministers to review the issues of multiple taxations in the telecommunications industry in Nigeria and its impact.

 “The committee, after extensive and wide-ranging consultations, resolved to harmonise the taxes applicable to broadband-related activities and streamline the taxation management processes across the federation.

 “Specifically, to deepen broadband penetration for the social and economic development of the country, the committee agreed to the uniform Right of Way charge of N145.00 per linear meter of fibre,” Pantami told Punch.


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Tags: chargesDr. Isa PantamiFGincreaseNational Economic CouncilqueryRoW chargesStatesTelcos
Chidinma Nwagbara

Chidinma Nwagbara

Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - chidinma.nwagbara@nairametrics.ng

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Comments 1

  1. Adewale says:
    January 20, 2020 at 9:17 am

    The ROW charge , is it a one off? or is it per annum? Kindly shed more light. Thank you

    Reply

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