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Multiple Taxation Threatening Telecoms Sector—NCC

Telecoms Sector

The Nigerian Communications Commission, NCC, has said that telecommunications industry in the country is struggling with the issue of multiple tax system, which might wreck it if urgent steps are not taken by the government to salvage the situation.

This alarm was raised in Abeokuta, Ogun State on Tuesday when the Vice-Chairman of NCC, Prof. Umar Danbatta, made a courtesy call to the state Governor, Ibikunle Amosun, at his office at Oke Mosan.

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The NCC boss pointed out that multiple taxation from states and local governments across the country, if not tackled holistically, might ruin the sector.

Danbatta told Amosun that the Memorandum of Understanding signed between Nigerian Governors’ Forum ‎and the Ministry of Communications, which covered all the issues, was not adhered to.

“There have been recurring cases of multiple taxation which threaten the operators and by extension telecommunications services.

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“There have also been issues of Right of Way approvals to telecoms companies. Various tiers of government including local council and state government agencies have created enormous challenges to the sector.

“And some of these agencies of government threaten to shut down Base Transceivers Stations over alleged refusal of the telecoms companies to comply with a tax regime, which the operators see as grossly excessive and at times inappropriate.

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“The operators are in a dilemma. ‎And because of this, expansion of the networks is heavily stifled,” he said.

Responding, the Governor vowed to discuss the issues raised with his colleagues when they meet and explain to them the need to synchronise taxes payable by telecoms operators in the respective states.

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Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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