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Nigeria’s Data Consumption Jumps 413.79%

Data consumption in Africa’s largest economy Nigeria rose by 413.79% in the last four years, according to the latest data from the Nigerian Communications Commission (NCC).

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Broadband Penetration - Investors King

Data consumption in Africa’s largest economy Nigeria rose by 413.79% in the last four years, according to the latest data from the Nigerian Communications Commission (NCC).

In the last four years, Nigeria’s internet population grew by 41.38 million while Nigeria’s internet data usage increased to 350,165.39 terabytes in 2021, up from 68,154.12 terabytes in 2018.

During the period under review, broadband penetration rose to 40.88% or 38.12 million users in 2021 from 19.97% or 78.04 million users in January 2018.

NCC data showed GSM internet subscribers grew by 41.39 million from 100.23 million in 2018 to 141.62 million in 2021.

This, experts attributed to growing smartphone penetration and more access to data in Africa’s largest economy.

“Smartphone penetration was up by one percentage point to 33 per cent and our data customer base grew by 14.5 per cent, now representing 34.3 per cent of our total customer base,” Airtel stated in a report.

“Data usage per customer reached 2.6 GB per customer (from 1.8 GB per customer) led by an increase in smartphone penetration and expansion of our home broadband and enterprise customers.

“This helped us grow data revenue 31.2 per cent in constant currency. Growing penetration and usage of 3G and 4G data customers helped us grow data ARPU 8.2 per cent. Fourth Generation data usage more than doubled in the year, contributing 62.2 per cent of total data usage on the network in Q4’21.”

The telecommunication giant further added that “Our improved 4G network contributed to an increase in smartphone penetration, in data customers and in up-take of large data volumes, resulting in greater data consumption per customer.”

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

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Telecommunications

Call, Data Rate to Jump 100% as FG Imposes 5% Excise Duty on Telecoms

Call and Data rates could jump as much as 100% once the Federal Government implemented 5% excise duty on telecommunication services

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Services Tax

Call and Data rates could jump as much as 100% once the Federal Government implemented 5% excise duty on telecommunication services, a source from the sector stated.

According to industry experts, the increment will not only impact subscribers but also increase tax burden on telcos which would translate into rise in tariffs.

This, experts explained would increase the total consumption tax on the sector from just the 7.5% Value Added Tax (VAT) to 12.5%, a situation they said would worsen Nigerians’ economic status given the ongoing happenings in the country.

If implemented, Nigerians are now expected to be paying as much as N40 a minute, up from N20 and could be paying up to N2,500 per gigabyte.

Last week, Isa Pantami, Nigeria’s Minister of Communications and Digital Economy, decried the new tax, threatening to take the Federal Government to court for overburden the industry with so much taxes at a time when the telecommunication sector and the entire Nigerian economy was not faring well.

He said: “The 5 percent excise duty will overburden the industry. As a Minister, I was neither consulted nor obtained a memo to that effect. Even the appropriate lawmakers that were supposed to be talked with have also told me they were not.

”Things are not done that way. Besides condemning the tax, we will take every lawful step to guarantee that the tax does not stand.”

However, Ahmed Zainab, Nigeria’s Finance Minister, had different excuse for going ahead with the new 5% excise duty. According to her, the new 5% excise duty was in line with 2020 Finance Act and was part of Federal Government efforts at augmenting the nation’s revenue, especially from the non-oil sector.

The National Association of Telecoms Subscribers and the Nigerian Telecommunication Consumer have joined Pantami and other Nigerians to kick against the decision they considered wicked and inconsiderate.

Chief Adeolu Ogunbajo, president National Association of Telecoms Subscribers (NATCOMS) also added his voice. He said the sector is barely holding its ground with the existing 7.5 percent VAT, additional 5 percent will sum the total VAT in the sector to 12.5 percent. This is a killer move on the sector, he said.

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Telecommunications

Communication Minister Kicks Against FG’s Proposal to Impose 5% Tax on Calls, Text, Data

Nigeria’s Minister of Communications and Digital Economy, Isa Pantami, has kicked against the Federal Government’s plans to impose a 5% excise duty on telecommunications services in the country.

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Nigeria’s Minister of Communications and Digital Economy, Isa Pantami, has kicked against the Federal Government’s plans to impose a 5% excise duty on telecommunications services in the country.

The minister, who spoke at the maiden edition of the Nigerian Telecommunications indigenous Content Expo, NTICE, in Lagos, said the sector, which was already drawing in massive interest, creating jobs, and enlarging huge revenue to the GDP, should not be inconvenienced with such taxes.

He said: “The 5 percent excise duty will overburden the industry. As a Minister, I was neither consulted nor obtained a memo to that effect. Even the appropriate lawmakers that were supposed to be talked with have also told me they were not.

”Things are not done that way. Besides condemning the tax, we will take every lawful step to guarantee that the tax does not stand.”

The minister also argued about the large percentage of importation of ICT and telecoms equipment into the country, even when some of these equipment could be acquired in the country.

He gave a marching order to all stakeholders that henceforth, the Federal Government will not condone importation of anything into the country when it can be manufactured here in the country.

“The sector has to reasonably reduce importation. The Nigerian Communications Commission, NCC, and the National Office for the Promotion of Indigenous Content, NODIT, should carry out this policy.

“By 2025, we’ll be qualified to increase our indigenous content and decrease importation by about 20 percent.”

The Minister’s attack on the excise duty is coming after major stakeholders in the sector, including the Association of Licensed Telecoms Operators of Nigeria, ALTON, Association of Telecommunications Companies of Nigeria, ATCON, and National Association of Telecoms Subscribers, NATCOMS, also kicked against the motion, interpreting it as anti-people, provocative, unusual, cold and unreliable.

At a stakeholders’ forum organized in Abuja by the NCC to shed light on its proposed commission, they also complained that such imposition would help aggravate the misery of the Nigerian masses who already had been pushed into suffering and severe poverty.

The new five percent Excise Duty is part of the new finance act signed into law by the President in 2020. It is meant to be received by the Nigerian Customs Service, and President Buhari gave a ruling that it should be carried out on all telecoms service providers in the country, also on all local and foreign goods and services.

The Minister of Finance, Budget, and Planning, Mrs. Zainab Ahmed, had also at that event, persuaded stakeholders to assist the commission, saying the decision was informed by the dwindling revenue of the federal government from oil and gas.

She said other countries in Africa, involving Malawi, Uganda, and Tanzania, among others, have all keyed into the revenue generation structure.

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Telecommunications

MTN Nigeria Reports 4.2 Million PSB Customers in Two Months

MTN Nigeria has announced that a total of 4.2 million customers have subscribed for the services of its subsidiary, Mobile Money (MoMo).

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MTN Nigeria Communications Plc, a leading telecommunications company in Nigeria, has announced that a total of 4.2 million customers have subscribed for the services of its subsidiary, Mobile Money (MoMo) business that was licensed under the Central Bank of Nigeria’s (CBN) Payment Service Bank (PSB) program in May 2022.

The telecom giant disclosed this in its unaudited report obtained by Investors King.

According to the report, only 2.4 million of the 4.2 million subscribers are presently active on MoMo Payment Service Bank. However, despite the large percentage of inactive customers, the telecoms company said it processed 7 million in transaction volume since it was launched on 16th of May 2022.

The CBN introduced the PSB license to increase financial inclusion and reduce the number of unbanked adults in Africa’s largest economy, Nigeria.

This, the apex bank said would help increase the number of people in the tax net, and subsequently boost tax revenue.

While the CBN is looking to use PSB license to deepen the nation’s financial system, MTN Nigeria, Airtel Africa and other licensed companies are looking to expand their revenue generation via PSB business.

Speaking on the significance of the PSB license to MTN Nigeria’s long-term strategy, Karl Toriola, MTN Nigeria CEO, said “This is an important milestone for MTN Nigeria in our mission to support the delivery of financial services to everyone in Nigeria. Not just those in urban centers and markets, but also people in the rural and remote areas of the country who remain excluded from the financial system.”

He added “We are grateful to the Central Bank of Nigeria (CBN) for their support and guidance through the
process.”

Airtel Africa and MTN Nigeria are now expected to go head to head by leveraging on their broad network to seize a substantial market share of the new PSB space.

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