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Home Economy

Telecom tax harmonisation urged as multiple levies hurt growth

Quadri Olaitan by Quadri Olaitan
July 31, 2025
in Economy
0
telecom tax harmonisation

Telecom tax harmonisation is urgently needed, says NCC, as over 50 levies and inconsistent laws threaten investment and digital growth in Nigeria

Telecom tax harmonisation is urgently needed to address the heavy and inconsistent levies choking Nigeria’s communications sector, the Nigerian Communications Commission (NCC) warned on Wednesday.

Also read: NCC unveils telecom reform blueprint in 2024 RIA report

Speaking at the first Annual Workshop for Attorneys-General in Lagos, NCC Executive Vice Chairman Dr. Aminu Maida called for unified fiscal reform, citing how the fragmented tax regime deters investment and undermines infrastructure expansion.

Despite contributing over ₦2.4 trillion in taxes in 2023 and more than 10% of total tax revenue in Q1 alone telecom operators face over 50 separate levies from federal, state, and local authorities.

MTN Nigeria alone paid ₦764.2bn in 2024, up 40.5% from the previous year.

Maida emphasized that this excessive burden, alongside issues like vandalism and regulatory overlaps, is a major disincentive to broadband expansion in underserved regions.

Attorney-General Lateef Fagbemi echoed the concerns, labeling uncoordinated levies and infrastructure sabotage as economic sabotage. He called for unified right-of-way policies, legal reforms, and digital tax consolidation.

He cited past incidents, including the 2024 suspension of MTN projects in Ogun due to conflicting taxes and 2023 base station vandalism in Kano, as signs that urgent regulatory coordination is necessary.

The NCC plans to issue a communiqué at the end of the workshop, outlining a strategy for harmonised regulations to attract investment and fast-track Nigeria’s digital transformation.

Also read: NCC mandates telecoms to compensate subscribers for extended outages

Both agencies stressed that telecom tax harmonisation is not only essential for investor confidence but also for achieving the country’s broadband and digital inclusion goals.

Quadri Olaitan
Quadri Olaitan

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