RateCaptain
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
Subscribe
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
No Result
View All Result
RateCaptain
No Result
View All Result
Home Economy

Surge in Taxes Threatens Nigeria’s Broadband Expansion Efforts

Stephen Akudike by Stephen Akudike
September 3, 2024
in Economy, telecommunication
Reading Time: 2 mins read
A A
0
Senate Committee Frowns at N17 Trillion Loss from Tax Waivers, Urges FIRS Reform
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

The Nigerian telecommunications industry is grappling with an unprecedented tax burden, which has raised concerns about the future of high-speed internet expansion in the country. In the first half of 2024 alone, MTN Nigeria, Nigeria’s largest mobile network provider, paid an astounding ₦232 billion in taxes. This figure represents a staggering 586% increase compared to the same period last year.

The tax obligations faced by MTN Nigeria included 54 separate taxes imposed by various federal, state, and local government agencies. The Association of Licensed Telecommunication Operators of Nigeria (ALTON) reports that most of these taxes are levied by state governments. They encompass a wide array of charges, including building permits, sewage fees, and storage licenses.

AlsoRead

Nigeria’s External Reserves Drop by $731 Million in Early April

FG Releases Revised Import Prohibition List, Bans Paracetamol, Tomato Paste and others.

Nigeria’s Bond Yields Rise Slightly as DMO Prepares N700 Billion Auction

Gbenga Adebayo, President of ALTON, highlighted that these tax increases have led to a 50% rise in operational costs for telecommunications companies in 2024. He pointed out that while some taxes are legally mandated, others are arbitrarily imposed. For example, the newly established National Association of Telecom Landlords in Bayelsa has introduced levies that lack legal backing.

“The multiple taxes are primarily driven by revenue needs,” Adebayo explained. “There is a perception that the telecoms sector is highly lucrative and therefore can be exploited for revenue.”

The surging tax environment poses a serious threat to Nigeria’s efforts to expand broadband infrastructure, which is essential for integrating millions of Nigerians into the digital economy. According to the Nigerian Communications Commission (NCC), as of December 2023, 27.91 million individuals across 97 communities still lack reliable high-speed internet, with states like Niger experiencing a complete absence of such services.

Compounding the issue is the inconsistency in right-of-way (RoW) fees for laying fiber optic cables. Federal agencies charge ₦145 for fiber installation on highways, while the Nigerian Inland Waterways Agency imposes ₦2,500 per linear square meter for fiber laying along waterways and bridges. State fees vary significantly, from as low as ₦1 per kilometer in Kwara to as high as ₦9,000 in Oyo State.

Some states, including Osun, Lagos, Cross River, and Abuja, have invested in fiber ducts to protect cables and lease these to operators. However, the dual charges for leasing ducts and right-of-way make this arrangement costly. Telecom operators such as MTN, Airtel, and Globacom continue to face high expenses despite using these ducts.

Manish Kochhar, former Chief Technology Officer at Globacom, criticized the states for their tax practices. “States often impose high charges and fail to protect the infrastructure from damage caused by construction projects, leading to degraded cable quality and poor connectivity.”

The Presidential Fiscal Policy and Tax Reforms Committee, which was established in 2023, promised to review and harmonize telecom taxes. However, there has been no recent update on their progress concerning these tax issues. Taiwo Oyedele, Chairman of the committee, did not respond to requests for comment.

In response to the mounting tax pressures, some telecom operators have begun negotiating directly with state governments. For instance, Lagos State granted MTN Nigeria a right-of-way waiver in exchange for providing free high-speed internet to public institutions. Edo State has also offered waivers and tax incentives to operators willing to engage with it.

During a recent stakeholder meeting organized by the Association of Telecommunication Operators of Nigeria (ATCON), state ICT commissioners from Niger, Kogi, and Cross River urged telecom operators to engage more actively with state authorities to address these issues.

As Nigeria continues its push to improve digital connectivity, the resolution of these tax-related challenges will be crucial in ensuring the successful expansion of broadband infrastructure across the country.

Tags: Broadband ExpansionMTNTaxesTelecommunications
Previous Post

Top Nigerian Banks Report Remarkable Profit Surge in First Half of 2024

Next Post

Naira Depreciates to N1,635 in Parallel Market

Related News

CBN Supplies $29.5 Million at FX Auction as Naira Depreciates at I&E Window.

Nigeria’s External Reserves Drop by $731 Million in Early April

by Jide Omodele
April 28, 2026
0

Nigeria’s foreign exchange reserves came under renewed pressure in April 2026, declining by approximately $731 million within the first three...

The Double-Edged Sword of VAT in Nigeria: Exploitation or Economic Lifeline?

FG Releases Revised Import Prohibition List, Bans Paracetamol, Tomato Paste and others.

by Victoria Attah
April 28, 2026
0

The Federal Government has released a revised schedule of prohibited trade items as part of efforts to deepen economic reforms,...

DMO Announces Subscription Offering for Federal Government Savings Bonds.

Nigeria’s Bond Yields Rise Slightly as DMO Prepares N700 Billion Auction

by Jide Omodele
April 28, 2026
0

Nigeria’s sovereign bond market ended the week on a cautious note, with average yields edging higher as investors adopted a...

Federal Government to Generate N12bn Annually from new vehicle tax.

Nigeria Revenue Service Denies Introduction of New Vehicle Tax

by Victoria Attah
April 27, 2026
0

The Nigeria Revenue Service (NRS) has firmly debunked a viral infographic claiming that the Federal Government has introduced a new...

Next Post
Battered Commodity Currencies Gain Attention Amid Dollar’s Decline.

Naira Depreciates to N1,635 in Parallel Market

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

IMF Cautions Central African Republic against Adopting Bitcoin

Bitcoin Tests $80,000 Resistance as It Remains Range-Bound Ahead of FOMC Decision

April 29, 2026
Naira appreciated to N738/$ in the Parallel Market

Naira Weakness Pushes Foreign Currency Taxes to N6.33 Trillion in 2025

April 29, 2026

Popular Story

  • IMF advised CBN to extend the banknote swap deadline.

    IMF Identifies High Inflation as a Major Hardship for Nigerians

    0 shares
    Share 0 Tweet 0
  • Chinese smartphone firms jazz up products, seize turf in home market from Apple

    0 shares
    Share 0 Tweet 0
  • India to propose cryptocurrency ban

    0 shares
    Share 0 Tweet 0
  • Passport Issuance Impede Can Deteriorate Economic Growth- 2023 Presidential Candidate

    0 shares
    Share 0 Tweet 0
  • Zenith Bank grows gross earnings by 24% to N946 billion.

    0 shares
    Share 0 Tweet 0

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
  • Cookie Policy
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • Home
    • About Us
    • Contact Us
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

RateCaptain
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
  • Manage options
  • Manage services
  • Manage {vendor_count} vendors
  • Read more about these purposes
View preferences
  • {title}
  • {title}
  • {title}
?>