Right-of-Way Fees, 50% Taxation Impedes Foreign Investments – NCC

The Nigerian Communications Commission (NCC) has decried the prevalent high right of way (RoW) fees and taxation imposed on telecommunication companies in the states, saying they are major impediments to attracting the needed foreign direct investments to improve the sector.
The commission also assured the public of effective service delivery by investing more in the digitalization of its operations in order to address the yearnings of the consumers and improve the telecommunications industry.

The executive vice chairman of the Commission, Dr. Aminu Maida, speaking when he hosted a breakfast meeting with members of the media as part of his interactive sessions and collaboration with major stakeholders to strengthen the industry in Abuja on Tuesday.
The EVC said the commission is committing to making the operating environment easier for the operators in order to attract foreign investment to improve infrastructure.

According to him, “One of the mandates given to us by the honourable minister, which he also derived from the President Bola Tinubu, is that we need to attract more foreign investments into the sector. However, he said this cannot be achieved if the licensees’ return on investment cannot be guaranteed.
“And for our licensees, the commission is committed to making life easier for them. We will be doing a lot of advocacy, working with the minister on their behalf as regards to charges like the RoW fees, which is currently prevalent in all the states, is only a short term gain.

“Imagine the economic activity that would be enabled if we built digital infrastructure in all our states. So we need to work together to remove some of these barriers and inhibitors towards building this digital infrastructure. We want to see how we can convince the states to remove some of these obstacles, like right of way and multiple taxations.
Dr. Maida said some studies indicate that taxation is almost 50 per cent to 55 per cent in some areas in these companies adding “and you would agree with me that if we’re trying to bring in foreign investments, that is not a good picture to paint.”

The NCC boss noted that the commission is investing in its staff to make sure they are skilled up with the right training on all facets and functions that are required, even as he promised to initiate a change in decision making that will be very data-driven.
“All our decisions are going to be backed up by data as much as possible. We want to reduce subjectiveness and take the right decisions that will improve the industry.
“So, we are going to be looking at the processes with a view to also leveraging technology to make us more efficient and deliver our regulatory services in a more efficient manner and also reduce our own internal operating cost,” he said.

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He also affirmed the determination of the NCC to enforce compliance and impose sanctions where necessary to meet the obligations while delivering optimal quality of service to the consumers.
He said “we intend to hold our licensees accountable for all services, after all the consumers pay for the services and they expect the service to be at a certain level or point. So, we will be holding our licensees accountable to ensure they deliver as per their obligations to their licences.”

Apart from the issue of enforcing compliance to the regulations, the NCC boss said he will place a very high premium on collaboration with all critical stakeholders including the media to ensure that everybody is carried along in a cooperative process to create win-win scenarios.
He pointed out that the “commission will be driven by their recognition of the three critical stakeholders in the industry which are the consumers of telecom services, the industry and the licensees.”
He also recognised the crucial importance of the ISPs, submarine landed cable companies, and all of the licensees of the commission and last but not the least the government, stressing that each of these stakeholders has a unique perspective and has different expectations.

He said further that under his leadership the commission is looking to generate favourable outcomes and satisfactions for all stakeholders across the board even as he tasked the media to be fair and professional in reporting the activities of the commission.
“Our initiatives will be designed to foster innovation and sustainable development in the face of opportunities and challenges that arise from the ever changing digital environment,” he said.