Business
Call, Data Costs To Double As FG Invokes New Telecom Tax
Call and data tariffs may increase by as much as 100 per cent if plan by the federal government to hike consumption tax on telecom services scales through, Daily Trust can report.
Daily Trust reports that the federal government had recently disclosed plan to implement a 5 percent excise duty tax on telecoms services, increasing the total consumption tax on telecom services to 12.5 percent.
The new tax regime, according to industry sources, will not only affect subscribers but also add tax burden on the telcos which would translate into rise in tariffs.
If the 5 per cent increment is eventually implemented, industry experts say, Nigerians will now be paying as much as N40 per minute call, up from about N20. And data tariffs could also go up to about N2,500 per gigabyte.
The finance minister, who unveiled the plan at a stakeholders’ forum on the implementation of excise duty on telecommunications services in Nigeria organized by the Nigerian Communications Commission (NCC), said the 5 percent excise duty was in the Finance Act, 2020.
She said the accrued taxes would be remitted on monthly basis, on or before 21st of every month. The move, according to the minister, was part of effort by the government to boost non-oil revenue in the face of dwindling income, especially from the oil sector.
The proposal has, however, set Minister of Finance, Budget and National Planning, Zainab Ahmed, and the Minister of Communication and Digital Economy, Prof Isa Ali Pantami, on collision course.
While the Ministry of Finance cites a presidential approval to apply the new excise on telecommunication services, as provided by the Finance Act, the Ministry of Communication and Digital Economy is kicking on the ground that the new tax would be harmful to the sector and to subscribers.
Telecom stakeholders, experts oppose
Also, Nigerian telecommunication consumers, under the aegis of the National Association of Telecoms Subscribers, have described the move by the federal government to increase the total consumption tax on telecom services, which include GSM to 12.5 percent as “irresponsible and ill-timed”.
According to the association, Nigerians are already suffering as a result of harsh economic conditions and another tax on telecom subscribers will further impoverish many especially as telecom services are essential to everyone.
READ ALSO:
- Shock, Mixed Feelings As UAE Tightens Visa Rules For Nigerians
- US, Bagudu’s Brother Near Deal on Kebbi Governor’s Money Laundering Case
- APC Denounces ‘Vote-manufacturing’, Unveils Omo-Agege’s Running Mate
President of Association of Licensed Telecom Operators of Nigeria (ALTON) Gbenga Adebayo, described the excise duty as unusual, saying that it will increase the burden on the telecom operators as they already have 39 other taxes that have been imposed on them.
Adebayo who spoke virtually at a forum last week stated that his association may not absorb the tax on behalf of the subscribers, noting that they will transfer the burden to the subscribers to pay higher prices for services.
The Executive Secretary of the Association of Telecommunications Companies of Nigeria (ATCON) Ajibola Olude also kicked against the proposed tax, saying that it does not comply with the principles of taxation which include fairness.
The implementation of the excise duty according to him will cause job loss; stressing that the proposed excise duty on all telecommunications companies is badly intended, he said.
Also the President of National Association of Telecoms Subscribers (NATCOMS), Chief Adeolu Ogunbanjo, lamented that sector is already heavily taxed with payment made on every recharge card coupled with the existing 7.5 percent VAT.
According to him, the new excise duty will cumulatively hike the tax to 12.5% including VAT, which will be a huge burden on Nigerians. The move, he said, is “insensitive and unpalatable”.
Ogunbanjo urged government to reverse its decision to increase the tax in the interest of the people as the telecom industry is the last hope of the common man and should not be destroyed.
A telecom consumer in Lagos, Mr. Lawrence Abi said that the masses may not feel the impact of the excise duty since it’s not on edible commodity.
He said, “As essential as communication is , how many people know how much they are charged per minute? More so, we have paid higher amount at the inception of the GSM. So it will not have effect on goods and services. We also have alternative to call such as WhatsApp call.
“By and large it’s better than additional loans for consumption,” he said.
However, the Nigerian Communications Commission (NCC) said there was no any immediate plan by operators to increase tariffs.
The Minister for Communications and Digital Economy had, last Monday, expressed dissatisfaction with efforts by the federal government to introduce excise duty on telecommunication services.
Pantami in his address at the maiden edition of the Nigerian Telecommunications Indigenous Content EXPO (NTICE) themed ‘Stimulating the development of Indigenous Content through innovation and commercialization’ holding in Lagos stressed the need for government and stakeholders to continue to support the sector, and not unnecessarily put burden on it.
“The Minister of Communications and Digital Economy is not satisfied with any effort to introduce excise duty on Telecommunications. When VAT was increased to 7.5percent, I was not consulted, I only heard the announcement and I think there is something questionable and I am glad that we are on the same page with our national assembly members. They too have not been consulted despite the fact that they are part of the committee.
“Beyond, making our position known, we will go behind the scene and go against any policy that will destroy the digital economy sector. This is a sector we cherish so much and we are ready to go to any extent, legitimately and legally to defend its interest.” he said.
When contacted yesterday, Pantami maintained his lack of support for the planned excise duty hike.
When asked to comment on why Pantami is not in support of the new tax hike, his spokesperson Uwa Suleiman directed Daily Trust reporter to contact the NCC for clarification on her principal’s statement on his lack of support for the excise duty on telecom services.
But when contacted, the NCC’s Director of Public Affairs, Mr Reuben Mouka said the “Minister had made his position public (at the Lagos event). He didn’t hide it.”
Why communication minister opposed proposed excise
A senior official of the ministry said Pantami is against the hike in excise duty on telecom services because it could drive away investors and increase hardship among Nigerian as telecoms might increase data and calls tariffs as a result of the tax.
READ ALSO:
- Suspected gunrunners arrested on Nigeria-Cameroon border
- 90-year-old held over drug supply to bandits
- Subsidy: FAAC demands petrol consumption records from NNPC
- Just in: Buhari’s nephew quits APC after losing re-election ticket
In addition, Daily Trust gathered that the minister was bitter due to lack of proper engagement by the finance ministry on the issue.
“Yes, there was a letter from the Ministry of Finance informing us about the plan to commence the collection of the excise duty, but the minister replied to let them know we were not consulted and also emphasised how this law will increase the hardship of our citizens and is detrimental to the growth of the Digital Economy sector,” he said.
According to him, there was no proper stakeholder engagement by the finance ministry, including public hearing on the proposed provisions to enable all stakeholder provide inputs.
“We were not informed and the relevant committees in the National Assembly were also not informed,” he added. Another source at the ministry said the minister had promised the telcos that he would meet with President Muhammadu Buhari on the issue.
One of the telecom operators’ official told one of our reporters that no date had been communicated to them as the commencement date of the new excise duty.
“But you they may take us by surprise and start this month; we never can say”, the top telcos official who begged not to be named, told our reporter.
We’re consulting on implementation – Finance ministry
However, a spokesperson for the Minister of Finance said the ministry was in consultation with stakeholders on collection of the excise levies.
Responding to Daily Trust’s enquiry yesterday, the spokesman, Dr Yunusa Tanko, said the new tax regime said the excise collection ought to be with effect from June 1, 2022, which was the end of a three month moratorium provided by the ministry.
He said the minister had, “vide Circular dated 1st March, 2022 informed the Nigeria Customs Service and other Heads of Government Ministries, Departments and Agencies (MDAs), including the Federal Ministry of Communication & Digital economy on Mr. President’s approval of the implementation of the 5% excise duty on telecommunication services with effect from 1st June, 2022. The circular provided a ninety (90) day moratorium with effect from 1st March, 2022 before the implementation of the excise tax”.
Dr Tanko said the new provison is yet to be implemented due to “the need to ensure reasonable transition period before the implementation of the new tax, as well as provide clarity to all stakeholders on implementation modalities”.
He reiterated that the excise was hinged on the provisions of Finance Act, 2020 which “introduced “Telecommunication Services” provided in Nigeria to be liable to excise duty under Section 21 (2) of the Customs and Excise Tariff Etc. (Consolidation) Act, CAP. C49, LFN 2004. It, therefore, means that all stakeholders have by that singular provision aware of the Act”.
He said the ministry was working with stakeholders including Manufacturers Association of Nigeria (MAN) and Association of Telecom Operators of Nigeria (ALTON) on modalities for implementation of the excise duty.
![]()
Auto
Uwatse Joins Ade-Ojo, Maduka in Exclusive League of Nigeria Auto Legends
Uwatse Joins Ade-Ojo, Maduka in Exclusive League of Nigeria Auto Legends
In a rare recognition of industry leadership and enduring contributions to Nigeria’s automotive sector, the Nigeria Auto Journalists Association (NAJA) has named Chief Benson Uwatse, Chairman of Weststar Associates Limited, recipient of the prestigious Nigeria Auto Legend Award at the 19th Nigeria Auto Industry Awards.
Uwatse’s emergence places him in an exclusive league of automotive icons, making him the third industry heavyweight to receive the distinction after Chief Michael Ade-Ojo, Chairman of Toyota Nigeria Limited, and Dr Cosmas Maduka, President and Chief Executive Officer of Coscharis Group.
The recognition celebrates Uwatse’s more than three decades of involvement in the Nigerian automotive industry, particularly his role in advancing the Mercedes-Benz brand and strengthening its presence in the country’s premium and luxury vehicle market.
The recognition underscores Uwatse’s longstanding involvement in the Nigerian automotive sector and his contributions to the development and representation of the globally renowned Mercedes-Benz brand in the country.
As Chairman of Weststar Associates Limited, the authorised general distributor of Mercedes-Benz in Nigeria, Uwatse occupies a strategic position in the country’s premium and luxury automobile market.
Weststar is responsible for coordinating Mercedes-Benz’s business activities in Nigeria, covering passenger cars, commercial vehicles, trucks and buses, alongside dealer support, marketing, training, genuine spare parts supply, warranties and after-sales services.
The company officially commenced operations in February 2008, assuming responsibility for Mercedes-Benz sales and after-sales operations in Nigeria. Its distribution network and authorised dealerships provide sales and servicing support across different parts of the country.
Uwatse’s association with the Mercedes-Benz brand spans more than three decades, giving him considerable experience in the Nigerian automotive business, particularly in premium vehicle distribution, customer relations and brand development.
His involvement in the business has also included leadership responsibilities in the Mercedes-Benz dealership network, specifically as Managing Director of MB Automobile Services Limited, one of the authorised Mercedes-Benz dealers in Nigeria.
The Nigeria Auto Legend Award is particularly significant because it recognises individuals whose contributions extend beyond routine business operations to the development, growth and advancement of the nation’s automotive industry.
Chief Ade.Ojo, the founder of Elizade Nigeria Limited and Chairman of Toyota Nigeria Limited, was the first recipient of the special industry recognition in 2017, in acknowledgement of his decades of investment, enterprise and contributions to Nigeria’s automobile business.
Dr Maduka, who transformed Coscharis from a modest automobile trading venture into one of Nigeria’s leading indigenous conglomerates, also earned recognition for his remarkable contributions to the automotive sector. Under his leadership, Coscharis Motors secured distribution franchises for several globally recognised automobile brands, including BMW, MINI, Rolls-Royce and Ford.
Uwatse’s emergence as the third recipient further reinforces NAJA’s commitment to celebrating individuals whose leadership, enterprise and industry experience have contributed significantly to the evolution of Nigeria’s automotive landscape.
The 19th edition of the Nigeria Auto Industry Awards, organised by NAJA, is scheduled to hold on Thursday, December 3, 2026, at the Civic Centre, Victoria Island, Lagos.
The annual awards bring together automobile manufacturers, distributors, dealers, policymakers, regulators, industry professionals and other stakeholders to celebrate outstanding achievements and recognise excellence across Nigeria’s automotive and transportation sectors.
![]()
Insurance
Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention
Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention
Continental Reinsurance Holdings Limited has strengthened its investment proposition ahead of its proposed listing on the Botswana Stock Exchange (BSE), following regulatory approval of its Supplementary Prospectus, which introduces significant changes to its shareholding structure and incorporates improved half-year financial results.
The development is expected to boost investor confidence in the planned Initial Public Offering (IPO), particularly following the decision by promoter-controlled existing shareholder vehicle, ACA Cornerstone Limited, to retain its entire stake in the company rather than exit as initially contemplated.
Under the revised offer structure, ACA Cornerstone will retain all 253,951,336 shares it currently holds, representing approximately 11.9 per cent of Continental Reinsurance Holdings’ enlarged issued share capital after completion of the offer, assuming all contemplated new shares are issued.
The shareholder has also provided a formal undertaking, subject to specified conditions, to retain the shares for a minimum of five years following the company’s listing.
The commitment represents a significant shift from the original offer structure and signals continued confidence in the company’s business prospects, while strengthening alignment between existing and prospective shareholders.
Commenting on the development, Group Managing Director of Continental Reinsurance Holdings, Mutsunge Lawrence Nazare, said the revised offer reflected the company’s willingness to engage with investors and address their concerns.
“We have engaged closely with investors and taken on board their feedback. The revised offer reflects that engagement and reinforces our long-term investment proposition,” Nazare said.
He explained that ACA Cornerstone’s decision to remain invested, alongside its five-year share retention undertaking, demonstrated its continued commitment to the business and its future.
READ ALSO:
- Iran Unveils ‘We Will Kill Trump’ Billboard in Tehran Amid Rising Tensions With US
- Tinubu’s Re-election: Osun APC Leaders Reject Oyebamiji-Led Campaign Council
- Tragedy: Spanish Footballer Jesús de Miguel Dies at 30 After On-Field Collision
According to him, the development would strengthen the relationship between existing and incoming shareholders as the company prepares to enter the Botswana Stock Exchange.
Beyond the revised shareholding arrangement, the Supplementary Prospectus incorporates the Group’s audit-reviewed interim financial results for the six months ended June 30, 2026, showing a significant improvement in profitability and underwriting performance.
The company’s profit before tax surged by approximately 352 per cent to P79.2 million, compared with P17.5 million recorded during the corresponding period of 2025.
Similarly, profit after tax increased by approximately 902 per cent, rising to P64.4 million from P6.4 million in the previous year’s comparable period.
Insurance revenue also recorded growth, increasing by 2.4 per cent to P1.213 billion, reflecting continued business activity and revenue generation across the Group’s operations.
The company also reported a notable improvement in its underwriting performance, with its underwriting margin rising to 6.8 per cent from 4.2 per cent in the corresponding period of the previous year.
The improved margin points to stronger underwriting results during the period, complementing the significant growth recorded in the Group’s overall profitability.
As of June 30, 2026, Continental Reinsurance Holdings reported total assets of P3.27 billion and shareholders’ equity of P1.43 billion, providing further insight into its financial position ahead of the proposed public listing.
Despite the changes to the offer structure and the improved financial performance, the company said its offer price would remain unchanged at P1.00 per share.
Continental Reinsurance Holdings is maintaining its target of raising USD30 million in new growth capital through the offer for subscription. The funds are expected to support the Group’s growth ambitions and strengthen its capacity to pursue opportunities within the reinsurance market.
The Public Offer will remain open until 15:30 on Friday, November 20, 2026, while the company’s listing on the Main Board of the Botswana Stock Exchange is scheduled for December 10, 2026, subject to the fulfilment of applicable listing requirements.
The company has also made provisions for investors who submitted applications before the publication of the Supplementary Prospectus to reconsider their investment decisions in light of the revised offer.
Such investors may maintain, amend or withdraw their existing applications. However, the deadline for submitting amendment or withdrawal notices is November 11, 2026.
Applications for which no amendment or withdrawal notice is received by the stipulated deadline will remain valid and unchanged.
The Supplementary Prospectus is expected to be read alongside the original Prospectus dated August 4, 2026. Both documents are available on the company’s website, www.continental-re.com, as well as through its sponsor, Motswedi Securities.
With the retention of a major existing shareholder, a five-year commitment against an early exit, and substantially improved interim financial results, Continental Reinsurance Holdings is seeking to reinforce investor confidence as it moves closer to its planned entry into the Botswana capital market.
Continental Reinsurance Strengthens IPO Appeal As Major Shareholder Commits To Five-Year Stake Retention
Business
EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks
EFCC, NMDPRA Raid Chinese-Linked Illegal Refinery in Ogun, Uncover 90,000-Litre Underground Tanks
Officials of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Economic and Financial Crimes Commission (EFCC) have uncovered an illegal refinery allegedly linked to Chinese nationals at Ogere-Remo, Ikenne Local Government Area of Ogun State.
The facility, which occupies more than three hectares of land, was raided on Wednesday following intelligence gathered by the EFCC, revealing what investigators described as a well-fenced but unauthorised crude oil processing operation.
During the operation, the joint team discovered underground tanks suspected to have been used for heating and processing sludge oil, a waste product from refining, as well as substances believed to be Automotive Gas Oil (AGO), commonly known as diesel.
NMDPRA officials subsequently sealed the facility pending further investigation.
Speaking during the inspection, the Ogun State Coordinator of NMDPRA, Dr Atilola Akinyemi, said the facility was operating without approval or a licence from any recognised regulatory authority.
He disclosed that an underground storage installation behind the facility had an estimated capacity of more than 90,000 litres, alongside underground heating systems, water hydrants for cooling, locally fabricated tanks and silos designed for separating processed substances.
Describing the operation as illegal, Akinyemi said the operators appeared to possess technical expertise but had deliberately designed the facility to evade regulatory oversight.
“This facility you see here is very crude and completely illegal. This is not a refinery by any standard. It does not have a permit from any regulatory authority and its operations are unknown to the relevant authorities.
“They appear to be technically skilled people who have deliberately designed this facility to circumvent government regulations. When we examine their final product, it may look like diesel to the average person, but we cannot classify it as diesel until laboratory tests have been conducted,” he said.
The EFCC Zonal Director, Lagos Zonal Directorate 2, Bawa Usman Kaltungo, said the discovery pointed to a well-established illegal refining operation involving several stages of processing sludge into products resembling diesel.
“What we have seen here is an illegal refinery with a complete setup, featuring all the processes through which sludge passes before being converted into what is commonly referred to as diesel. Judging by the nature of this facility, it has been operating for years,” Kaltungo said.
He raised concerns over the growing involvement of foreign nationals in illegal industrial activities around the Ogere axis, recalling that 14 Chinese nationals were arrested in the area a week earlier over alleged illegal lithium processing.
According to him, investigations into the earlier operation revealed immigration irregularities, with some of the suspects allegedly lacking passports, while others were found to have overstayed their visas by about three months.
“Some of them had passports, while others did not. Even among those who had passports, we discovered that some of their visas had expired about three months earlier. Yet, there were still individuals operating there without passports,” he said.
Kaltungo vowed that those behind the illegal refinery would be identified and brought to justice.
Also speaking, the Director of the EFCC’s Department of Proceeds of Crime Management, Mr Gbolahan Latona, condemned the activities, warning that illegal operations of this nature undermine legitimate investments in Nigeria’s petroleum industry.
“Imagine allowing saboteurs like these to operate freely and undermine the efforts of legitimate investors like Dangote Refinery. Ultimately, it is Nigerians who will suffer,” Latona said.
The discovery comes amid renewed efforts by regulatory and law enforcement agencies to clamp down on illegal industrial operations, economic sabotage and activities capable of undermining investments in Nigeria’s oil and gas sector.
![]()
-
metro3 days agoFG’s N50,000 Relief: OPay Details Eligibility Check Process, Issues Strong Warning Against Scams
-
metro3 days agoBandits Demand Over ₦100m Ransom for 15 Abducted Islamiya Students in Niger
-
metro3 days agoTears In Ebonyi Community As Newlyweds, Groom’s Mother, Seven Others Perish In Crash
-
International3 days agoAustralia Under Pressure To Scrap $368bn US-UK Nuclear Submarine Deal As Inquiry Warns Of China War
-
Politics3 days agoDSS Denies Plot to Disrupt ADC Rally, Orders Probe into Atiku’s Allegations
-
metro3 days ago‘I Went to My Pastor for Deliverance, Ended Up in Bed With Him’ – Lady Recounts Encounter
-
International3 days agoAbdul El-Sayed Makes History, Defeats Republican Rival To Become First Muslim US Senator
-
International3 days agoMusk Breaks Silence After $458M Gamble Backfires in Historic Democratic Sweep
