Nigeria’s Multiple Taxation Of Telcos Cause Bad Network – Report
TECHDIGEST – Nigeria’s multiple and aggressive implementation of taxation on telecommunications companies is the cause of bad network quality. This was disclosed in a report released by SB Morgen titled “Inside Nigeria’s Subnational Fiscal Crisis”.
The report stated that the telecommunications industry appears to suffer disproportionately from this over taxation in Nigeria. The report also revealed that there are over 40 different taxes and levies meted out upon the Mobile Network Operators (MNOs) carrying out telecom services in Nigeria.
However, the aggressive taxation of this sector has led to the degradation of network quality causing Nigerians to suffer the consequences.
What the report is saying
The report stated that the poor network quality is an evident result of telecoms corporations’ numerous taxation. It said, ”A clear impact of multiple taxations of telecommunications companies is the degradation of network quality. This mostly occurs when state authorities, in a bid to enforce compliance in payment of taxes, lock up the facilities of telecom operators and deny them access to their sites for refuelling, maintenance or fault resolution.”
The report stated that the regulator’s forceful lockout of telcos would result in catastrophic network disruptions, affecting a large number of Nigerians.
The report said, “The lockouts are quite often targeted at large sites, which effectively paralyses a good section of the network, causing complete network outage for the affected communities over an area that could stretch across as many as two or more adjoining states.”
According to the report, the effects of such network failures are not limited to the impacted telecommunications network but may spread to others as affected clients transfer to other network providers when they are unable to enjoy service from their current network providers.
The report said, “telecommunications operators in Kogi State warned that the shutting down of their sites by the Kogi State government in a bid to force operators to pay more taxes and levies could lead to a communications blackout in as many as 11 states.”
The report added that “State governments often lock telcos out of their facilities in a bid to collect various taxes. Oftentimes this leads to a degradation of network quality”