TELCOs pay N600bn tax to economy yearly

Telecommunications operating companies said yesterday that the N600 billion tax they pay to the economy could improve if the states and local government in the federation desist from arbitrary imposition of taxes and levies on its facilities which slowing down broadband rollout.

During a courtesy call on Vice President Yemi Osinbajo at the State House, Abuja, the Association of Licensed Telecommunications Operators of Nigeria (ALTON), the umbrella body for all providers of telecom service in Nigeria, said the sector accounted for about 10 per cent of nominal GDP in 2014.

With a direct contribution of around N600 billion in the same year, the sector accounted for over 30 per cent of the Nigerian Foreign Direct Investment (FDI) since deregulation in year 2001 and well up to half of our country’s FDI in between some years since 2001. It has also created over 20,000 direct jobs since liberalisation and 1.5 million indirect jobs.

Engr Gbenga Adebayo, chairman of Alton who led the delegation said the easier access to basic communication services has transformed personal and business productivity and facilitated better government and security services delivery. ICT is also having a direct impact on the performance of Government at all levels.