ABEOKUTA (Sundiata Post) – The Nigerian Communications Commission (NCC) has urged state governors to adhere to the agreements signed in 2013 regarding multiple taxation and write of way for telecommunication companies.
Executive Chairman of the NCC, Prof. Umar Danbatta, who made this call, raised concerns recurring cases of multiple taxation and issues surrounding approvals of write of way to telecommunication companies by some state governments were threatening the expansion of the telcos and their services.
Recall that 47 base stations were shut down in Ogun State barely two months ago over alleged tax default by the operators.
Danbatta, who was on a courtesy visit to the Ogun State Governor, Senator Ibikunle Amosun, urged the governor to enlist his colleagues’ supports to ensure adherence to the provisions of National Executive Council NEC’s resolution, which takes care of the concerns of multiple taxations and Right of Way, among others.
“Indeed, Your Excellency, the resolution of the NEC of March 21, 2013 properly addressed the problems of multiple taxation, levies and charges on ICT infrastructure with a view to providing a lasting solution. Incidentally, these resolutions are largely honored more in the breach than in their observance hence the precarious situation has not changed,” he explained, Danbatta said.
He noted that governments at various levels, including Local Council and State Government Agencies have created enormous challenges to the sector and some of these agencies often threaten to shut down Base Transceivers Stations (BTSs) over alleged refusal ofthe Telecoms companies (Telcos) to comply with a taxr egime which the operators see as grossly excessive and at times inappropriate.
‘The operators are in a dilemma and because of this, expansion of the networks is heavily stifled. There is also the challenge of vandalism and pilfering of telecoms equipment.
“We therefore seize this opportunity to appeal to you to kindly prevail on your colleagues to show some understanding and help this sector to grow and impact on the socio-economic development of our nation.
Highlighting some key achievements of the NCC, Danbatta noted that the sector has grown immensely as current statistics indicate a mobile teledensity in excess of 107 per cent and about 150 million active subscribers on the various mobile networks operated in the country.
He anticipated that broadband penetration currently at 10 per cent, will rise to 30% by the year 2018.
“We have made steady progress with the licensing of companies through the 2.3GHz spectrum band won by Bitflux Consortium. The consortium has begun to offer broadband services. The Commission has also offered licences to two Infrastructure Companies (Infracos) for Lagos and North Central zones respectively and we have five more licences in this category to cover the South West, South East, South South, North East andNorth West zones, he said.