Nigerian telcos blame taxes for slow development

Several Nigerian telecom operators warned they might have to increase telecoms service tariffs due to operational expenses caused by multiple taxation. They said multiple taxation was responsible for slow networks and hindered infrastructure roll-out.

Several telecom operators have complained about taxation to the Nigerian Communications Commission. (image: file)

They made these complaints during the first interactive forum of the Industry Working Group on Multiple taxation set up by the Nigerian Communications Commission (NCC) earlier last week.

Group Vice-Chairman Oyeronke Oyetunde, said multiple taxation has impeded telecoms growth in the recent past, delaying infrastructure roll-out. She said this was also responsible for operators’ only building 20 000 base stations while the country needs 70 000.

Oyetunde said, “If you have a local government demanding N10m ($63 500) from an operator and you now multiply that by the number of local government areas we have in the country, you will see that this is unsustainable in the long run for the operators. It is either you kick them out of business or the operators are forced to pass the cost incurred by them to their customers in form of higher tariffs”.

Segun Adekoye