Lower telecom taxes to drive investments, operators urge FG

The Global System for Mobile Communications Association (GSMA) is urging the Nigerian government to lower telecom taxes to stimulate investments in the country’s digital economy. According to Angela Wamola, the Head of Sub-Saharan Africa at GSMA, Nigeria’s complex tax system is hindering telecom operators’ ability to expand services and contribute to economic development.

Rising operational costs, driven by increasing energy prices, coupled with challenges in accessing foreign currency, have put significant strain on telecom operators in Nigeria. The telecom sector, which accounted for 13.5% of the country’s GDP in 2023, is facing financial losses and deteriorating performance due to high taxes and right-of-way charges.

To address these issues, Wamola recommends streamlining taxes, harmonizing right-of-way charges, and reducing multiple levies. Implementing these changes could not only benefit the telecom sector but also boost economic growth, improve connectivity, and increase access to digital services for millions of Nigerians.