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Why Nigeria’s government adjusted excise duty on telecom services

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Minister of Communications and Digital Economy, Isa Pantami. Photo credit: Isa Pantami on Twitter
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Nigeria’s Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami, has given reasons for adjusting the excise duty for telecommunication services in the country.

 

Confiance News gathered from a statement from the Nigerian Communications Commission (NCC) on Tuesday.

 

The Minister said the Committee’s submissions can be summed up in three arguments put forward to justify why additional burden in form of taxes or any level should not be imposed on the telecom sector to prevent a reversal of the important contribution the sector is making to the growth of the Nigerian economy.


CAPTION:
L-R: Jacqueline Olowolayemo, Senior Administrative Manager, Mafab Communications Ltd.; Prof Umar Danbatta, Executive Vice Chairman/Chief Executive Officer, Nigerian Communications Commission, Prof Isa Ali Ibrahim Pantami, Hon. Minister of Communications and Digital Economy; Dr. Vincent Olatunji, National Commissioner/Chief Executive Officer, Nigeria Data Protection Bureau and Anas Galadima, Senior Manager, Public Affairs, MTN Nigeria, during a press briefing by the Presidential Review Committee on Excise Duty in the Digital Economy Sector in Abuja on Tuesday (March 21, 2023). Photo credit: NCC.

“Our justifications are based on three premises: First, is the fact that operators in the telecoms sub-sector of the digital economy industry currently pay no fewer than 41 different categories of taxes, levies and charges; secondly, that telecoms has continued to be a major contributor to Nigerian economy in terms of Gross Domestic Product Contribution (GDP).

 

“The third ground for contesting the Excise Duty in telecom sector is the fact that, despite increase in the cost of all factors of production across sector, and naturally leading to increase in costs of products and services, telecom sector is the only sector where cost of service has been stable and in many cases continued to go down over the past years and therefore, adding more burden will destroy the sector,” the Minister said.

 

The Minister also informed the gathering that the President, having looked into the arguments put forward by the Committee and relying on the provision of the Section 5 of the Nigerian 1999 Constitution, as amended, has therefore, exempted telecom sector from the list of sectors to pay the excise duty as stated in Finance Act of 2021 and other subsidiary legislations, all of which are not as superior as the Constitution which permits the President to grant such waiver.

 

Confiance News recalls that on Tuesday, March 21, 2023, Pantami announced a removal of the telecommunications services subsector

 

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