Excessive taxation on telcos counterproductive – NCC

The Nigerian Communications Commission (NCC) Tuesday appealed to states and local government councils across the country to cut taxes imposed on telecom companies, asserting that excessive taxation would be counterproductive to the growth of the industry. 

NCC’s Executive Vice Chairman, (EVC) Dr Aminu Wada Maida made the remarks on Tuesday at the Digital Economy Complex, Mbora,  Abuja, during an interactive session with Reporters covering the Information and Telecommunications Sector.

Maida lamented that with between 50 to 55 percent taxes already imposed on telecom operators, it would be difficult to attract foreign investments into the sector in line with President Bola Tinubu’s directive to the NCC. 

According to the EVC, the NCC management has decided to embark on nationwide advocacy to appeal to States and local governments as well as other stakeholders on the need to reduce levies they imposed, especially the Right of Way (RoW) charges and other multiple taxes. 

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“We are going to be going on an advocacy campaign to see how we can convince the states to remove some of these obstacles like Right of Way and multiple taxations because I have seen some studies which indicate taxation is almost 50% getting to 55% in some areas in this country. 

“And you would agree with me that if we are trying to bring in foreign investment that is not a good picture to paint ,” the NCC boss said. He appealed to states to consider the long-term benefits that would come to them if they allow massive investments in the sector as job opportunities would be created alongside other value chains in the sector”, the NCC boss said.  

He also disclosed that the dispute between the two telecom giants,  MTN Nigeria and Globacom network would be resolved amicably soon as the Commission is more interested in a level playing ground for all stakeholders. 

He said the Commission has developed a strategic Vision based on five pillars to drive the telecom industry and ensure that it continued to contribute to the Gross Domestic Product (GDP) of the country as expected. 

The EVC acknowledged the challenges associated with quality of services from Mobile Network Operators (MNOs) and Internet Services Providers (ISPs), saying that the Commission would adopt “a total consumer experience” to address the challenges.