The Threat of a potential Telecommunications Network blackout looms in parts of Nigeria as some State Governments have either Sealed or Threatened to shut down Base Station Transmission (BTS) sites due to unpaid Taxes by Telecom Operators.
The Operators have been unsuccessful in persuading State Governments to refrain from Imposing additional Taxes and Levies on their Operations.
These Taxes and Levies have Increased the Cost of doing Business for Telecom Operators, Indirectly affecting the quality of Service and possibly leading to higher voice and Data Service Costs for Subscribers.
Some States, such as Kogi, have been Taxing Telecommunications firms for the past couple of years and have, at various times, Sealed Base Station sites for Non-payment of Levies.
In addition, the Oyo State Government recently announced that it had Sealed some Masts and Commercial Banks in Ibadan over Non-payment of Taxes.
Similarly, the Osun State Government hired a Private Consulting Firm to conduct a Telecom Infrastructure Installation audit, which is expected to Generate N500 million in Revenue.
The Association of Licensed Telecoms Operators of Nigeria (ALTON) has appealed to President Bola Tinubu to urgently Intervene in this Matter.
ALTON warns that the Indiscriminate Shutdown of Telecom Facilities could Disrupt Services and negatively impact the quality of Service.
Telecom Infrastructure is considered a critical National Asset that must be protected, and sealing Telecom Masts and Installations to enforce Tax Collection could disrupt voice and Data Communication.
Gbenga Adebayo, Chairman of ALTON, decried the Imposition of multiple Taxes and Levies on Operators, describing it as a Disincentive to the growth of the Telecom Industry, despite its significant Contribution to the Country’s GDP.
He urged Governments at all Levels to Collaborate and protect Telecom Infrastructure, emphasizing its Importance for Socio-economic Development, Job creation, the Digital Economy, and Financial Inclusion.
Adebayo also called for the Formulation and Implementation of a Policy to protect Telecom Infrastructure from Theft, destruction, Interference, and Overlapping regulatory functions by multiple Government Agencies.
He argued that the Audit of Telecom Infrastructure by Osun State and the Imposition of Levies on Operators constituted double Taxation, adding to the already 46 Taxes Paid by Operators across the Country.
The ALTON Chairman appealed to the Federal Government and the Nigerian Communications Commission (NCC) to Intervene and stop State Governments from Arbitrarily Sealing BTS Sites and engaging in Practices that harm the Telecom Sector’s growth.
He Warned that the Impunity seen in Kogi, Oyo, and Osun could spread to other States and negatively affect the quality of Service if not addressed.
This situation is of great concern to the Telecom Industry, as Services and support systems are Capital-intensive, and State Government actions Threaten the Significant Investments made in the Sector.
