Centre for Information Technology and Development (CITAD) has said the proposed increase in Telecommunications services excise duty from the current 5.5 percent to 12.5 percent would jeopardise many Nigerians.
The Director of the Centre, Prof. Yahuza ZakariYa’u, made this known on Wednesday at a Press conference held at the Centre in Kano.
He said that as made known by the Minister of Finance Mrs Zainab Shamsuna in the past two weeks, the intention of the ministry to increase excise duty on telecommunication services.
According to the Director, “The act will not only create more hardship to Nigerians, but will also fundamentally undermine the economic recovery of the country.
“The effect of the proposed increase is to make calls and data more costly in the context in which already Nigerans are paying heavily for.
“Nigeria is one of the countries with low affordability index as calculated by the Alliance for Affordable Internet and currently only less than 45% of Nigerians can access and afford to use full spectrum of telecommunication services.”
He however stressed that the increment would deter the attainment of the country’s goal to attain digital economic transformation agenda, as endorsed by the President.
However, Prof. ZakariYa’u, highlighted that Nigeria needed to increase broadband penetration to 95% by 2030 and to achieve 95% digital literacy by 2025.
Also, he stressed that the act of making data more costly, would undermine the lofty goals as people cannot afford telecommunication services.
“Telecommunication companies will also lack incentives to invest more and expand their infrastructure, a condition that is needed to achieve the 95% broadband penetration.
“Once these goals cannot be realized, the objectives of the digital transformation agenda will fail.” The Director cautioned.
He therefore appealed to President Muhammadu Buhari, to jettison the proposed increase.
CITAD further called on the President to set up the process of developing a National Policy on Community Networks, so that communities could address issues on their community infrastructure.
