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FG removes excise duty for telecoms services

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Mukhtar Yahaya Usman

 

 

The Federal Government has announced the removal of excise duty for telecom sub-sector of Nigeria’s Digital Economy Industry in line with the recommendations of the Committee it constituted to review the applicability of the Duty to the telecom sector which is considered already overburdened with taxation and sundry levies.

KANO FOCUS reports that Minister of Communications and Digital Economy, Prof. Isa Ali Ibrahim Pantami, disclosed this on Tuesday at a press briefing in Abuja.

The briefing was organised to provide updates on the status of the five per cent excise duty, whose applicability to the telecom sector was objected by the Minister in August 2022, following which President Muhammadu Buhari suspended its application to the telecom sector and set up a Presidential Review Committee on Excise Duty in the Digital Economy Sector.

Pantami, who is the Chairman of the Committee, specifically set up for the purpose of reviewing the proposed excise duty in the telecom sector, said the Committee carried out its national assignment and accordingly submitted its report to the President, justifying why the sector should be exempted.

A statement sent to KANO FOCUS by the Director Public Affairs Nigerian Communications Commission Reuben Muoka qouted the Minister saying “the Committee’s submissions can be summed up in three arguments put forward to justify why additional burden in form of taxes or any level should not be imposed on the telecom sector to prevent a reversal of the important contribution the sector is making to the growth of the Nigerian economy.

“Our justifications are based on three premises: First, is the fact that operators in the telecoms sub-sector of the digital economy industry currently pay no fewer than 41 different categories of taxes, levies and charges; secondly, that telecoms has continued to be a major contributor to Nigerian economy in terms of Gross Domestic Product Contribution (GDP).

“The third ground for contesting the Excise Duty in telecom sector is the fact that, despite increase in the cost of all factors of production across sector, and naturally leading to increase in costs of products and services, telecom sector is the only sector where cost of service has been stable and in many cases continued to go down over the past years and therefore, adding more burden will destroy the sector.”

The Minister also informed the gathering that the President, having looked into the arguments put forward by the Committee and relying on the provision of the Section 5 of the Nigerian 1999 Constitution, as amended, has therefore, exempted telecom sector from the list of sectors to pay the excise duty as stated in Finance Act of 2021 and other subsidiary legislations, all of which are not as superior as the Constitution which permits the President to grant such waiver.

Pantami said: “I am happy to report to you that President Muhammadu Buhari, GCFR, has approved the exemption of the digital economy sector from the five percent excise duty to be paid and this is because of the strength of the argument presented to him by the Committee that additional burden on telecom sector will increase the sufferings of Nigerians and that other sectors that are not making as much contribution to the economy should be challenged to do more and pay the five per cent excise duty.”

The Minister assured Nigerians, who are telecom consumers, that the presidential exemption given to the telecom sector shall be sustained by the incoming administration as “the decision by the President is not about any political party or any administration but about Nigeria and welfare of Nigerian citizens.”

The Minister further noted that the Digital Economy Sector has continued to contribute significantly to the growth of the Nigerian economy, having contributed 14.07 per cent to the GDP in the first quarter of 2020; 17.79 per cent in the second quarter of 2021; and 18.44 per cent in the second quarter of 2022.

He said the sector has also increased its quarterly revenue generation for the government from N51 billion to over N480 billion. The increase represents a growth of 594 per cent; while the cost of buying data has also reduced from N1,200 in 2019 to N350 presently, despite the increase in the cost of operations, including the energy challenge that has caused mobile network operators to power base stations with over 32,000 power generating to provide seamless services to their teeming consumers.

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We don’t need your support, FG replies Emir Sanusi

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Nasiru Yusuf Ibrahim

 

 

 

The federal government has said that it does not require the approval of Emir Muhammadu Sanusi II for the economic reforms introduced under the President Tinubu Administration.

 

 

KANO FOCUS reports that the Minister of Information and National Orientation, Mohammed Idris, said this in a statement issued Thursday in response to Emir Sanusi’s recent remarks at a public event in Lagos regarding the administration’s economic reforms.

 

 

Sanusi had made the statement on Wednesday while speaking as the chairman at the 21st Memorial Lecture of Chief Gani Fawehinmi held in Lagos.

 

“I’ve chosen not to speak about the economy and the reforms or to even explain anything because if I explain, it would help this government, and I don’t want to help the government,” he said, adding, “They’re my friends. If they don’t behave like friends, I don’t behave like a friend. So, I watch them being stewed. They don’t even have people with credibility who can come and explain what they’re doing, but I’m not going to help.”

 

Reacting to the Emir’s remarks, Idris in the statement said: “We note the Emir’s acknowledgment of the noble initiatives which, he said, he could explain away but for his decision “not to help the government”.

 

 

“First, we acknowledge that Sanusi, and indeed any Nigerian, has the inalienable right to express an opinion either in the form of commendation or criticism on how the government is being run. However, we find it amusing that a leader, more so one from an institution that ennobles forthrightness, fairness, and justice would publicly admit to shuffling off saying the truth because of personal interest hinged on imaginary antagonism”.

 

 

The minister added that the administration had implemented transformative reforms not because they were easy, but because they were essential for securing Nigeria’s long-term stability and growth, as Emir Sanusi had consistently advocated.

 

 

He said the country is at a pivotal juncture where bold and decisive actions are necessary to tackle entrenched economic challenges, adding the temporary pains currently experienced from these inevitable decisions, as Sanusi himself acknowledged, were a “necessary consequence of decades of irresponsible economic management” more than anything else.

 

 

He insists the reforms are already delivering measurable progress, saying the unification of exchange rates has bolstered investor confidence, which has contributed to increased foreign reserves and strengthened Nigeria’s ability to shield itself from external economic shocks.

 

 

The minister also said the removal of the fuel subsidy had freed up significant resources, allowing for greater investment in critical sectors such as infrastructure, education, and healthcare.

According to Idris, projections from respected institutions, including the World Bank, show an upward trajectory in Nigeria’s GDP, signaling that the economy is firmly on the path to recovery, while by addressing inefficiencies, the country has reduced its debt service-to-revenue ratio, creating a more sustainable fiscal framework for future generations.

 

 

He explained: “It is deeply disappointing that reforms widely recognised as essential by global experts—including by Emir Sanusi II himself—are now being subtly condemned by him because of a shift in loyalty. His Highness, given his background in economics, has a unique responsibility to contribute constructively rather than undermine reforms aimed at collective progress because he feels estranged from his “friends” in government.

 

 

” We urge the Emir to rise above personal interests and partisan undertones and prioritize the greater good of Nigerians.”

The administration said it requires unity, focus, and sacrifice from all stakeholders to rebuild the country while it urges esteemed leaders to refrain from rhetorics that undermine public trust.

 

He said all leaders owe it a duty to champion the collective goal of a prosperous Nigeria, noting at a critical time for the country, what is needed is collaboration, not unnecessary distractions.

 

“President Bola Ahmed Tinubu’s administration’s mission is to lead Nigeria towards economic inclusivity, sustainability, and shared prosperity. The challenges we face demand courage and collective effort, not divisive narratives. This administration is open to constructive dialogue with all well-meaning stakeholders while remaining steadfast in putting the interests of Nigerians above all else.

 

“Let history record this moment as a turning point—when leaders and citizens alike, choose to prioritize the nation’s destiny over personal gain. Together, we will deliver on the promise of renewed hope and a better Nigeria for all”.

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Kano govt inaugurates committee to review education policies

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Nasiru Yusuf Ibrahim

 

 

Following the recent declaration of a State of Emergency on Education, the Kano State Government has inaugurated a 14-member committee to review existing policies in its education sector.

 

KANO FOCUS reports that this initiative follows the recent declaration of a state of emergency in the education sector, highlighting the government’s commitment to reform.

 

The State Commissioner of Education, Dr Ali Haruna Makoda, represented the State Governor, Alhaji Abba Yusuf, at the inauguration ceremony held at the Kano Educational Resource Department Conference Hall.

 

According to the Ministry of Education’s Director of Enlightenment, Balarabe Abdullahi Kiru, the committee’s terms of reference include evaluating and aligning existing policies with the state’s cultural and religious values. The committee will also assess the feasibility of policy implementation and recommend measures to strengthen the education system.

 

Kiru identified four key policies under review: the Kano State Girls’ Education Policy, the Gender Equity and Social Inclusion Policy, the Non-State School Policy, and the Teacher Development Policy.

 

Dr Makoda stressed the importance of the committee and urged its members to utilise their expertise in producing actionable recommendations within the three-week timeframe.

 

Chaired by Malam Abdullahi Muhammad Dutse, the committee includes prominent scholars, government officials, representatives from civil society organisations, and the Emirate Council.

 

Other members are former vice chancellor of National Open University (NOUN):Prof. Abdallah Uba Adamu, Executive Chairman, Zakka and Hubsi Commission Habibu Dan Almajiri, former permanent secretary in the state ministry of education Alhaji Danlami Garba, Kano State Commissioner for Women, Children, and Disabled Affairs Amina Abdullahi (HOD), Tijjani Muhammad Naniya, Special Adviser to the Governor on Emirate Council and kabiru Sani Hanga.

Prof. Abdallah Uba Adamu, receiving appointment letter from Dr Ali Haruna Makoda

The remaining are Malam Munzali M. Mustapha, Prof. Auwal Halliru Arzai, Special Adviser to the Governor on Higher Education, Bashir Aliyu Umar, Chief Imam of Alfurqan Jumma’at Mosque, a representative of the Emirate Council, a representative of Civil Society Organizations, Nura Ja’afar Kura and Ibrahim Bawa, Director of Archives and Publication (Secretary of the Committee).

 

Dr Makoda, who gave the committee three weeks to complete its assignment and submit its report, enjoined them to use their vast experience to come up with recommendations that would enhance the quality of education in the state.

 

Responding, the Chairman of the committee, Abdullahi Muhd Dutse, assured that they were resolved to work as a team to justify the confidence reposed in them.

 

 

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FCCPC, NCC sign MoU to protect consumers’ right     

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Nasiru Yusuf Ibrahim

 

 

 

In a bid to streamline the operation of the telecoms industry and also adequately protect the rights of consumers in the country, the Federal Competition and Consumer Protection Commission (FCCPC) entered into a partnership with the Nigerian Communications Commission (NCC) to ensure speedy growth of the sector.

 

Speaking on Tuesday while welcoming the team from NCC to his, the Executive Vice Chairman of FCCPC, Mr. Tunji Bello

explained that by design, regulations are often interwoven and overlapping.

 

“The principle behind overlapping regulations is simple: it serves as a mechanism to prevent issues from slipping through the cracks.

 

“This explains the interwoven relationship between the Federal Competition and Consumer Protection Commission (FCCPC) and the Nigerian Communications Commission (NCC).

 

“It ensures that if one agency, due to certain limitations, fails to identify or address a consumer issue or regulatory violation, the other agency, potentially with a different perspective, will be able to step in effectively.

 

“This highlights the importance of Section 105 of the Federal Competition and Consumer Protection Act (FCCPA) 2018, which explicitly provides for cooperation and collaboration between the FCCPC and sector regulators.”

 

Bello stated that “this synergy is critical to ensuring comprehensive oversight and consumer protection without regulatory conflicts or duplications.

 

“By this, we are also making life easier for the generality of consumers in dealing with two government agencies on the same issue at the same time.

 

“The signing of this MoU today symbolises the convergence of two diligent government agencies in compliance with legal requirements to eliminate regulatory gaps in the telecoms industry.”

 

He said the journey to this milestone has been both challenging and rewarding. “I am pleased that with Dr Aminu Maida, the Executive Vice Chairman and Chief Executive Officer of the NCC, we have successfully achieved this milestone.

 

“Guided by our shared vision, this partnership will benefit both operators and consumers. It will foster harmonious collaboration between our organisations, streamline operations for telecom operators through a one-stop-shop approach in many instances, and ensure robust consumer protection, fair competition, and the eradication of exploitative practices.

 

“Given the importance of this legal requirement, today’s event should inspire other sector regulators to establish similar collaborative frameworks with the FCCPC, as mandated by Section 105 of the FCCPA. This will ensure that consumers across all sectors enjoy the benefits of coordinated and comprehensive regulatory oversight,” the EVC noted.

 

In his address, the Executive Vice Chairman of NCC, Dr Aminu Maida said, “this occasion is one that I would describe as long coming. It is the outcome of healthy engagements and events that have strengthened the resolve of both our institutions to protect the Nigerian consumer, especially in the communications industry.

 

“Today, we celebrate the beginning of a strategic partnership between two critical regulatory institutions, each committed to advancing the welfare of the Nigerian people through fair competition and robust consumer protection frameworks” he stated.

 

The EVC further emphasized that in an era of rapid technological advancements, the significance of collaboration between regulatory bodies cannot be overstated. “The telecommunications sector, in particular, has become the cornerstone of Nigeria’s economic and social development.

 

“This makes it imperative that we ensure a level playing field for all stakeholders while protecting consumers who depend on reliable and affordable communications services.

 

“By aligning our efforts, the NCC and FCCPC aim to avoid regulatory uncertainty and create clarity for the benefit of all stakeholders in the communications sector and in furtherance of their joint responsibility to ensure the realization of the Federal Government’s Ease of Doing Business objectives.

 

“Our partnership also highlights the importance of synergy in regulatory oversight. The challenges we face today—whether they relate to market abuses, consumer rights violations, or the complexities of a digital economy—demand a united front and a consistent approach to policy implementation.

 

“This MoU will ensure that our respective mandates are harmonized to achieve maximum impact” Maida stated.

 

 

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