Nigeria Plans Tax Incentives for Telecom Companies
Nigerian government has planned to reduce the taxes for telecom companies to boost growth and help the companies in improving their infrastructure across the country. The tax cut will promote investment in the telecom infrastructure sector.
Nigerian telecom sector has been growing at fast pace but the infrastructure investments have not picked up in the sector. Due to massive increase in the number of subscribers, the quality of telecom services has faced a decline in the country. Few months back, Nigerian regulatory had fined the telecom majors for providing low quality services to clients.
Communications Technology Minister Omobola Johnson said that the government is committed to make the investments in the sector lucrative for the operators. She added that 70 percent of the investment in telecom infrastructure sector goes for different types of taxes. The government plans to bring this down to a reasonable level to spur growth.
The taxes are high, power supply is unreliable and development of infrastructure needs lot of investment. The telecom majors have been shying away from spending money on development of the networks in the region.
MTN Group and Bharti Airtel are two major players in the Nigerian telecom market. The regional governments charge heavy fee from telecom companies.