In a bid to foster growth in Nigeria’s telecommunications sector, the Nigerian Communications Commission (NCC) has made a fervent plea to states and local governments across the nation to slash taxes imposed on telecom companies.
The call comes amidst concerns over the detrimental effects excessive taxation could have on industry expansion and foreign investment.
Expressing his concerns, Aminu Wada Maida, the Executive Vice Chairman of the NCC, highlighted the burden imposed by current tax rates, which hover between 50 to 55 percent. Maida emphasized that such high taxation levels could deter foreign investors, thereby stunting the sector’s potential growth.
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During an interactive session with journalists in Abuja, Maida stated, “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.”
He further underscored the long-term benefits that would accrue to states if they facilitated substantial investments in the telecom sector, including job creation and the development of ancillary industries.
Addressing ongoing disputes between telecom giants, MTN Nigeria and Globacom Network, Maida assured stakeholders that the NCC was committed to fostering a level-playing field for all operators, prioritizing fair competition and consumer welfare.
Moreover, the NCC unveiled a strategic vision centered around five pillars aimed at propelling the telecom industry’s growth and bolstering its contribution to Nigeria’s Gross Domestic Product (GDP).
Acknowledging challenges related to service quality, Maida emphasized the NCC’s commitment to enhancing the overall consumer experience. He urged consumers to consider factors such as handset quality and service offerings when assessing data consumption concerns, advocating for a holistic approach to addressing consumer expectations.
“Our approach will thus be to walk towards the expectations of these stakeholders, and everything for me starts with the consumer and the expectation of the consumer is very simple – quality of service,” remarked Maida.
As Nigeria strives to position itself as a telecommunications hub, the NCC’s appeal for reduced taxes reflects a strategic effort to stimulate investment, foster innovation, and enhance service delivery in the sector.