Nigeria’s telecommunications regulator, the Nigerian Communications Commission (NCC) is urging states and local governments nationwide to reduce taxes imposed on telecom companies, warning that excessive taxation could hinder industry growth.

Despite the Federal Government’s plan to increase revenue with a new five percent excise duty on telecommunication services, Executive Vice Chairman of the NCC, Aminu Maida, expressed concern over the already high taxation levels, ranging from 50 to 55 percent on telecom operators. He emphasized the difficulty of attracting foreign investments with such burdensome taxes, echoing President Bola Tinubu’s directive to the commission.

Maida announced plans for nationwide advocacy to persuade states and local governments to lower levies, particularly Right of Way charges and multiple taxes. He highlighted the potential long-term benefits for states, including job creation and the development of various sector value chains, if massive investments in the telecom industry are facilitated.

Additionally, Maida assured that the NCC is working to resolve disputes between major telecom companies like MTN Nigeria and Globacom Network, aiming to ensure a fair playing field for all stakeholders. He outlined a strategic vision with five pillars to drive the telecom industry’s growth and maintain its contribution to the country’s GDP.

The regulator has faced challenges in its efforts to address right of way taxes at the state level. While the Commission agreed with Nigeria’s 36 state governors, including the Federal Capital Territory, to harmonize around a fixed charge of N145 (<10 cents) per linear meter for fiber infrastructure, some states still charge rates as high as 62 times the mandated fixed price.

Lacking incentives to expand digital infrastructure, numerous operators sidestep various states and instead opt to invest in regions with higher commercial potential, potentially impacting broadband penetration in Nigeria.