Telecommunications sector needs fresh $30 billion investments to bridge access gaps

Nigeria’s telecommunications sector urgently requires an additional $30 billion investments to bridge the current access gaps and other challenges in the sector.

Its current investment is estimated at over $70 billion, but that figure has stagnated for over four years now.

But the new investments of $30 billion, if realised, is expected to help the country take telephony services to the underserved and un-served areas.

Reports had confirmed that the country currently has 195 access gaps, where about 40 million Nigerians have not experienced any information and communications technology services.

Expectedly, the fresh investment would propel Nigeria’s readiness for the Fourth Industrial Revolution and help improve service quality in the sector.

However, the required investment may not come because of multiple taxation and harsh business environment in the country.

Speaking on Implication of Multiple Taxation on Investments in the Nigerian Telecom Industry at the Nigerian Communications Commission (NCC) organised Telecom Leadership Summit in Lagos yesterday, an Associate Professor, Lagos Business School, Dr. Doyin Salami, said multiple taxation has ravaged all sectors of the economy, particularly the telecom sector.

Salami noted that investigations revealed the sector has been phenomenal, as it became the fourth largest sector of the economy in 2018.

He explained that the additional $30 billion investment was needed to bridge access gaps in the country, saying Nigeria must resolve the issue of multiple taxation urgently if investors must come into the sector.

“Fresh investments are needed to upgrade the prevalent 2G and 3G infrastructure because the future of telecoms is about co-creation. The Federal Government must find a lasting solution to the problems of multiple taxes.

“The $30 billion can only come from private capital and not debt, but investors are scared of the economy due to increasing multiple taxation and insecurity,” he stated.

Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, who supported Salami’s argument, said telecoms operators were confronted with 39 different taxes, adding that this has become a hindrance to further expansion of services in the country.

Adebayo challenged NCC to be more proactive and engaging, if multiple taxation must be overcome, saying Nigeria indeed needed more investments, “but multiple taxation has killed and is killing more businesses in the country.”

Responding, Chief Executive Officer, MainOne Cables, Funke Opeke, said the last time a major investment came into the telecoms sector was in 2010, insisting that investors were dying under multiple taxation, which are mostly imposed on operators by states and their agents.

She urged NCC to come up with new approach in meeting with states government on the dangers multiple taxes and over regulations have brought on the sector.

Former Minister of Communications Technology, Dr. Omobola Johnson, who spoke on Challenges Facing the Nigerian Telecoms Industry, Way Forward and Role of the Regulator, also charged NCC to be more aggressive in tackling the sector’s increasing challenges.

Special Guest of Honour, Vice President Yemi Osinbajo, assured that the next level agenda would focus on making the business environment more friendly.

Executive Vice Chairman of NCC, Professor Umaru Danbatta, assured that the Commission would do everything possible to move the sector forward.