NCC insist on harmonize taxation in telecom sector
The Nigeria Communications Commission (NCC), has insisted on fair taxation practices that do not stifle innovation or place undue burden on consumers; says it will continue to engage the government on the need to harmonize taxation in the telecommunications sector.
The Executive Vice Chairman, NCC, Prof Umar Danbatta, who disclosed this on Thursday, at the 18th Abuja International Trade Fair, said while taxation is essential to funding of government initiatives, it must strike a delicate balance between revenue generation and industry growth.
He said, NCC’s regulatory efforts in deepening access to digital services will benefit Nigeria and make it competitive comparable with other economies in the areas of job creation; contribution to Gross Domestic Product (GDP) growth; emergence of new services and industries; workforce transformation; and business innovation.
Prof Danbatta, who was represented by the Director of Consumer Affairs, Mr. Umar Alkasim, however, acknowledge the intricacies of tax policies but emphasize the importance of creating an environment where telecommunications companies can thrive.
He said, “Sustainable financing in telecommunication involves sourcing the necessary capital to build and maintain robust telecommunications networks. As regulators, we understand that this financing should be stable, accessible and conducive for industry growth. Taxation while essential for funding of Government initiatives must strike a delicate balance between revenue generation and industry growth.
In ensuring that Nigeria telecom sector is competitive, “the Commission continuously puts a number of regulatory measures in place to ensure seamless access by Nigerians to telecommunications services in order to deepen competitiveness of the Nigerian economy by making our businesses and industries digitally compliant.
According to him, “In Nigeria today, the number of active mobile subscriptions reached 220,715,961 million as at August 2023, while Teledensity stood at 115.63 per cent at the same period. Also, the number of active Internet subscribers was 159,034,717 Million with broadband penetration at 45.57 per cent as at August, 2023.
“In this new environment, the competitiveness of Nigerian businesses depends on their ability to leverage on new technologies by acquiring the necessary digital skills to do business on an international scale. This in turn benefits the economy financially.
He said, “Commission is working assiduously with various stakeholders including you, the consumers, to see how more businesses can embrace digital platforms for delivering their services to the consumer. As a regulator, we also ensure we constantly inform you, the consumers on how to be protected to prevent cases of online fraud or avoid consumer falling victims of cybercrime antics while in their legitimate use of the Internet.
“As you may be aware, the NCC is driving initiatives for the full deployment of Fifth Generation (5G) network in Nigeria. Already, 5G spectrum licenses have been issued to companies for rollout.
“It is important to state that the 5G network will bring substantial network improvements, including higher connection speed, mobility and capacity, as well as low-latency capabilities to communications services in Nigeria. I am happy to inform you that licensees have kicked off the commercial launch of 5G network in some cities across the nation.”
