Nigeria promises 30% tax reduction to telecoms investors

By Kokumo Goodie, reporting from Durban, South Africa

The Nigerian Federal Government has promised to give 30% reduction in income tax to new investors in the country.

Speaking at the International Convention Centre, Durban, South Africa, venue of ITU Telecom World 2018 yesterday at the opening of Nigeria Pavilion, the Executive Vice Chairman, Nigeria Communications Commission  (NCC), Prof Umar Garba Danbatta, said Nigeria remains an investment haven with quick returns on investment.

He said besides the 30% income rebate, there are many other incentives lined up for prospective investors, urging the huge crowd of investors to take advantage of the government's gestures.

He said there are also opportunities for investors in digital transmission system including microwave, satellite and optic fibre; submarine cable communications; digital exchanges for both wired and wireless lines; billing systems; data communications networks; broadband and  Integrated Service Digital Network (ISDN).

He said Nigeria needs 120,000km metropolitan optic fibre coverage for ubiquitous network connections nationwide.  With only 38,000km coverage now, this area also beckons on both foreign and local investors.

He said: "Our emphasis is to boost broadband penetration as the next major frontier because more access to telecoms/broadband means more contribution to Gross Domestic Product (GDP).

"Our emphasis is to boost broadband penetration as the next major frontier because more access to telecoms/broadband means more contribution to Gross Domestic Product (GDP).

"So far, by the first and second quarters of 2018, contribution to GDP stood at 9 percent and we are sure that by this quarter, it will hit the 10 % mark.

"Broadband penetration underscores our emphasis on the 8-point agenda and the whole licensing procedures for the Infracos on the Open Model Access basis across the seven geopolitical zones of Nigeria.  A combination of the development of framework for spectrum trading, formulation of policy on national roaming and active engagement of stakeholders and state governments to remove any impediments to telecoms infrastructure deployment of any operating companies as their states, are part of the deliberate regulatory interventions that will surely accelerate bridging of the digital divide in our country."

He said the NCC is intensely focused on bringing efficient, qualitative and affordable ICT platforms within the reach of individuals and corporate bodies through the implementation of our 8-point agenda, the Federal Government’s Economic Recovery and Growth Plan (ERGP) and the ICT Roadmap to drive synergies which would expand opportunities for disruptive technology innovation and global competitiveness.

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