Multiple taxation could cripple Nigerian telecoms sector

The telecommunications sector in Nigeria is under threat from multiple taxation, causing fears that investors might divest from the industry.

“If you have a local government demanding N10m from an operator and you now multiply that by the number of Local Government Areas we have in the country, you would see that this is unsustainable in the long run for the operators,” said Vice Chairman of the Industry Working Group (IWG), Oyeronke Oyetunde.

Chairman of the IWG and Executive Commissioner, Stakeholders Management at NCC, Okey Itanyi, added that it would be to the detriment of the country if states and their local governments imposed proposed taxes exceeding N10 billion annually. “The country may lose the gains and confidence achieved so far in the last couple of years.”

There are also fears that subscribers will bear the brunt of these levies.

“And more recently, the charges in form of multiple taxations and illegal demand of some frivolous levies, have run into millions of naira. This is unfavourable as operators may have to pass this cost to subscribers,” added National Association of  Telecoms Subscribers President, Chief Deolu Ogunbajo.

Tobe Okigbo, a representative of the Association of Licenced Telecommunication Operators of Nigeria (ALTON), echoed the same sentiments. “The operators may not have other choices than to push additional cost incurred to their subscribers rather than allow a telecom firm to totally shut down.”

Staff Writer