By Martin Ekpeke
The Association of Licensed Telecom Operators of Nigeria (ALTON) has vehemently opposed the government’s proposal to reintroduce a 5% excise duty on telecommunications services. The operators argue that the levy will place an undue financial burden on subscribers and could lead to disruptions in service.
In a statement released by ALTON Chairman, Gbenga Adebayo, the association expressed concern about the potential negative impact of the levy on consumers. “We believe it is insensitive to the subscriber today,” Adebayo said, noting that the industry and the economy are already facing significant challenges.
The proposed levy, which would apply to various telecommunications services, gaming, gambling, betting, and lotteries, has been met with widespread opposition from industry stakeholders. The Association of Telecommunications Companies of Nigeria (ATCON) also expressed surprise and concern over the government’s decision.
The reintroduction of the 5% excise duty comes just months after it was suspended by President Bola Ahmed Tinubu in July 2023. The government’s previous attempt to impose the levy in May 2024 as a condition for securing a $750 loan from the World Bank was also met with resistance.
Telecom operators have been advocating for a tariff increase to offset rising operational costs and the impact of inflation. However, the government has declined their request, urging them to implement strategic measures to counter inflationary pressures.
In response to the government’s decision, the National Association of Telecommunications Subscribers of Nigeria (NATCOMS) has announced plans to take legal action against the Federal Government. The association has previously filed a case against the government over the excise duty and is now prepared to revive the legal challenge.
The proposed reintroduction of the 5% excise duty has sparked fears of disruptions in telecommunications services. If the government proceeds with the levy, operators may be forced to implement cost-cutting measures that could impact service quality and accessibility.