In a bid to foster sustainable growth in Nigeria’s telecom industry, the Nigerian Communications Commission (NCC), as reported by Infostride News, has identified multiple taxation as a significant impediment. Adewolu Adeleke, the Executive Commissioner for Stakeholder Management at the NCC, discussed the challenges posed by multiple taxation and regulations during the Regional Stakeholders Workshop held in Kano, emphasizing the theme, “Navigating the Landscape of Multiple Taxation and Regulations, Fostering Sustainable Growth through Collaboration.”
Adeleke, represented by Efosa Idehen, the Director of Compliance, Monitoring, and Enforcement at the commission, underscored the adverse effects of multiple taxation on the growth of telecoms infrastructure, a vital component for the digital economy. He distinguished between legitimate taxes imposed through due processes and the irregular, duplicated, and hastily imposed taxes that some agencies pursue for short-term gains, neglecting their long-term impact on investor confidence, socio-economic well-being, and national economic growth.
One notable concern highlighted by Adeleke was the imposition of taxes and regulations by certain state and local government agencies without proper legal authorization. This unwarranted imposition creates a ripple effect, negatively impacting the telecommunications industry and its overall output. The absence of legal backing for these taxes raised questions about their legitimacy, prompting the need for a more structured and legally sound approach at the regional and local levels.
Adeleke further pointed out that taxes and regulations on infrastructure maintenance, environmental impact charges, waste collection charges, value-added tax, and sales tax collectively increase the cost of services for consumers. To address these issues, the Commissioner advocated for proactive measures, emphasizing the urgency of finding lasting solutions to the challenge of multiple taxation and regulations.
Acknowledging the importance of President Bola Tinubu’s establishment of the Presidential Tax Reform Committee, Adeleke revealed that the NCC has presented recommendations to the committee. He expressed confidence that the committee would make necessary recommendations to conclusively address the various dimensions of the problem, emphasizing the need for comprehensive tax reform to unlock the full potential of the Nigerian economy. Adeleke urged collaboration among government levels to create a harmonized tax structure that fosters economic growth.
In addition to addressing taxation challenges, the NCC Commissioner stressed the need for the speedy deployment of new infrastructure and the seamless operation of existing ones to achieve 90% broadband penetration by 2027. Adeleke highlighted alarming statistics, including over 35,000 fiber cuts in 2022 and more than 24,000 cuts in 2023, with over N14 billion spent on repairing damaged fiber. Moreover, denial of access cases reached over 18,000 in 2022 and exceeded 6,000 cases in 2023. These challenges, as Adeleke noted, discourage potential investors, making it imperative for stakeholders to collectively tackle these issues for the industry’s sustainable growth.
As Infostride News covers the developments, it becomes evident that addressing the complexities of multiple taxation and infrastructure challenges is crucial for Nigeria to realize the full potential of its telecommunications sector and drive overall economic advancement.
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