Telecommunications

Nigeria Government Suspend Proposed Telecommunications Tax

Federal Government has suspended its proposed excise duty on telecommunication services

Published

1 year ago

September 6, 2022

The Minister of Communication and Digital Economy, Isa Pantami announced that the Federal Government has suspended its proposed excise duty on telecommunication services.

He made the declaration on Monday during the inaugural meeting of the Presidential Committee on Excise Duty For Digital Economy.

It will be recalled that Investors King had reported in August that the Communication Minister kicked against the Federal Government proposal to impose a 5% tax on call, text, and broadband used by Nigerians

The minister lamented that the telecommunication sector is already overwhelmed by excessive and multiple taxation. He insisted that the proposed 5% tax on call, text, and broadband will increase the cost of telecommunications services.

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.”

At the inaugural meeting today, Pantami said he personally rejected the policy and advised President Muhammadu Buhari against it given the effects it would have on the digital economy.

According to him, the introduction of excise duty in the telecommunication and information and communications technology industry would jeopardise the successes already recorded within the industry.

However, the suspension of the 5% telecommunications tax will have a significant effect on federal government revenue. The telecommunication tax which was captured in the finance act was to generate about N160.46 billion for the federal government in 2023.

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Telecommunications

Airtel Africa Announces Interim Dividend Amidst Robust Half-Year Performance

Published

4 weeks ago

November 15, 2023

Investors King

Airtel Africa Plc has declared its intention to pay an interim dividend for the half-year period ending September 2023.

The telecommunication giant, listed on both the NGX and the London Stock Exchange, shared this development in a corporate notice titled ‘Announcement of Interim Dividend Currency Exchange Rates’ filed with the Nigerian Exchange Limited on Tuesday.

Airtel Africa disclosed that the interim dividend, amounting to 2.38 US cents per ordinary share, would be disbursed on December 15, 2023, to qualified shareholders.

Notably, shareholders have the option to receive the dividend in US dollars, GB pounds, or Nigerian naira, based on their preference.

The adopted exchange rates for currency conversion were set at 1 USD = 858.24 Nigerian naira and 1 USD = 0.8190 GB pounds.

Airtel Africa emphasized that these rates were determined by the exchange rates applicable to the US dollar as of Friday.

Despite recording a loss after tax of $13 million, primarily attributed to a foreign exchange loss of $471 million in finance costs, Airtel Africa showcased robust performance in its half-year report.

The company reported a 19.7% growth in revenue currency to $2.62 billion, with double-digit revenue growth across all segments.

Mobile services revenue increased by 18.3%, driven by growth in voice and data revenue, while mobile money revenue saw a significant surge of 30.9%.

The company’s EBITDA also exhibited a commendable increase of 21.2%, reflecting a 70 basis points margin improvement over the prior period.

Airtel Africa remains resilient in the face of inflationary cost pressures and foreign exchange headwinds, showcasing a promising outlook for investors.

Telecommunications

MTN Evaluates Exit from Three African Markets Amid Regional Challenges

Published

4 weeks ago

November 13, 2023

Investors King

African telecommunications giant MTN is reportedly contemplating an “orderly exit” from its operations in Guinea-Bissau, Guinea-Conakry, and Liberia, according to a report by Business Insider Africa.

The company, which currently operates in 19 countries across Africa and the Middle East, aims to streamline its portfolio and address challenges in the West and Central Africa (Weca) region.

While the exact reasons for the potential exit remain undisclosed, MTN’s financial reports indicate broader challenges in the Weca segment.

CEO Ralph Mupita highlighted concerns over inflation and currency devaluation in multiple markets.

The company’s 2022 financials revealed a 1.7% decline in EBITDA margin due to pricing pressures, fintech channel subsidies, and macroeconomic hurdles.

Although Guinea-Bissau, Guinea-Conakry, and Liberia contribute only 1.6% to MTN’s total revenue, the move aligns with the company’s strategic focus on optimizing its market presence.

MTN holds a significant market share, approximately 30%, in Guinea-Bissau and Guinea-Conakry, while Lonestar MTN is the second-largest telecom operator in Liberia.

The potential exit reflects MTN’s commitment to adapting its business strategy to navigate the evolving economic landscape and optimize its portfolio for sustained growth.

Telecommunications

Nigeria’s Ministry of Communications Secures N1 Billion for Three Million Technical Talent Program

Published

1 month ago

November 8, 2023

Investors King

Dr. Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, has announced the acquisition of N1 billion in funding for the implementation of the Three Million Technical Talent program.

During a council meeting with directors of the Information Communication and Technology department in all Ministries, Departments, and Agencies (MDAs) in Abuja, Dr. Tijani emphasized the ministry’s commitment to building Nigeria’s technical talent base, strengthening the nation’s digital economy.

The minister highlighted the critical role of technology in the country’s economic growth and development.

He emphasized that effective collaboration, the creation of an enabling environment, and a workforce of public servants prepared to embrace change are essential to achieving the best results.

Dr. Tijani stated, “The best way to address societal problems is to bring people together to discuss and find solutions. Our meeting must be critical and effective in resolving issues to produce tangible outcomes. This will attract stakeholders and private investors who will provide the necessary resources.”

He emphasized the ministry’s commitment to its mission of training three million individuals, even in the absence of a dedicated budget.

The support of various organizations and companies has made it possible to secure N1 billion for the project, demonstrating the increasing interest and investment in Nigeria’s digital talent and technology initiatives.

Dr. Tijani urged the council to play its part in realizing the administration’s digitization objectives.

He called for the transformation of the civil service to maximize the utilization of limited resources, eliminating outdated practices, such as paper-based documentation, to usher in a new era of efficiency and digital innovation.