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Senate Proposes 10% Tax on Use of GSM, Pay TV

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By Adedapo Adesanya

Following the strong opposition to the increase in Value Added Tax (VAT) proposed by the federal government and announced by Minister of Finance, Mrs Zainab Ahmed few weeks ago, the Senate has proposed an imposition of tax on communication and cable television services.

The bill for an Act to establish the Communication Service Tax was moved on the floor of the Senate on Wednesday and sponsored by former Senate Leader, Mr Mohammed Ali Ndume.

The Communication Service Tax Bill proposes to charge nine percent tax for the use of the communication services like calls and data usage and an extra one percent charge on Social Intervention Programme.

According to sponsorof this bill, the introduction of this new tax would replace the proposed 2.2 percent increase in the VAT suggested by federal government.

Mr Ndume said the imposition of tax on communication service was a better way of distributing wealth in such a way that would not affect an average citizen of the country.

The Senator explained that increasing VAT would have very serious effect on the economy as it could affect prices of goods and services and take them beyond the reach of the people.

“While the 2.2 percent increase in the VAT affects all Nigerians, the 10 percent Communication Services tax affects only those who could afford the use of GSM in the country.

“It is the lack of distribution of resources in the country that is fueling insecurity and all manners of criminality in the country,” he said.

“There shall be imposed, charged payable and collected a monthly Communication Service Tax to be levied on charges payable by a user of an Electronic Communication Service other than private Electronic Communication Services,” a part of the Communication Service Tax Bill read.

The bill further stated that, “The tax shall be levied on Electronic Communication Services supplied by Service Providers.

“For the purpose of this clause, the supply of any form of recharges shall be considered as a charge for usage of Electronic Communication Service.

“The tax shall be levied on such electronic communication services like voice calls, SMS, MMS, data usage – both from telecommunication services providers and internet service – as well as pay per view TV stations.

“The tax shall be paid together with the electronic communication service charge payable to the service provider by the consumer of the service,” it further read.

On the agencies charged with the responsibility of collecting the tax, the bill said, “The Federal Inland Revenue Service (FIRS) established under section 1 of the Federal Inland Revenue Service (Establishment) Act, 2007 shall be responsible for collection and remittance of tax, any interest and penalty paid under this Bill.”

“The FIRS shall pay the tax collected together with any interest and penalty into the Federation Account,” it added.

The bill further stated that all service providers shall file a tax return to account for the tax and proposed a penalty that reads, “A service provider who without justification fails to submit to the FIRS the tax return by the date is liable to a pecuniary penalty of N50, 000.00 and a further penalty of N10,000.00 for each day the return is not submitted.”

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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Protecting Telecommunications Infrastructure: A National Imperative for Nigeria’s Digital Future

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Femi Adeniran

By Femi Adeniran

Imagine waking up one morning to find no internet, no mobile network, and no access to emergency services—all because a single fibre cable was carelessly severed during routine construction. This is not just a hypothetical scenario; it’s a reality that plays out daily across Nigeria, threatening the backbone of our digital economy and undermining national security.

The Federal Government’s recent designation of telecommunications assets as critical national infrastructure is a landmark decision that underscores the strategic importance of connectivity in today’s Nigeria. Telecommunications infrastructure is not just about phone calls or browsing the internet; it powers vital sectors like education, healthcare, banking, and public safety. In a world increasingly defined by digital transformation, the integrity of our telecom networks is as critical as our roads, bridges, and airports.

Yet, this critical infrastructure faces relentless threats. Fibre cuts—primarily caused by construction activities, vandalism, and a lack of coordination between stakeholders—have become an epidemic. On average, operators report multiple incidents daily, disrupting services to millions of Nigerians.  Airtel Nigeria alone records a daily average of 43 fibre cuts and in the last six months, a total of 7742. These interruptions not only inconvenience consumers but also hinder businesses, delay government operations, and compromise public safety, particularly in emergencies.

The dry season, while ideal for construction and public works, has exacerbated the problem. With an increase in road and building projects, the frequency of fibre cuts has spiked alarmingly. This trend jeopardizes Nigeria’s broadband penetration goals and the collective efforts to harness technology for economic growth and social inclusion.

This is therefore a clarion call to all stakeholders—government agencies, security agencies, construction companies, telecom operators, the media and civil society—to collaborate urgently in safeguarding Nigeria’s telecommunications infrastructure. Beyond policy declaration, there is a need to urgently move to practical actionable steps some of which are:

  1. Stronger Enforcement and Coordination: Security Agencies and Regulatory bodies, must enforce stricter penalties for fibre damage while creating platforms for seamless coordination between construction companies and telecom operators.
  1. Regulating and Monitoring the Operations of Construction Companies: Construction companies to be regulated and monitored to ensure they accord similar status to telecom assets as they do to assets of other utility companies.
  1. Right-of-Way (RoW) Simplification: Streamlining the RoW process will ensure operators can bury cables securely and proactively plan for infrastructure protection in partnership with local governments.
  1. Adoption of Technology: Leveraging geospatial mapping and real-time monitoring tools will enable better identification of high-risk zones and faster response to incidents.
  1. Increased interest and Support from the Nigerian Media: Media stakeholders should support Public and private sector actors to drive must targeted campaigns and public enlightenment on the importance of telecom infrastructure and the dire consequences of fibre cuts.

Nigeria’s digital economy is a critical pillar of our national development strategy. To achieve the ambitious targets of the National Broadband Plan 2020-2025 and unlock the full potential of critical initiatives of the Federal Government like the 3 Million Technical Talents (3MTT) which aims to train and find job placements for 3 million Nigerian youths (local and international) by 2027, the “Project 774” of the Federal Government of aimed at digitizing all the 774 local government offices across the country for efficiency, and private sector-led developmental initiatives such as the Airtel-UNICEF Reimagine Education Project where Airtel Africa has committed $55m to connect children to digital learning across the 14 countries of its operations in Africa, with Nigeria taking the lead,  our telecommunications networks must be protected with the same rigor we reserve for our power grids, water systems, and transportation networks.

The time to act is now. Together, we can ensure that Nigeria’s telecommunications infrastructure remains resilient, reliable, and ready to power the future. Failure to act will cost us more than just dropped calls—it will jeopardize our journey to a truly connected nation.

Femi Adeniran is the Director for Corporate Communications and CSR at Airtel Nigeria

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3 Key Lessons from the Digital Transformation and Cybersecurity in Africa Conference

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By Paolo Abamwa

Last month, The American Business Council, brought together cybersecurity experts, tech leaders, and industry professionals for a cybersecurity conference themed Digital Transformation and Cybersecurity in Africa: Enhancing Information Security Using AI.

The event focused on how Africa can leverage AI to strengthen its digital infrastructure and address the region’s growing cybersecurity challenges.

Yellow Card was fully engaged in the discussions and networking with stakeholders, highlighting their Payments API and how it can help companies seamlessly integrate stablecoin payments for cross-border transactions across Africa.

Cybersecurity, AI, and Africa’s Digital Future

A standout moment at the conference was the panel discussion on “Harmonizing African Cybersecurity Policies and its Impact on Digital Transformation.” George Kisaka, Information Security Governance, Risk and Compliance Specialist at Yellow Card joined to speak about the urgent need for African nations to strengthen their cybersecurity laws.

He stressed that to keep pace with global standards, African governments must build robust frameworks to protect their citizens and businesses from cyber threats. He argued that, just as Western countries have robust laws to protect their citizens, African governments must implement similarly strong cybersecurity laws to safeguard their citizens’ digital experiences. He also called for unity across the continent, stressing that harmonized cybersecurity policies are essential for protecting both businesses and individuals.

The conversation also delved into the role of AI in Africa’s digital transformation. While some attendees expressed concerns about AI replacing jobs, the speakers reassured the audience that AI should be viewed as a tool to enhance human potential, not replace it. They encouraged Africans to embrace AI, upskill, and see it as an opportunity for collaboration, rather than competition.

Cybercrime and Building Collaboration

Another key discussion surrounded the rise of internet fraud among young people in Nigeria. Several attendees raised concerns about how easily young Nigerians can fall into fraudulent activities due to limited job opportunities and lack of awareness.

The panel addressed these concerns, emphasizing the role of government and regulatory bodies in curbing internet fraud. They discussed the importance of education, regulation, and the implementation of strict penalties for cybercriminals, highlighting that a collective effort from both the public and private sectors is needed to protect the next generation.

The speakers also highlighted international conferences, such as the European Cybersecurity Forum (CYBERSEC) and the RSA Conference, as vital spaces for global cybersecurity discussions. These events allow leaders from all over the world to share best practices and solutions, something Africa must actively engage with as it builds its cybersecurity framework.

Africa’s Digital Evolution

As one of the fastest growing fintechs in Africa and the largest stablecoins on/off ramp on the continent, Yellow Card is committed to Africa’s digital transformation. Beyond offering secure and efficient financial solutions, the company is passionate about educating and connecting businesses across Africa to the tools they need to thrive in a digital-first economy. Their presence at the event showcased their belief in the power of collaboration, technology, and strong cybersecurity policies to drive sustainable growth across the continent.

Looking Ahead…

As Africa continues to embrace digital transformation, strengthening cybersecurity and integrating technologies like AI will be key to building a secure, inclusive digital economy.

Paolo Abamwa is the Senior Marketing Manager at Yellow Card.

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Cassava Technologies Gets $310m for Robust Growth After Business Restructuring

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By Dipo Olowookere

To support its business restructuring designed for robust growth, a notable technology company, Cassava Technologies, has secured funding worth $310 million.

Business Post reports that the company got $90 million in equity injection and a $220 million loan from Standard Bank of South Africa, Rand Merchant Bank, Nedbank of South Africa, and International Finance Corporation (IFC) to refinance its debt.

The aim of the company is to use the funds to strengthen its balance sheet, drive sustainable profitable growth, and cement its position as a global technology company of African heritage as it formalised its legal reorganization.

It was gathered that Cassava received a $90 million equity investment from the US International Development Finance Corporation (DFC), Finnish Fund for Industrial Cooperation (Finnfund), and Google LLC.

“We are excited to announce these significant achievements, which collectively strengthen our financial position and are a powerful testament to the vision of our founder and Group Chairman, Strive Masiyiwa, and the dedication and commitment of our teams across the Group,”

“The closing of this equity round, completion of our ZAR debt refinancing, and reorganization represent more than just capital – it’s a pivotal milestone that we expect to unlock immense value and catalyse the further expansion of our digital infrastructure and services to bridge the digital divide on the continent,” the chief executive of Cassava, Hardy Pemhiwa, said.

Cassava reorganised its business to create an integrated digital solutions platform, which provides Broadband Connectivity, Co-location (data centres), Cloud, Cybersecurity, Compute (AI), and Payment services across more than 30 markets in Africa, the Middle East, India, and Latin America.

With the addition of DFC, Google LLC, and Finnfund, Cassava’s impressive roster of shareholders includes Econet Group, British International Investment (BII), Public Investment Corporation (PIC), Royal Bafokeng Holdings (RBH), Africa-Export Import Bank (Afreximbank/FEDA), and Gateway Capital.

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