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Telecom Subscribers To Pay 5% Tax On Call, Text, Data

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The Federal Government has disclosed that telecommunications subscribers would pay a 5 percent tax on call, SMS, and data services.

This is coming as the Association of Licensed Telecoms Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON), and National Association of Telecoms Subscribers(NATCOMS), described the move as strange, insensitive, and irresponsible.

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DAILY POST learnt this during a Nigerian Communications Commission (NCC) Stakeholders Forum on the Implementation of Excise Duty on all Telecommunications Services’ held on Thursday in Abuja.

Speaking at the event, the Minister of Finance, Budget, and Planning, Mrs Zainab Ahmed urged stakeholders to support the implementation of the 5 percent exercise duty on telecommunications services.

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Zainab represented by the Assistant Director, Tax and Policy, Mr Musa Umar appreciated NCC for providing the platform to increase Nigeria’s revenue generation.

She highlighted that countries in Africa like Malawi, Uganda, Tanzania, and others have all keyed into this revenue generation pattern.

She emphasised that this is needed to change Nigeria’s economic situation for good.

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The issue of revenue is not something that needs to be shied away from, our revenue can no longer take care of our needs as a country.

“Also Nigeria is no longer making enough money in Oil revenue hence the attention is shifting to Non-revenue”.

She explained that the government is committed towards implementing the regulation in a seamless manner that will not affect Nigerians.

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Earlier, in his remark, the Executive Vice Chairman/CEO NCC, Prof Umar Danbatta said the forum is necessitated for stakeholders to get better clarifications on the 5% exercise duty on telecom services implementation.

As the telecoms industry regulator, the Nigerian Communications Commission has engaged with the Federal Ministry of Finance, the Nigerian Customs Service, and consultants from the World Bank to get needed clarifications.

“These engagements enabled us to better understand the objectives and proposed implementation mechanisms of the Excise Duty.

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“Nonetheless, we consider it imperative that these implementing agencies should also meet directly with telecoms industry stakeholders to address areas of concern”, he stated.

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On his part, Comptroller General of the Nigerian Customs Service, Hameed Ali urged stakeholders to be patriotic toward implementing the policy.

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Hameed represented by the Assistant Comptroller General NCS, Mrs A.S Oshishi revealed that telecommunications operators are expected to be dully registered with the service for seamless actualization of the process.

Either to pass the cost to consumer or capture it in an appropriation. The payment is to be made in arrears, on the 21st of every month”, he stated.

Reacting to the development, the Chairman, ALTON, Engr Gbenga Adebayo insisted that the new tax burden would be passed to subscribers.

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“It is a strange move, it appears a bit unusual. exercise duty is supposed to be apportioned to goods and products, but we are surprised this is on Services.

“We will continue to support the government but ALTON, won’t be able to subsidy this on behalf of subscribers in addition to the 7.5% VAT making it 12.5% payable by subscribers to the federal government.

“We currently pay a lot of taxes, running into 39 of them, so we can add more to our existing burden. We won’t be able to absolve this on behalf of subscribers.

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“The 5% Excise Duty will be paid by the subscribers. It will collected by the operators on all voice and data services including OTT and remitted to the Nigerians Customs”, he stated.

On his part, the President of ATCON, Engr Ken Nnamani said, “the proposed exercise duty do not comply with principle of taxation, fairness, certainty, convenience and efficiency”.

Nnamani represented by ATCON Executive Secretary, Mr Ajibola Olude said FG has continued to turn a blind eye to the issue of foreign exchange, others challenges facing telecom operators in Nigeria.

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He added that the telecom industry is bleeding yet the federal government want to exacerbate the plight of operators with additional taxation.

He appealed that the implementation of the exercise duty should be stepped down because many youths in Nigeria will lose their jobs.

He advised that the government should channel its efforts to developing other sectors.

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Similarly, President National Association of Telecoms Subscribers (NATCOMS), Chief Deolu Ogunbajo said the government’s action is insensitivity and ill-timed.

“It is unfortunate that 5 percent exercise duty is coming again together with other 38 taxes.

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He said, other countries in Africa paying 5% tax on telecommunications services do not have 39 others taxes.

In his words, “this is insensitivity, and irresponsible. Government should not kill the telecom industry”.

DAILY POST gathered that the affected telecommunications services include all services that required license from NCC. It is talk time, Short message services(SMS), call-back services, call facilitation through VoIP, and an international call gateway.

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Recall that on 31 December 2020, President Muhammadu Buhari signed into law the Finance Bill 2020 (now Finance Act 2020) which introduced amendments to 14 tax and fiscal legislations in Nigeria.

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FCT Court Summons Dino Melaye For Non-payment Of Over N500m Tax

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Former Senator representing Kogi West, Dino Melaye, has been summoned to the Federal Capital Territory Magistrate Court over alleged failure to pay his mandatory Personal Income Tax for 2023 and 2024.

The summons dated August 21, 2025, also included that an underpayment of taxes in 2020, 2021, and 2022 owed by Melaye requires him to appear before the Magistrate Court at Wuse Zone II, Abuja, on September 5, 2025.

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According to the FCT Internal Revenue Service, Melaye only paid N85,000.08 in 2019, N100,000.08 in 2020, N120,000 in 2021, and N1,000,000 in 2022, despite declaring much higher annual incomes.

It revealed that, for instance, in 2022, he declared an annual income of over N6.5 million.

READ ALSO:FCT Police Arrest Man Over Death Of 3-year-old Boy Who Drowned In Uncovered Septic Tank

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It was revealed that an administrative assessment for 2023 and 2024 was issued on May 23, 2025, but when Melaye failed to respond within 30 days, a notice of best judgment assessment was issued on June 23, 2025.

The notice outlined that Melaye’s total tax liabilities for 2023 and 2024 were assessed at N234,896,000.00 and N274,712,000.00, respectively.

The notice read, “Despite reminders and ample time provided, your non-compliance with Section 41 of the Act constitutes a breach of your obligations.

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“Consequently, the Federal Capital Territory Internal Revenue Service (FCT-IRS) has, in accordance with Section 54(3) of the Personal Income Tax Act, proceeded to raise a Best of Judgment Assessment in respect of your tax liabilities for the years under review.

READ ALSO:FCTA Local Contractors Protest Non-payment Of N5.2bn Bills

Accordingly, your tax liability has been assessed in the sum of N234,896,000.00 and N274,712,000.00 for the period of 2023 and 2024, respectively. The computation and assessment are attached for your action.

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“Please note that the Service has also identified income under declaration and under payment for the 2020, 2021 and 2022 years of assessment, during which payment of N1,000,000.00, N120,000.00 and N100,000.00 were made respectively. Notices of additional will be issued upon the conclusion of our review.

“Your are hereby informed that you have the right to object to this assessment within thirty (30) days from the date of receipt of this notice. Any objection must clearly state the grounds of your objection and be substantiated with relevant supporting documents.

“Failure to make payment or file objection within the stipulated period will result in the assessment being deemed final and conclusive, and recovery proceedings will be initiated without further notice,” the FCT-IRS said.

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FG Shuts Illegal Gold Mining Site In Abuja

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The Minister of Solid Minerals Development, Dele Alake, has directed mining marshals to seal an illegal gold mining site in Gwagwalada, Federal Capital Territory, to avert potential environmental hazards.

This was contained in a statement signed by the Special Assistant on Media to the Minister, Segun Tomori, on Wednesday.

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This follows an earlier operation on August 16, 2025, which led to the recovery and sealing of another site around the District 2 Extension layout in Gwagwalada, where 16 suspects were arrested.

Authorities confirmed that the suspects will be prosecuted soon.

READ ALSO:FG Shuts 22 Illegal Tertiary Institutions

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He said, “Following reports of illegal gold mining in the Gwagwalada area of the Federal Capital Territory, the Minister of Solid Minerals Development, Dele Alake, has directed the mining marshals to seal off the site to mitigate potential environmental hazards.”

Preliminary findings revealed that artisanal miners invaded the Gwagwalada area after a gold vein was accidentally discovered during the digging of a soakaway pit near a residential property.

The latest incident occurred on farmland behind CKC in Gwagwalada.

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Upon receiving intelligence on renewed unlawful mining activity, “Alake promptly ordered the deployment of mining marshals to secure the site,” the statement read.

READ ALSO:FG Security Agency, Nigerian Army Move To Tackle Illicit Small Arms, Light Weapons

During an on-the-spot assessment on Wednesday, officials of the ministry led by the Director of Mines Inspectorate, represented by the Deputy Director, Sunday Okhuoya, “expressed satisfaction with the level of compliance with the minister’s directive, disclosing that relevant departments of the ministry have launched a thorough investigation to unravel the root of these incidents whilst recommending measures to prevent a recurrence.”

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Commander of the Mining Marshals, Assistant Commandant of Corps John Onoja, confirmed that “his team has established 24-hour surveillance over both affected sites, pending the outcome of the Federal Government’s ongoing inquiry.”

Alake, cautioning residents to steer clear of the areas, reiterated the Federal Government’s resolve to eradicate illegal mining activities nationwide.

He also disclosed that the ministry was fast-tracking the deployment of satellite surveillance technology to monitor mining operations and strengthen enforcement capacity.

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Ondo Bans Graduation Ceremonies In Primary, Junior Secondary Schools

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The Ondo State Government has banned private schools from organising graduation ceremonies for pupils of nursery and primary schools, as well as students of Junior Secondary School in the state.

The state Commissioner for Education, Professor Igbekele Ajibefun, on Wednesday, said this was part of the decision of the state government to sanitize the education sector of the state.

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According to the commissioner, other decisions included the prohibition of illegal and unregistered schools, the banning of graduation ceremonies for nursery schools and the re-accreditation of all private schools for quality assurance.

Ajibefun, who spoke with all proprietors and proprietresses of schools in the 18 local government areas, in Akure, the Ondo State Commissioner for Education, Science and Technology, Professor Igbekele Ajibefun, declared that the state government was poised to reposition the education sector and was taking deliberate steps to encourage and support private school owners through different policies.

READ ALSO:Benue Bans Nursery Graduations, Customised Textbooks In Schools

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The Commissioner said, “My interactions start with private school owners because the private sector plays a critical role as you are major stakeholders in the education business. It is more serious than any other business.

“It is obvious that things have gone bad in the education sector; there are urgent issues we need to address so that we can bring back the lost glory.

“The schools operating illegally in the state would be given a six-month grace period to get approval, and the state would review the conditions for school approval to make it easier.

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“When you run an unapproved school, you are running an illegal business. This administration will not allow illegalities, and that is the reason we are reviewing it. In the next couple of weeks, the new conditions will be rolled out. All private schools operating in the state must meet minimum standards.

READ ALSO:Edo Issues New Guideline On Education, Says Siblings’ Textbooks Transferable, Bans Graduation For KGs, Others, [A MUST READ]

“We are also banning elaborate graduation ceremonies, especially for nursery and JSS classes in state.”

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Ajibefun also stressed that the state would no longer tolerate schools organizing excursions without approval or clearance from the Ministry due to the state of security in the nation.

He advised private school owners to be circumspect on the issue of making extra lessons compulsory after normal classes.

READ ALSO:Another Ondo Varsity’s Female Student Killed By Boyfriend

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On the reuse of textbooks, the government has banned the exploitation of parents through the purchase of new textbooks every year, stating that siblings of a particular pupil can continue to use the same textbook for a period of time.

The commissioner also mentioned that the process of digitizing all schools in the state was in progress, noting that all students in the state’s primary and secondary schools would soon be migrated to the digital platform of the Ministry of Education.

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