The Nigerian Communications Commission (NCC) has announced plans to engage with state and local governments to eliminate Right of Way (ROW) charges and mitigate multiple taxation issues, which pose threats to telecommunications operations and investments nationwide.
Aminu Wada Maida, the NCC’s Executive Vice Chairman (EVC), made this declaration on Tuesday during a media briefing with members of the Abuja chapter of the Nigerian Telecommunication Reporters Association (NITRA).
Maida expressed concern over the substantial taxes imposed on telecom operators, hindering the attraction of foreign investments into the sector as directed by President Bola Tinubu.
“We are embarking on an advocacy campaign to persuade states to remove obstacles such as Right of Way fees and multiple taxation, which can reach up to 55 per cent in certain areas of the country. This taxation scenario does not bode well for attracting foreign investments,” Maida stated.
He urged states to consider the long-term advantages of allowing significant investments in the sector, highlighting the potential creation of job opportunities and other value chains.
Furthermore, Maida disclosed the amicable resolution of the dispute between telecom giants MTN Nigeria and Globacom Network, with a forthcoming press statement to formally address the resolution.
Emphasising the Commission’s commitment to fostering a level playing field for all stakeholders, he underscored the importance of collaboration to prevent such disputes in the future.
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The Commission has developed a strategic vision based on five pillars aimed at driving the telecom industry’s growth and ensuring its continued contribution to the country’s Gross Domestic Product (GDP).
Additionally, the NCC EVC addressed concerns regarding the quality of services from Mobile Network Operators (MNOs) and Internet Service Providers (ISPs), affirming the Commission’s adoption of a “total consumer experience” approach to tackle existing challenges.
“We are going to be going on an advocacy campaign to see how we can convince the states to remove some of these obstacles like Right of Way and multiple taxations because I have seen some studies which indicate taxation is almost 50% getting to 55 per cent in some areas in this country.
“And you would agree with me that if we are trying to bring in foreign investment that is not a good picture to paint.”
He stressed the need for accountability among licensees and announced plans to collaborate closely with stakeholders to enhance service delivery standards. However, he also warned of enforcement actions if necessary to uphold consumer rights and standards.
“Last week, I spoke about compliance and enforcement, but we will also, first of all, be collaborators. We will place a very high premium on collaboration with all critical stakeholders, including yourselves to ensure that everybody is carried along in a cooperative process so that we can try to create win-win scenarios for everybody; but, of course, if that is not possible, all the licensees have an obligation, and we will not hesitate to enforce it for the clients.”
