CITAD rejects telecom tax, suggests inclusivity measures

The Centre for Information Technology and Development (CITAD) has kicked against the planned reintroduction of the telecom tax by the Federal Government.

CITAD’s position was made known in a statement signed by its Executive Director, Y.Z Ya’u, . He said “(CITAD) expresses firm opposition to this proposed reintroduction of telecom taxes as part of efforts by the Nigerian government to secure a new $750 million loan from the World Bank.”

He said further, “While we acknowledge the country’s need to increase its revenue sources, we believe that taxing telecommunication services, especially at this critical time when banks and power sectors are introducing more charges and increasing their charges, would have greater consequences on the lives of the common man, rather than facilitate Nigeria’s journey towards digital transformation as many would abandon the sector.”

The CITAD statement reads in full: “Reports by many media organizations in the country have indicated that the Nigerian government, under the Nigerian Communication Commission (NCC), is planning to reintroduce the previously suspended telecom tax in the country. This is a worrying trend that needs to be addressed before Nigerians are plunged into another catastrophic hardship.

“As stakeholders who (are) deeply invested in the digital future of Nigeria, the Centre for Information Technology and Development (CITAD) expresses firm opposition to this proposed reintroduction of telecom taxes as part of efforts by the Nigerian government to secure a new $750 million loan from the World Bank. While we acknowledge the country’s need to increase its revenue sources, we believe that taxing telecommunication services, especially at this critical time when banks and power sectors are introducing more charges and increasing their charges, would have greater consequences on the lives of the common man, rather than facilitate Nigeria’s journey towards digital transformation as many would abandon the sector.

“This proposed telecom tax, as outlined in the Stakeholder Engagement Plan for Nigeria’s ARMOR program, will exacerbate the already existing challenges and barriers of affordability and accessibility in the country. Instead of adding another burdens and financial constraints to citizens, it would be better for the government to prioritize and focus more on measures that will bring down the cost of access to technology, thereby enabling more Nigerians to harness its transformative power. These initiatives can be on providing and facilitating the deployment of community networks to hard to reach areas and those with no connections.

“Fellow Nigerians, it is of significant importance to note that affordable access to telecommunications services is not merely a matter of convenience nor a privilege but a fundamental enabler of socioeconomic development and inclusive growth. By providing a conducive environment for widespread digital connectivity, Nigeria can unlock immense potential and resources across various sectors.

“Furthermore, extending access to thousands of unconnected communities in the country should be a paramount priority by the present government. By bridging the digital divide and empowering these communities with connectivity, Nigeria can have an inclusive development and accelerate its progress towards becoming a digitally inclusive nation.

Ya’u said “We call upon the Nigerian government to reconsider its plan and explore alternative strategies to enhance revenue generation without compromising the affordability and accessibility of telecommunications services.

“Based on the above, as an organization deeply involve in providing community networks to the underserved and unconnected communities in Nigeria, we consider it our responsibility to call on the Nigerian government, as a matter of public interest and national development, to implement the following in order to ensure inclusivity and bridge the digital divide in the country:

“Prioritize investment in last-mile connectivity infrastructure to reach remote and rural areas with limited access to telecommunications services.

“Telecommunications companies under the supervision of government agencies should introduce subsidies and incentives to the underserved communities to ensure equitable access to telecommunications services.

“Harmonize and simplify regulatory processes and reduce bureaucratic barriers to entry for telecommunications operators as this will encourage more investment into the sector and drive down costs for consumers.

“Invest in digital literacy programs to empower citizens with the skills and knowledge needed to fully participate in the digital economy.

“Finally, we call on the government to encourage collaboration among government, private sector, and civil society organizations in order to expand access to telecommunications infrastructure in underserved areas.”