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Telecoms Sector’s Hidden Struggle: Despite N2.4tn Tax Contribution, Investments Plummet
Telecoms Sector’s Hidden Struggle: Despite N2.4tn Tax Contribution, Investments Plummet....KINDLY READ THE FULL STORY HERE▶
Telecommunication companies in Nigeria contributed a staggering N2.4tn in taxes to the government in 2023, according to a recent digital economy report from the Groupe Special Mobile Association (GSMA) obtained by Sunday PUNCH. This hefty tax contribution comes despite the sector’s struggle to attract new investments……..CONTINUE READING
The GSMA report highlighted the telecommunications sector’s vital role in the Nigerian economy, accounting for about N33tn, or 13.5 percent of the country’s GDP. The report emphasized the sector’s potential for significant growth in the next 3–5 years.
“The mobile telecoms sector accounted for 13.5 percent of total GDP in 2023, including the direct value added by wider ICT industries and the impact of the sector in enhancing the productivity of other sectors,” the report noted. It further detailed the mobile sector’s overall contribution to GDP, estimated at N33tn in 2023, with tax revenue contributions of N2.4tn.
Data from the National Bureau of Statistics (NBS) revealed that in the first quarter of 2023 alone, telcos paid N119.87bn in taxes, a 35.91 percent increase from the N88.19bn paid in the same period in 2022. This tax revenue included both Company Income Tax (CIT) and value-added tax (VAT), with operators paying N35.75bn as CIT and consumers contributing N84.12bn as VAT.
The NBS also highlighted that the information and communications sector was a top contributor to CIT during this period, with the total tax revenue for Q1 2023 standing at N1.18tn, and the sector contributing 10.17 percent to this total.
However, the industry faces significant challenges. Rising inflation, energy costs, and exchange rate volatility have severely impacted telcos. Last year saw a dramatic 70.5 percent decline in sector investments, dropping to $134m from $456.8m in 2022, as reported by the NBS.
Major players like Airtel and MTN Nigeria have reported substantial losses. Airtel declared a $151m loss in the first quarter of 2024, while MTN Nigeria reported a loss of N137bn for the year ended 2023.
Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), warned that operators might not survive the year-end if economic hardships continue. “Telcos have been running at a loss, even though they may be reluctant to disclose,” he stated in April.
Recently, telcos have petitioned the Federal Government to allow tariff increases, a move not seen in the past 11 years. Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), pointed out that the sector is no longer attracting investments due to economic challenges.
Bismarck Rewane, CEO of Financial Derivatives Company Limited, supported the telcos’ call for a tariff review, noting that inflation has surged multiple times since the last review in 2013.
As the industry navigates these turbulent times, the hefty tax contributions underscore the sector’s significant economic impact and the urgent need for strategic interventions to sustain growth and attract investments.
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Akpabio Camp Row Deepens As APC Chieftain Rejects Suspension Report.
A chieftain of the All Progressives Congress (APC) in Akwa Ibom State, Chief Edet Ben, has denied involvement in the alleged suspension of Mr. Eseme Eyiboh, Special Adviser to the Senate President on Media and Publicity, from the party in Ward 9, Esit Eket Local Government Area.....KINDLY READ THE FULL STORY HERE▶
Ben, who serves as an Ex-Officio member of the party in Ward 9, threatened legal action against those behind what he described as the forgery of his name and signature on documents claiming Eyiboh’s suspension.
In a sworn court affidavit, Ben described the purported suspension process as fraudulent and non-existent.
He stated that no meeting was held on April 22 to discuss or approve any disciplinary measures against Eyiboh or any other party member, adding that he neither attended nor endorsed such proceedings.
Ben also alleged that his name and signature were falsely inserted into an attendance list linked to the alleged suspension exercise.
He subsequently disowned both the attendance document and the suspension letter reportedly sent to APC leadership at the chapter and state levels.
In his notice, Ben demanded the immediate removal of his name from the documents, a public retraction, and an end to any unauthorised use of his identity.
He warned that failure to comply within 24 hours would result in legal action.
The controversy follows an announcement by a faction within the ward claiming Eyiboh had been suspended over alleged anti-party activities.
Meanwhile, a grassroots political group, Ward Nine New Era (WNNE), has strongly condemned the move, describing it as malicious, baseless, and invalid.
The group argued that the action appeared targeted at a key political figure who had recently mobilised grassroots support for major APC leaders, including President Bola Tinubu, Senate President Godswill Akpabio, and Governor Umo Eno.
WNNE also questioned the legitimacy of the ward executives behind the move and insisted that due process was not followed.
The group urged party members and the public to disregard the suspension, maintaining that it lacked credibility and legal standing.
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2027: Association Throws Weight Behind Tinubu’s Re-election Bid.
Members of the Integrated Association of Consolidated Wood, Planks and Material Sellers have embarked on a solidarity walk in support of President Bola Ahmed Tinubu’s re-election bid.....KINDLY READ THE FULL STORY HERE▶
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FUTO VC Commends Tinubu, Uzodimma For Driving Education Reforms
The newly appointed Vice Chancellor of the Federal University of Technology, Owerri (FUTO), Prof. Ikechukwu Nosike Dozie, has praised President Bola Ahmed Tinubu and Imo State Governor Hope Uzodimma for what he described as ongoing transformation in Nigeria’s education sector.....KINDLY READ THE FULL STORY HERE▶
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