ICYMI

December 9, 2024

Multiple taxes, RoW issues, vandalism stifling telecom sector — ATCON

Court vacates order stopping MTN, ATC from constructing base stations

File image for illustration.

By  Juliet Umeh

The Association of Telecommunications Companies of Nigeria, ATCON, has expressed concerns over ongoing challenges that threaten the sustainability of the telecom industry. 

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It noted that multiple taxation, Right of Way, RoW bottlenecks, and vandalism had continued to hinder the sector’s growth.

Speaking during the association’s 31st-anniversary in Lagos weekend, President of the association, Mr Tony Emoekpere, stated that these key hurdles must be addressed to unlock the sector’s full potential and secure its future for national development.

Emoekpere emphasized the vital role of telecommunications in driving Nigeria’s digital transformation but warned that systemic issues continued to obstruct progress.

He said: “Our industry has the potential to transform every aspect of Nigerian society, yet challenges such as multiple taxation, right-of-way bottlenecks, and infrastructure vandalism continue to impede our growth. 

“The industry is burdened with overlapping and excessive taxes imposed by federal, state, and local governments. This creates a hostile operating environment, discourages investment, and stifles innovation.

“Obtaining permissions for infrastructure rollout remains a tedious and costly process, delaying broadband expansion and network improvements across the country.

“Persistent vandalism of telecom infrastructure, including fiber cables and base stations, results in significant financial losses and service disruptions, impacting both operators and consumers.’’

To address these challenges, he called for collaborative efforts among government agencies, policymakers, and industry stakeholders. 

He emphasized the need for harmonized taxation policies to eliminate redundancies and attract investment; streamlined right-of-way approvals to fast-track infrastructure deployment and enhanced security measures to protect critical telecom infrastructure from vandalism.

“These challenges require immediate attention and collective action. It is only through a unified effort that we can create an enabling environment where telecommunications can thrive and contribute significantly to Nigeria’s economy.

“The Nigerian telecom industry is at a critical crossroads. Emerging technologies such as 5G and IoT present unprecedented opportunities, but we must first resolve these foundational issues to fully harness their benefits,” Emoekpere said.

The telecom industry’s continued development, he added, was critical not only to the sector but also to the broader goal of transforming Nigeria into a leading digital economy in Africa.