Weak frameworks, multiple taxation hinder telecom sector growth – Finance Minister
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The Minister of Finance, Wale Edun, says that weak frameworks and multiple taxation hinder growth in the telecom sector.
Edun said this at a Business Roundtable on Investments in Broadband Connectivity and Safeguarding Critical National Information Infrastructure held on Wednesday in Abuja.
The two-day programme organised by the National Communications Commission (NCC) is with the theme: “Right of Way and Protection of Broadband Infrastructure: The Road to Success in Broadband Investment and Connectivity”
The Minister, represented by the Director of Home, Ministry of Finance, Dr. Ali Mohammed, urged the private sector to increase investments in the telecom industry.
He noted that the Federal Government would address the challenges through stakeholder engagement.
“This sector is virtually vulnerable; it is compact, therefore, we are calling on our local and international investors to come forward so that we can invest in this particular sector.
“Government alone cannot do it. We need the cooperation and collaboration of the private sector.
“The problems have been identified in terms of connectivity and broadband infrastructure development in Nigeria,” he said.
Edun said that though there were other challenges, they were insurmountable.
“There is need for stakeholders to come together and deal with these particular problems ,” the minister said.
The Chairman of the Nigerian Governors Forum (NGF), Abdulrahman Abdulrazaq, stated that broadband connectivity is an essential part of infrastructure and the backbone of Nigeria’s social and economic future.
Abdulrazaq, who was represented by the Director-General of the NGF, Abdulateef Shittu, said that governors were fully in support of the country’s digital transformation.
“We fully support the national commitment to raise broadband penetration to 80 per cent by 2027. Achieving this will require an additional 95,000 kilometers of fiber-optic cable across Nigeria.
“This is an ambitious task, and one that calls for genuine collaboration among stakeholders gathered here today,” said Abdulrazaq, who is also Kwara governor.
The Executive Vice-Chairman of NCC, Dr. Aminu Maida, stated that the earlier approved increase in telecom tariffs had attracted a $1 billion investment into the sector.
“In line with our economic regulatory mandate, earlier this year, the commission approved the application of tarriff rates that are both cost-reflective and competitive within the telecommunications industry.
“This strategic regulatory intervention has significantly strengthened investors confidence in the Nigerian telecommunications sector.
“I can confirm to you that operators have made collective commitment to invest over $1 billion in additional rollout investments to expand broadband coverage and capacity nationwide,” he said.
The National Security Adviser, Nuhu Ribadu, represented by AVM. Enebong Effiom, Director of Critical National Assets and Infrastructure Protection, Office of the National Security Adviser (ONSA), said the NGF should foster consistency and consensus among states.
Ribadu also said that NGF could encourage compliance with security issues through peer engagement and aligning state policies with national objectives.
“The forum can also facilitate dialogue to all regulated broadband concerns that hinder digital inclusion and infrastructure growth,” he said.
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