.seeks balance between revenue generation and industry growth

The Executive Vice Chairman of the Nigerian Communications Commission, Prof. Umar Danbatta, has advocated for fair taxation that would not stifle innovation or place undue burden on telecoms consumers.

Speaking at the NCC Special Day at the ongoing 18th edition of Abuja International Trade Fair with the theme, ‘Sustainable Financing and Taxation’, Danbatta argued that while taxation is essential for funding of government’s initiatives, there was a need to strike a delicate balance between revenue generation and industry growth.

Danbatta noted that the telecommunications industry play an important role in driving economic growth, fostering innovation and enhancing the quality of life of citizens across the globe, adding that the commission as the sector’s regulator bears the responsibility of ensuring its sustainability and vitality

He said: “We acknowledge the intricacies of tax policies but emphasise the importance of creating an environment where telecommunications companies can thrive.”

To address these challenges, the commission continuously engages both the federal and state governments on the need to harmonise taxation in the telecommunications sector. The commission recognises the fact that the telecommunications sector has been a strategic driver of the digital economy agenda of the Federal Government, as it continues to provide the needed digital stamina to support the economy, especially through technology.”

Danbatta stated that the number of active mobile subscriptions in the country reached 220,715,961 million as at August 2023, while Teledensity stood at 115.63 per cent at the same period.

He observed that the number of active Internet subscribers was 159,034,717 million with broadband penetration at 45.57 per cent as at August 2023.

According to him, the competitiveness of Nigerian businesses depends on their ability to leverage on new technologies by acquiring the necessary digital skills to do business on an international scale.

“The steady growth of the telecoms sector over the years with its pervasive positive impact on all other sectors of the economy in terms of increased automation of processes and digital transformation in service delivery has been remarkable and this, however, would not have been possible without you, telecoms consumers who are using the services daily,” he added.

Danbatta stressed that NCC was driving the deployment of Fifth Generation (5G) network in Nigeria, saying 5G spectrum licenses had already been issued to companies for rollout.

He also added that the 5G network would bring substantial network improvements, including higher connection speed, mobility and capacity, as well as low-latency capabilities to communications services in Nigeria.

Earlier, the Director, Consumer Affairs Bureau in the Commission, Mallam Alkasim Umar, said the theme of the event was timely and relevant as the country navigates the challenges of sustaining its economy and ensuring a conducive business environment.

Umar, who was represented by the Head, Consumer Policy Development and Monitoring at NCC, Mr. Ayanbanji Ojo, however pointed out that as the industry continues to grow and evolve, it was essential to address the issue of sustainable financing and taxation to ensure its long term viability.