Executive Vice-Chairman/CEO of the Nigerian Communications Commission (NCC), Professor Umar Garba Danbatta said the Commission, in its determined drive to tackle the intricacies of tax policies and attendant challenges, will continuously engage both the Federal and State Government on the need to harmonize taxation in the telecommunications sector.
Danbatta who made the remark during the “NCC Special Day” at the 18th Abuja International Trade Fair, organized by the Abuja Chamber of Commerce and Industry (ACCI),emphasised the need to create an enabling environment in which the telecommunications companies can thrive and stressed that it is only through a sustainable financing and fair taxation system that the telecommunications industry can ensure economic growth.
He emphasized the significance of the telecommunications industry in the digital economy agenda stating that it connects businesses and empowers governments to provide essential services in an efficient manner.
“The Commission recognizes the fact that telecommunications sector has been a strategic driver of the digital economy agenda of the Federal Government, as it continues to provide the needed digital stamina to support the economy, especially through technology. It is no longer news that telecommunications empowers individuals, connects businesses, strengthen industries and enable Governments to provide essential services efficiently thereby driving development and prosperity.
” Information Communications Technology (ICT) is not only one of the fastest growing industries – directly creating millions of jobs – but it is also an important enabler of innovation and development, as it provides the backbone infrastructure for transactional business and taxation for Government. However, maintaining this digital infrastructure and its continued growth necessitates substantial investment, ” he said.
“As regulators, we understand that this financing should be stable, accessible and conducive for industry growth. Taxation while essential for funding of Government initiatives must strike a delicate balance between revenue generation and industry growth.
” Our role as regulator, is to advocate for fair taxation practices that do not stifle innovation or place undue burden on consumers. We acknowledge the intricacies of tax policies but emphasize the importance of creating an environment where telecommunications companies can thrive. To address these challenges the Commission continuously engage both the Federal and State Government on the need to harmonize taxation in the telecommunications sector.
“NCC’s regulatory efforts in deepening access to digital services will benefit Nigeria and make it competitive comparable with other economies in the areas of job creation; contribution to Gross Domestic Product (GDP) growth; emergence of new services and industries; workforce transformation; and business innovation.
” It is in our response to ensuring that Nigeria is competitive in all these areas that the Commission continuously puts a number of regulatory measures in place to ensure seamless access by Nigerians to telecommunications services in order to deepen competitiveness of the Nigerian economy by making our businesses and industries digitally compliant.
” In Nigeria today, the number of active mobile subscriptions reached 220,715,961 million as at August 2023, while Teledensity stood at 115.63 per cent at the same period. Also, the number of active Internet subscribers was 159,034,717 Million with broadband penetration at 45.57 per cent as at August, 2023. In this new environment, the competitiveness of Nigerian businesses depends on their ability to leverage on new technologies by acquiring the necessary digital skills to do business on an international scale. This in turn benefits the economy financially,”he added.