The Nigerian Communications Commission (NCC) has said that despite its efforts and recent executive orders issued by President Bola Tinubu on taxes, the telecom industry is still burdened with hidden taxes.
The Executive Commissioner, Stakeholder Management at the NCC, Adeleke Adewolu, stated this while addressing stakeholders at the combined second and third quarters 2023 meeting of the Industry Working Groups (IWG) on multiple taxation and regulations in the telecoms sector.
While noting that the IWG has achieved a lot over the years, he said a lot of work still needs to be done “as the industry is still beguiled by arbitrary Right of Way (RoW) charges, hidden nuisance taxes and unauthorized regulatory encroachment into the communications industry.”
As such, he said the Commission has continued to work assiduously to ensure harmonization of RoW charges across the country.
He said aside from several existing agencies the Commission has been working with, it is also collaborating strategically with sister agencies such as the Federal Inland Revenue Service (FIRS), in line with the National Economic Council (NEC) resolution of 2012 and the Nigerian Maritime Administration and Safety Agency (NIMASA).
Streamlining regulation
Highlighting other regulatory partnerships aimed at addressing some of the challenges of the telecom industry, Adewolu said:
- “We are also working with the Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA), all in a bid to ensure the regulatory actions taken by the agencies are well synchronized with the regulatory objectives of the Commission, in a manner that boosts market development and industry sustainability.”
While tasking telecom licensees to continue to bring burning issues on multiple taxation and regulation to the attention of the Commission as they experience in their daily operation, Adewolu also assured them of NCC’s decision to always make necessary regulatory interventions to boost industry growth.
IWG’s achievements
Addressing the meeting, attended by senior executives of telecom licensees and their umbrella body, the Association of Licensed Telecom Operators of Nigeria (ALTON), as staff of the Commission, Adewolu said the IWG’s activities are geared towards ensuring fair tax policies and eliminating every incident of multiple taxation and regulations impacting the Nigerian telecommunications industry.
He stated that the industry has recorded a lot of milestones since the establishment of the IWG over two decades ago, as the platform has proven to be effective in articulating industry concerns in this area and also proffering solutions to these issues.
- “Considerable industry gains have been recorded lately, particularly regarding the issue of multiple taxation. For instance, His Excellency, President Bola Ahmed Tinubu recently signed Four Executive Orders designed to curb multiple taxation in the Country.
- “Key amongst them is the Executive Order for the suspension of the 5% Excise Duty on telecommunication services as well as Excise Duties escalation on other locally manufactured products,” he said.
He described the gains as laudable as, according to him, they continue to serve as inspiring landmarks for the industry, underscoring what can be achieved when the entire industry comes together harmoniously to speak with one voice on existential concerns undermining the economic health of the communications industry.
