One of the main challenges of the Nigerian telecoms sector is excessive taxation. Players in the sector are subject to around forty taxes at both the state and federal government levels.
Telecommunications companies are considering varying the prices of their services in Nigeria depending on the state. The measure aims to resolve the problems posed by multiple taxation and different business environments from one state to another. It is awaiting approval by the Nigerian Communications Commission (NCC).
This initiative by telecom operators comes a few weeks after the Oyo State government sealed towers of some telecom operators from land use taxes. In March 2022, Kogi State took a similar initiative against Globacom and Airtel Networks (Airtel Nigeria) in its territory for non-payment of tax obligations amounting to N360,035,000 ( approximately USD 451,000 at the current rate). Furthermore, Osun State recently commenced an audit of telecommunications facilities, hoping to rake in N500 million in revenue.
“ It may not be appropriate to continue to have a single national tariff, because if the cost of providing services in a region is high, the services in that region should reflect the cost of providing services. If a State has introduced 50 different operator taxes, telecommunications operators must pass these taxes on to their subscribers. Otherwise, we will stay on this issue for many years ,” said Gbenga Adebayo, president of the Association of Licensed Telecoms Operators of Nigeria.