Taxes on telcos fetch N2.7tr in H1 2024
By Jeph Ajobaju, Chief Copy Editor
Abuja collected N2.78 trillion in taxes from telecom and other information, communications technology (ICT) firms in the first half of 2024 (H1 2024), with foreign digital firms – including Google, Microsoft, X (Twitter), and TikTok – paying N2.55 trillion ($1.5 billion) which they passed on to consumers in Nigeria.
Newly released H1 2024 report by the National Information Technology Development Agency (NITDA) shows that MTN, Nigeria largest mobile network operator, paid N232 billion in taxes, a 586 per cent increase from last year.
MTN also paid 54 separate taxes in H1 2024 to various federal, state, and council agencies.
NITDA Director of Corporate Communications and Media Relations, Hadiza Umar, quoting data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS), disclosed taxes paid by the international digital firms.
NITDA commended Google, Microsoft, X, and TikTok for their compliance with the Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries.
The Code – issued jointly by the Nigerian Communications Commission (NCC), National Broadcasting Commission (NBC), and NITDA – outlines guidelines for promoting online safety and managing harmful content, and NITDA said this has also boosted government revenue by digital companies paying taxes.
“Data from the Federal Inland Revenue Service (FIRS) and the National Bureau of Statistics (NBS) reveal that foreign digital companies, including interactive computer service platforms and internet intermediaries (such as social media platforms) operating in Nigeria, contributed over N2.55 trillion (approximately $1.5 billion) in taxes in H1 2024,” NITDA explained.
“This significant increase in revenue underscores the role of robust regulatory frameworks in shaping compliance and driving revenue growth in the digital economy.”
NITDA affirmed that all the digital platforms have been making efforts to address user safety concerns in line with the Code and the platforms’ community guidelines.
The platforms received 4,125,283 registered complaints in 2023. Content takedown (65.8 million); content removed and re-uploaded after an appeal by users (379,433); closed and deactivated accounts (12.09 million), according to NITDA.
It commended the progress made but stressed the need for continued collaboration and innovation to address emerging challenges and ensure a safer and more responsible digital space.
NITDA announced the Code in June 2022 to regulate social media blogs and online publications.
The Code states in part that internet platforms, including social media, must act expeditiously upon receiving a notice from a user, or an authorised government agency of the presence of unlawful content on a platform.
Platforms must also act quickly to remove, disable, or block access to non-consensual content that exposes a person’s private areas, full or partial nudity, sexual act, deepfake or revenge porn, where such content is targeted to harass, disrepute or intimidate an individual.
States collect most taxes paid by telcos
The Association of Licensed Telecommunication Operators of Nigeria (ALTON) disclosed that state governments collect the majority of taxes paid by its members.
The taxes include building permits, sewage fees, convulsion levies, storage licences, said ALTON President Gbenga Adebayo, who said such taxes increased the operational costs of telcos by 50 per cent in H1 2024.
“The multiple taxes are driven primarily by revenue [drive],” he noted. “There is a perception that the telecom industry is highly profitable and so can be treated as a cash cow.”
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