Seeks NASS support to address multiple taxation

The newly elected Executive of the Association Of Telecommunications Companies Of Nigeria(ATCON), has urged the National Assembly to support the provision of low-cost Intervention funds for the rapid deployment of Broadband Infrastructure in rural areas across the country .

The body also requested for a special funding concessions for the telecommunications industry similar to those provided to the manufacturing sector, and the development of a special infrastructure funding scheme for operators in concert with Infrastructure Corporation of Nigeria.

ATCON President, Mr Tony Emoekpere, who made the appeal when the association paid a courtesy visit to the Committee on Telecommunication, Federal House of Representatives, yesterday in Abuja, lamented that the Nigeria Telecom Industry is often faced with multiple regulations that usually lead to multiple taxation.

He also proposed a special and called for establishment of an infrastructure funding vehicle that will be driven by the CBN in order to harness opportunity for Nigeria’s telecoms infrastructure development.

He stated that ATCON members presently pay taxes to Federal Government Agencies, State Government Agencies and Local Government, adding that these taxes impact their members negatively because money earmarked for network expansion must be redirected to pay illegal taxes.

He noted that the cost of doing business in Nigeria has risen sharply in the preceding months due to a myriad of factors generally impacting businesses including macroeconomic headwinds such as inflation, currency devaluation, and subsidy removal; sustained difficulty in accessing FOREX at an affordable rate; the rising cost of securing telecommunications facilities and field personnel in the face of worsening insecurity.

“It should be noted that our members are still operating the old tariffs regime”, he said.
Emoekpere appealed to the committee to drive strategic engagement with the Central Bank of Nigeria (CBN) on behalf of the telecom sector to bridge the infrastructure funding gap

He urged the lawmakers to create an enabling operating environment for members as well as grow and develop the telecoms and ICT industry in Nigeria.

Emoekpere recommended an alternative model practiced by the Nigerian Local Content Management Board for the Local Content Fund in the Oil and Gas Sector which is Insurance Bank Guarantee or equity Participation.

He stated that the Loans are single digit Loans and they have made very significant progress concerning the participation of Nigerians in the Oil and Gas sector in Nigeria.

“It will be a welcome development if telecom infrastructure is legislated as critical National Infrastructure. This is important because telecom infrastructure is central to the country’s socio-economic progress. We seek this committee’s legislative intervention in passing this bill into law.

“Telecom infrastructure has suffered undue harassment from State and Local Government Regulatory Agencies.

“Right of Way charges are still very high in different States including Lagos State and the FCT. The 70 per cent broadband penetration target of the National Broadband Plan cannot be achieved with high ROW charges. We advocate for a uniform N145 per meter or a Waiver (as some States have done) Nationwide including the FCT.”

Responding , the Chairman, committee on Telecommunication, Hon Peter Ohiozojeh Akpatason, informed that there has been series of complain by Nigerians on drop calls and data theft. He pointed out the need for them to diversify services investment in rural area and to upgrade their infrastructures, invest in the new technology to stay competitive and offer a better service.

Akpatason informed that there is an already existing laws that protect the telecommunication industries and they will be willing to draft more if that is their wish. He agreed that businesses are suffering but strongly believed that President Tinubu’s administration will look into the issue of multiple taxation.

He said that the appreciated the role ATCON played in the success of the fight against Boko Haram, adding that they have taken note of all the complains they brought to them and will set up a committee that will comprise their member and some members of ATCON. The committee would be chaired by the Vice-chairman, committee on Telecommunication, Dr Midala Usman Balami.
“Collectively we share the pain and collectively we will share the gain”, he concluded.