Huge RoW charges, multiple taxations discourage investments-NCC

By Ladesope Ladelokun

The Nigerian Communications Commission has harped on the need for government at all levels to shun imposition of multiple taxes and huge Right of Way (RoW) charges to encourage Foreign Direct Investments (FDIs) and local investments.

The Executive Commissioner, Stakeholders Management of the NCC, Mr Sunday Dare, made this call during the North East Stakeholders’ Parliament Meeting with Relevant Agencies in Yola, Adamawa State during the weekend.

Dare said it was worrying that stakeholders still talk about protecting telecoms infrastructure by government agencies, or from multiple taxation and regulation when government at all levels should be providing an enabling environment for the development of infrastructure by providing necessary incentives to operators.

Represented at the event by Head, Compliance and Monitoring of the NCC, Alkasim Umar, Dare says despite the fact that the imposition of heavy taxes on telecoms infrastructure, huge RoW charges funnel huge revenues to the coffers of the state, they discourage investments, deny government of long-term revenues and destroy the foundation for future growth.

He said there was a need for all hands to be on deck to come up with solutions that enable operators to roll out fast and efficient networks that provide opportunities for economic development, adding that improvement in broadband penetration has a significant effect on national Gross Domestic Product.

Meanwhile, the Association of Telecommunications Companies of Nigeria (ATCON) and the Association of Licensed Telecommunications Operators of Nigeria(ALTON) had at a recently held stakeholders’ forum, called for a downward review of the 2.5 per cent Annual Operating Levy(AOL) charged by the Federal Government through the NCC, adding that there was a need to have to have an Executive Order to check incessant taxes imposed on operators.