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Communications Tax: 25% of Licensed Operators to Shut Down

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Industry players have projected that Nigeria would lose another 25 per cent of licensed operators if the Communication Service Tax bill is passed into law.

Already, the country has lost 57 per cent of licensed operators to multiple taxations.

The National Chairman of  Association of Licensed Telecommunications Operators of Nigeria, Mr. Gbenga Adebayo, said on Thursday that despite the growth already recorded in the industry, telecoms operators continued to face challenges emanating from recurring taxations and the regulatory environment.

He said, “When I became the chairman of ALTON three years ago, there were 35 licensed telecoms companies comprising some small players, those in the fixed line, Code Division Multiple Access and Global System for Mobile communications players that were doing well, though not without challenges.

“However, today, that figure has come down drastically, as we now have just about 15 licensees still operating and this tells you that something is not going well.”

A top  employee in one of the four major telecoms firms said that findings from a study conducted by the regulatory department of his company showed that no fewer than 25 per cent of the existing licensed operators would cease operating in the country one year after the CST bill is passed.

Speaking on condition of anonymity, he added, “Should this happen, then the Federal Government should be prepared for the worse, as so many Nigerians will be rendered jobless. It will be too bad for the telecoms sector that is currently seen as one of the highest employers of labour.”

The ALTON chairman said that the loss of about 20 operators, representing about 57 per cent, within a space of three years “has been traced partly to the problem of regulatory environment, where there are multiple regulations and imposition of all kinds of taxes on the operators from the federal, state and local levels.”

He said, “The fact that, as operators, we are still confronted with wilful and non-wilful damage, arising from insecurity in the past years, multiple taxation, especially the Right of Way charges and attendant problem of indiscriminate shutdown of telecoms infrastructure, among others, suggests that regulations in the industry remain unfriendly with varying degrees at different levels of government.”

He said that the RoW in most states remained exorbitant as government agencies, especially at the state and local levels, continued to perceive telecoms as ‘cash-cow.’

“It is only in Lagos now that we have been able to achieve better understanding from the government. For instance, Lagos State Government, having realised the great impact pervasive deployment of telecoms infrastructure and unhindered access could have on the state’s Gross Domestic Product, three years ago, crashed RoW tax to N500 per metre.”

“Conversely, in states such as Osun and other states, operators are charged N8, 000 per metre covered while laying their fibre optic cables in addition to other laughable charges on the operators. These are some of the things that we face as operators and it is telling on our sustainability as a business with the smaller operators being the most susceptible, thereby leading to their collapse,” he said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Government

Senate Suspends Senator Abdul Ningi for 3 Months Over Budget Padding Allegations

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Abdul-Ahmed-Ningi

The Senate has announced the suspension of Senator Abdul Ningi for three months following his allegations of budget padding to the tune of N3.7 trillion in the 2024 budget.

Ningi, who represents Bauchi Central and chairs the Senate Committee on Population, had made the claims in a recent interview with the Hausa service of the BBC.

During a plenary session, Senator Olamilekan Adeola, the Chairman of the Senate Committee on Appropriations, raised a motion to address Ningi’s allegations, citing the urgent need to address what he termed as “false allegations.”

The transcript of Ningi’s interview was read on the Senate floor, prompting deliberation on the appropriate action to take.

Initially, Senator Jimoh Ibrahim proposed a 12-month suspension for Ningi, but Senator Chris Ekpeyong moved to reduce it to six months.

Eventually, Senator Garba Maidoki amended the motion further, suggesting a three-month suspension.

The amended motion was put to a voice vote, and Senate President Godswill Akpabio announced the decision to suspend Ningi for three months.

Following the ruling, Ningi was escorted out of the Senate chamber by the Sergeants-at-arms.

The suspension comes amidst division within the Senate over Ningi’s claims, with some senators disowning his allegations and calling for a thorough investigation.

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Ekiti Governor Unveils Multi-Billion Naira Relief Programmes Amid Economic Crisis

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Biodun Oyebanji

Ekiti State Governor, Mr. Biodun Abayomi Oyebanji, has announced a comprehensive relief package aimed at alleviating the hardship faced by the people of the state.

The relief programs encompass various sectors to cushion the impact of the economic downturn.

One of the key initiatives entails clearing salary arrears amounting to over N2.7 billion owed to both State and Local Government workers.

This move signifies the government’s commitment to addressing the financial burdens faced by its workforce.

Furthermore, Governor Oyebanji has approved a substantial increase of N600 million per month in the subvention of autonomous institutions, including the Judiciary and tertiary institutions.

This augmentation is intended to enable these institutions to implement wage awards in alignment with State and Local Government workers’ salaries.

In addition to addressing salary arrears, the relief programs extend to pensioners, with the approval of payments totaling N1.5 billion for two months’ pension arrears.

Moreover, an increase in the monthly gratuity payment to state pensioners and local government pensioners will provide additional financial support, totaling N200 million monthly.

The relief initiatives also encompass agricultural and small-scale business sectors.

The allocation of funds for food production and livestock transformation projects underscores the government’s commitment to enhancing food security and economic sustainability at the grassroots level.

Governor Oyebanji emphasized that these relief programs are part of the state’s concerted efforts to mitigate the adverse effects of the economic downturn and foster shared prosperity.

The comprehensive nature of the initiatives reflects a proactive approach towards addressing the challenges faced by Ekiti State residents.

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President Tinubu Orders Immediate Settlement of N342m Electricity Bill for Presidential Villa

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President Bola Tinubu has directed the prompt settlement of a N342 million outstanding electricity bill owed by the Presidential Villa to the Abuja Electricity Distribution Company (AEDC).

This move comes in response to the reconciliation of accounts between the State House Management and the AEDC.

The AEDC had earlier threatened to disconnect electricity services to the Presidential Villa and 86 Federal Government Ministries, Departments, and Agencies (MDAs) over a total outstanding debt of N47.20 billion as of December 2023.

Contrary to the initial claim by the AEDC that the State House owed N923 million in electricity bills, the Presidency clarified that the actual outstanding amount is N342.35 million.

This discrepancy underscores the importance of accurate accounting and reconciliation between entities.

In a statement signed by President Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, the Presidency affirmed the commitment to settle the debt promptly.

Chief of Staff Femi Gbajabiamila assured that the debt would be paid to the AEDC before the end of the week.

The directive from the Presidency extends beyond the State House, as Gbajabiamila urged other MDAs to reconcile their accounts with the AEDC and settle their outstanding electricity bills.

The AEDC, on its part, issued a 10-day notice to the affected government agencies to settle their debts or face disconnection.

This development highlights the importance of financial accountability and responsible management of public utilities.

It also underscores the necessity for government entities to fulfill their financial obligations to service providers promptly, ensuring uninterrupted services and avoiding potential disruptions.

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