The Nigerian Communications Commission (NCC) yesterday raised the
alarm over recurring cases of multiple taxation in various states of the
federation. It stated that the development poses serious threat to the
expansion of telecommunications sector in the country.
The Executive Vice Chairman of the NCC, Professor Umar Danbatta, said
this in Abeokuta when he led the management team of the commission on a
courtesy visit to Ogun State Governor, Senator Ibikunle Amosun,
Danbatta said the intervention of state governors was urgently required
to address the challenges heavily stifling telecom companies in various
states. According to him, vandalism and pilfering of telecoms equipment
also negatively impact on the sector.
He, however, noted that despite the negative growth rate of the
nation’s economy, the telecoms sector contributed 8.83 per cent to the
Gross Domestic product (GDP) in the first quarter of 2016. Danbatta
said: “There have been recurring cases of multiple taxation which
threaten the operators and by extension telecommunications services.
There have also been issues of Right of Way (RoW) approvals to telecom
companies.
“Various tiers of government, including local council and state
government agencies have created enormous challenges to the sector and
some of these agencies often threaten to shut down Base Transceivers
Stations (BTSs) over alleged refusal of the telecoms companies (Telcos)
to comply with a tax regime which the operators see as grossly excessive
and at times inappropriate.
“The operators are in a dilemma and because of this, expansion of the
networks is heavily stifled. There is also the challenge of vandalism
and pilfering of telecoms equipment.” He recalled that the immediate
past administration signed a Memorandum of Understanding (MoU) with the
Nigerian Governors’ Forum (NGF) on the issues threatening the sector,
but regretted that the provisions of the MoU have not been adhered to.
The NCC boss said the issues needed pragmatic approach for the common
good of nation building, adding that the commission would continue to
manage the telecoms sector in a transparent manner. Speaking on the
commission’s eight-point agenda, Danbatta stated that the broadband
penetration of the country will rise from its present 10 per cent to 30
per cent by the year 2018.
“We have made steady progress with the licensing of companies through
the 2.3GHz spectrum band won by Bitflux Consortium. Only recently, we
concluded auction for the 2.6GHz broadband spectrum and the licences
will be issued in due course,” he added.
In his remarks, Amosun said the state government would look into the
issues raised by the NCC. The governor noted that the telecommunications
sector had, indeed, contributed to the current huge economic base of
the country. He said the sector had also helped in reducing the security
challenges facing the nation and ensured gainful employment for teeming
unemployed youths
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