Telecom service disruption looms as states threaten base station shutdown over unpaid taxes

Telecom service disruption looms as states threaten base station shutdown over unpaid taxes

Fear of an impending blackout of telecommunication services in certain regions has grown as state governments in Nigeria have sealed or threatened to close down Base Station Transmission (BTS) sites due to unpaid taxes by telecom operators.

These actions have raised concerns among industry bodies and operators, warning of potential service disruptions and deteriorating quality of service.

Over the years, telecom operators have unsuccessfully attempted to dissuade state governments from imposing extra taxes and levies on their operations. They argue that such measures increase the cost of doing business, indirectly affecting service quality and potentially leading to increased costs for subscribers.

Kogi State stands out as one of the states that has been taxing telcos operating within its borders for the past two years. They have previously sealed base station sites for non-payment of telecoms levies by service providers. The situation is not unique to Kogi State, as the government of Oyo State recently announced the closure of telecom masts and premises belonging to commercial banks in Ibadan due to non-payment of taxes. Similarly, the Osun State government has contracted a private consulting firm to conduct a telecoms infrastructure installation audit, with an expected revenue of N500 million for the state.

In response to these developments, the Association of Licensed Telecom Operators of Nigeria (ALTON) has urgently called on President Bola Tinubu to intervene. ALTON emphasizes that the indiscriminate shutting down of telco facilities could disrupt services and severely impact the quality of communication. The association asserts that telecom infrastructure is a critical national asset that must be protected, highlighting that sealing telecom masts and other facilities as a punitive measure to enforce tax collection would hinder the flow of voice and data communication.

READ ALSO: Oyo State shuts down banks, Telecoms over unpaid dues

Engr. Gbenga Adebayo, Chairman of ALTON, criticized the indiscriminate imposition of multiple taxes and levies on telecom operators, viewing it as a hindrance to the sector’s growth despite its significant contribution to the national Gross Domestic Product (GDP).

He urged governments at all levels to collaborate in protecting telecom infrastructure, which plays a vital role in job creation, the digital economy, and financial inclusion.

Adebayo emphasized that base stations are crucial hardware components that should not be tampered with, as they facilitate rapid data and voice transmission, enhancing effective communication and financial transactions across all sectors of the Nigerian economy. ALTON appealed for President Tinubu’s intervention and advocated for the formulation and implementation of a policy safeguarding telecoms infrastructure against theft, destruction, and undue interference from multiple government agencies.

Adebayo argued that the ongoing audit of telco infrastructure in Osun State, along with the imposition of additional levies on operators, amounts to double taxation. This further burdens the industry already grappling with the payment of 46 existing telecom taxes across the country. The challenges faced by telecom operators in Kogi State, where base stations have been sealed without considering the impact on service quality, are also highlighted by Adebayo.

ALTON pleads with the federal government and the Nigerian Communications Commission (NCC) to intervene and prevent state governments from arbitrarily closing BTS sites and other actions harmful to the telecoms sector’s growth. Adebayo warns that if left unchecked, the impunity displayed by Kogi, Oyo, and Osun states may spread to other states, resulting in a decline in service quality.

Additionally, Adebayo emphasizes the need to designate telecom infrastructure as a critical national asset, appealing for an end to the theft, vandalism, and destruction of such infrastructure by miscreants and construction companies. Considering the high acquisition and installation costs of telecom infrastructure, he stresses the necessity for caution during road construction to prevent damage that could impair voice and data services.

The telecom industry hopes for swift government intervention to protect critical telecom infrastructure, maintain service continuity, and foster a conducive environment for sustained growth and development.