Weak Frameworks, Multiple Taxations Hindering Telecom Industry Growth -Edun
By Stella Enenche, Abuja
The Minister of Finance, Wale Edun has listed weak frameworks and multiple taxations as factors affecting growth in the nation’s Telecommunications industry.
Edun disclosed this on Wednesday at the Business Roundtable on Investments in Broadband Connectivity and Safeguarding Critical National Information Infrastructure, organised by the National Communications Commission (NCC) in Abuja on themed: “Right of Way and Protection of Broadband Infrastructure: The Road to Success in Broadband Investment and Connectivity”.
The Minister who was represented by the Director, Home, ministry of finance, Dr. Ali Mohammed urged the private sector to increase investments in the Telecom sector.
According to him,”this sector is virtually vulnerable, it is compact, and therefore we are calling for our local and international investors to come forward so that we can invest in this particular sector. Government alone cannot do it. We need the cooperation and collaboration of the private sector.
“Of course, problems have been identified in terms of connectivity and broadband infrastructure development in Nigeria. These problems are quite many, but they are not something that we cannot sort of solve some of these problems; we have the problem of weak framework, and we have too many taxation.So there is need for stakeholders to come together and deal with this particular problem. “
The Chairman Nigerian Governors Forum (NGF), Abdulrahman Abdulrazaq who was represented by the Director General of the NGF, Abdulateef Shittu, said the governors are in full support of the nation’s digital transformation.
“We fully support the national commitment to raise broadband penetration to 80% by 2027. Achieving this will require an additional 95,000 kilometers of fiber-optic cable across Nigeria, which the Minister of Digital Economy has alluded to. This is an ambitious task, and one that calls for genuine collaboration among stakeholders gathered here today.
The Executive Vice Chairman (EVC), NCC, Dr. Aminu Maida , disclosed that the earlier approved increase in telecom tariffs has attracted $1 billion.
“In line with our economic regulatory mandate, earlier this year, the Commission approved the application of tariff rates that are both cost-reflective and competitive within the telecommunications industry. This strategic regulatory intervention has significantly strengthened investors confidence in the Nigerian telecommunications
sector.
“I can confirm to you that operators have made collective commitment to investing over $1 billion in additional rollout investments to expand broadband coverage and capacity nationwide,” he said.
The National Security Adviser, Nuhu Ribadu who was represented by AVM, Enabong Efiom, noted that,” the NGF can play a pivotal role by fostering consistency, consensus among states, encouraging compliance through peer engagement, and aligning state policies with national broadband objectives. The forum can also facilitate dialogue to all regulated broadband concerns that hinder digital inclusion and infrastructure growth.”
