In a bid to reposition the country’s telecommunication sector towards improved performance, the Nigerian Communications Commission (NCC) has mandated telecommunication providers to pay 2.5 percent of their yearly income as operational levy.

The operating tax will be charged on the yearly revenue of both network and non-network providers.

The telecommunications regulator says it has held a public discussion into the review of the draft Annual Operating Levy (AOL) and it has agreed “to look into some of the issues raised by operators, in order to develop a sound regulatory framework.”

Telecom operators in the country (Airtel, Etisalat, Glo, MTN and VisaFone) who participated in the public inquiry have express concern over the huge interconnectivity debt that they must now contend with and have called on the NCC to reconsider the new levy.

However, the commission says it will not reduce the 2.5 percent charge on Annual Operating Levy because it is illogical.

“I think the issue of decreasing the percentage of the levy will not be logical for now,” Executive Vice Chairman of the commission, Eugene Juwah said.

“It is the money that sustains the regulators and the money is used to execute projects that the regulators do through the forum (Universal Service Provider Forum),” he said.

“NCC doesn’t get a kobo (a penny) from government.’’

He explained that the regulations were aimed at creating and providing effective and efficient administration of annual operating levy regime that would specify the mode and method of assessment.

Issues the NCC is seeking to address through the new regulation include non- payment of operating levies, delayed remittances, non-compliance to set ruled and failure to submit financial statement to the commission as required by law.

The draft regulation also seeks to impose sanctions and penalties on defaulters.

“The draft AOL regulations are aimed at creating an effective administration of the operating levy regime.”

“They will also remove any ambiguity in respect of the AOL and other fees and charges being borne by operators,” Juwah said.

Juwah added that  the regulations would complement the commission’s Act of 2013 and various licences it issued.

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