Challenges of Telecoms Infrastructure Deployment in Nigeria Amidst Multiple Regulation and Taxation

In recent years, Nigeria has witnessed a rapid expansion in its telecommunications sector, driven by the increasing demand for connectivity and digital services. However, this growth is not without its challenges, particularly in the deployment of telecom infrastructure, where multiple layers of regulation and taxation pose significant hurdles.

Navigating the complex regulatory landscape in Nigeria’s telecoms sector has become a formidable task for industry players.

A document from the Nigeria Communication Commission (NCC) titled: “Telecoms Infrastructure Deployment in Nigeria and the Issues of Multiple Regulation/Taxation”, revealed that some of the states have established special Agencies to collect these additional levies and taxes from the operators.

The list showed how Governments at all levels of the Federation make it difficult for the telecom companies to deploy the infrastructure needed to drive the nation’s digital economy to the desired destination.

This taxation is the major impediment to telecom infrastructure deployment, as Telecom companies find themselves entangled in a web of levies imposed by federal, state, and local governments. These taxes, not only inflate operational costs but also hinder the swift expansion of networks.

The Commission disclosed that in Cross River State, the Internal Revenue Service demanded N510 million for cell site revenue between 2005 and 2010 from telecoms while the operators were also expected to pay the Ministry of Lands and Housing Town Planning Authority N1.2 million per base station site before works commence.

Similarly, in Delta State, the NCC said that the Ministry of Environment demanded N276 million from a single operator as an ecological tariff levy, and that is besides N1.2 million collected by each Local Government Environment Ministries for gaseous emission, effluent discharge, sanitation fees/levies cell sites.

Telecom companies are also faced with the right-of-way (RoW) issue, with access to land for laying fiber optic cables often delayed or obstructed due to bureaucratic processes and community disputes. Streamlining the RoW acquisition process is essential for ensuring the timely deployment of infrastructure and bridging the digital divide.

Another challenge faced by telecom operators is the rampant vandalism of infrastructure. Fiber optic cables are often damaged, leading to service disruptions and additional repair costs. Addressing this issue requires collaboration between telecom companies, law enforcement agencies, and local communities to enhance security and protect critical infrastructure.

To tackle these issues, stakeholders, including the government, regulatory bodies, and telecom operators, must collaborate to create a conducive environment for infrastructure deployment. This involves revisiting and harmonizing regulations, implementing fair taxation policies, and actively addressing challenges such as right-of-way and infrastructure vandalism.

While the telecoms sector in Nigeria continues to experience remarkable growth, addressing the issues of multiple regulations and taxation is essential for sustained development. A concerted effort by all stakeholders is crucial to create an enabling environment that fosters efficient infrastructure deployment, ensuring that the benefits of digital connectivity reach every corner of the nation.