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Chinenye Anuforo
The Federal Government has criticised state governments’ disregard of the telecom Right of Way (RoW) charge agreement reached by the National Economic Council (NEC).
According to a press statement by the Ministry of Communication and Digital Economy, signed by the minister, Isa Ali Pantami, the ministry received with dismay the decision of some states of the federation to increase RoW charges, in disregard of the resolutions reached by the NEC.
In 2013, the NEC set up a committee comprising governors and ministers to review the issues of multiple taxation in the telecommunications industry in Nigeria and its impact. The committee, after extensive and wide-ranging consultations, resolved to harmonise taxes applicable to broadband related activities and streamline the taxation management processes across the federation. Specifically, to deepen broadband penetration for the social and economic development of the country, the committee agreed to the uniform RoW charge of N145.00 per linear metre of fibre.
Pantami had also in October 2019 written to all the state governors, drawing their attention to the resolutions and soliciting their support and collaboration towards the realisation of the National Digital Economy by fast-tracking the deployment of broadband infrastructure for the provision of affordable Internet service to underserved and unserved areas.
“It is true that the digital economy today is strategically dominating the world economy. Oxford Economics puts the current value of the digital economy at $11.5 trillion, which is about 16 per cent of the world economy. Furthermore, the World Economic Forum revealed that 60 per ceny of the global economy is expected to be digitised by 2022. With the renaming of the Federal Ministry of Communications to Federal Ministry of Communications and Digital Economy, as well as the unveiling of the National Digital Economy Policy and Strategy by Mr. President, we are on the path of realising the potentials of the digital economy,” Pantami said in the statement.
“It is, however, disheartening to hear that some states have decided to disregard these resolutions and have, in some cases, increased the RoW charges by over 1,200 per cent. This will no doubt impact negatively on the efforts being made by the Federal Government,” he said.
It is established that there was a strong correlation between a country’s broadband penetration and its GDP, with an ITU study on Africa indicating that 10 per cent broadband penetration would result in an increase of 2.5 per cent of GDP per capita.
The minister, therefore, called on all governors, especially those that have made public their decisions to increase RoW charges, to reconsider these decisions in the interest of Nigerians as well as for the socio-economic growth and development of the country.
