Telecom services

By Muhammad Abubakar

The Federal Government has removed the 5% excise duty on telecommunications services in Nigeria.

The tax, introduced under the administration of former President Muhammadu Buhari, was to be applied on both voice and data services. It drew strong opposition from telecom operators and consumer groups.

Executive Vice Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, said President Bola Ahmed Tinubu ordered its removal during discussions on the recently passed Finance Act.

The decision is expected to provide relief to over 171 million active telecom subscribers, who have also faced a 50 per cent tariff increase earlier this year.

By Abdullahi Adamu

Whenever the Nigerian Electricity Regulatory Commission (NERC) announces an electricity tariff increase, Nigerians brace for even worse power supply. Due to incessant national grid collapses and inadequate transmission by the Transmission Company of Nigeria (TCN), poor generation continues to plague the sector, yet tariffs keep rising.

Now, the Nigerian Communications Commission (NCC) is following the same path, approving telecom companies’ hikes in call and data service prices. Meanwhile, Nigerians suffer from poor network quality and unreliable internet services.

It seems these regulatory agencies have forgotten that their primary mandate is to protect consumers and ensure efficient service delivery, not just to rubber-stamp tariff increases for the companies they regulate. When will they start holding these service providers accountable instead of burdening citizens with higher costs for declining service quality?

The recent price hike by telecom companies in Nigeria has affected subscribers’ wallets and seems to have impacted the quality of network services.

It’s frustrating when you pay more for a service, but the quality doesn’t meet expectations. Poor network provision and services can affect productivity, communication, and daily life.

Despite the widespread complaints from Nigerians, it’s disappointing that the services provided by telecom companies have not significantly improved.

The regulators’ lack of response, such as the Nigerian Communications Commission (NCC), is also concerning. It’s their responsibility to ensure that telecom companies provide quality services and protect consumers’ interests.

It’s time for Nigerians to continue to speak out and demand better services. 

Remember, collective action can lead to positive change.

Abdullahi Adamu wrote via nasabooyoyo@gmail.com.

By Uzair Adam Imam

The Minister of Communication and Digital Economy, Isa Ali Pantami, has announced the suspension of proposed excise duty on telecommunication services.

The minister stated this at inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector.

Pantami, in a program Monday in Abuja, described the tax as overburden for the telecommunications sector.

He added that he personally rejected the policy and advised President Buhari to reject it for the effects it would have on digital economy.

Pantami, who kicked against the policy, said the National Assembly members were not even consulted.

He added, “The introduction of excise duty in the telecommunication and information and communications technology industry would jeopardise the successes already recorded within the industry.”

Pantami sabotages government efforts – Ahmed

The Minister of Finance Budget and National Planning, Zainab Ahmed, had accused pantami of sabotaging government efforts.

She said, “Against the comments by Isa Ali Pantami, honourable minister of communication and digital economy, concerning the five percent excise duty hike on telecoms services, it is worth noting that there was a circular stating the planned hike which was addressed to the communication minister and other relevant ministries and agencies of government.

“The circular Referenced No. F. 17417/VI/286, dated 1st March 2022, and titled “Approval for Implementation of the 2022 Fiscal Policy Measures and Tariff Amendments” was addressed to different ministers, including the honourable minister, communications and digital economy and and other heads of government agencies.

“In view of the above position of Prof. Pantami, there could be the question of whether he was absent in the whole process that resulted in the Finance Act, which is a product of both the National Assembly and Federal Executive Council (FEC),” the statement reads in part.