Editorial

No To Proposed Telecoms Tariff Hike

Published

3 years ago

August 22, 2022

Telecommunications consumers in Nigeria may need to constrict their belts in the days ahead as the Federal Government has completed plans to impose a five per cent excise duty on all telecommunications services ranging from calls, SMS, and data services.
The Minister of Finance, Budget, and National Planning, Mrs Zainab Ahmed, disclosed this at a stakeholders’ forum on implementation of excise duty on telecommunications services in Nigeria in Abuja. The event was organised by the Nigerian Communications Commission (NCC). Since the disclosure, Zainab has been pressing that the scheme must be implemented as proposed despite opposition by stakeholders.
According to reports, the five per cent will be added to the already existing 7.5 per cent Value Added Tax (VAT) on telecommunications services. Zainab said the five per cent excise duty is a provision in the Finance Act 2020 but was not carried out. She attributed the delay of its implementation to government’s engagement with stakeholders. The proposed tax, if enforced, will increase impost in the sector to a total of 12.5 per cent.
Like many other countries around the world, Nigeria’s economy has been hit by the COVID-19 pandemic, insecurity and the recent ongoing Russia-Ukraine war. A recession is imminent, food shortages are looming, chronic oil theft continues to compound the problem, leaving the mono economy huffing and puffing.
The 36 state governors have chimed the alarm that they may not be able to pay workers’ salaries in the coming months because of the fast depleting income in the federation accounts. Following these concerns and more, the Finance Minister has seen telecommunications as a sub-sector with the magic wand to save the collapsing economy. The Federal Government must realise that Nigeria’s fiscal challenge is not generaion but reckless expenditure.
The present economic realities in the country render the introduction of such taxes unrealistic and insensitive. The Finance Minister should pay very close attention to the comments of the Minister of Communications and Digital Economy, Prof Isa Pantami, who described the proposed tax as “ill-timed”. Pantami deserves commendation for being on the side of the masses who are suffering the worst economic policies in the history of the country.
At the maiden edition of the Nigerian Telecommunications Indigenous Content Expo (NTICE) organised by the NCC in Lagos, Pantami said he had not been informed officially about the proposed excise duty and promised to challenge the decision. This is an indication that President Muhammadu Buhari’s government is working at cross purposes. Although the government will make about N165 billion annually from the tax regime, the decision will impoverish millions of Nigerians.
Excise taxes are usually imposed to discourage the consumption of certain goods such as alcohol and tobacco. In a digitized world, increased taxes on telecommunication services like calls and data will inhibit social interaction and the provision of goods and services. This will adversely affect learning as many institutions now conduct lectures through online channels. It will also limit access to information and participation.
Our standpoint on the mooted tax is consistent with Pantami’s perspective. We reject it because it is insensitive and coming at the wrong time. The scheme would negatively impact the sector. Having observed the immense contribution of the telecom industry to the economy, we urge the Federal Government to rescind the decision forthwith. Such imposition would further aggravate the agony of the Nigerian masses who have already been shoved into adversity and intense poverty.
Similarly, major stakeholders in the sector are kicking against the initiative. The Association of Licensed Telecoms Operators of Nigeria (ALTON), Association of Telecommunications Companies of Nigeria (ATCON) and National Association of Telecoms Subscribers (NATCOMS) are together indisposed to the plan, describing it as anti-people, provocative, strange, insensitive and irresponsible.
Furthermore, the suggested new tax regime is a bizarre idea and a unique development as it is being introduced amid 39 disparate taxes payable by the telecom operators in the country. Certainly, this new tax burden would be passed on to subscribers. Globally, excise duty is charged on goods and products. We are thunderstruck and at a loss as to why this is on services. That is not the case with many other countries.
Rather than saddle Nigerians with manifold taxes, the Federal Government should activate other sources to address the current economic challenges, alarming unemployment, plummeting exchange rate and financial hardship on the citizens. The economy is at its lowest ebb as the purchasing power of Nigerians has dwindled in the face of galloping inflation. Basic domestic commodities, power, energy, and transportation are unreachable for the average Nigerian.
If the five per cent duty tax is put into effect, it is conjectured that it could cost several jobs and lead to a crucial contraction in the sector. The ripple effect could be ill-fated to Nigerians who are burdened with numerous taxations. The government should discontinue the measure, dialogue with stakeholders and find long term solutions to revenue shortfalls in the country, not by frequent resort to desperate quick-fix solutions.
Granted the government needs money, but taxing the telecom sector should not be the only pathway it always seeks to explore. The sector already contributes a lot to the Nigerian economy, and adding more taxes could impact its growth negatively. It will virtually raise tariffs with no direct advantages for either the subscribers or operators. Perhaps, it is time the government began to contemplate taxing other sectors of the economy that are not contributing to national development.

Editorial

Addressing The State Of Roads In PH

Published

1 week ago

October 6, 2025

The Tide

The current state of roads in Port Harcourt is nothing short of deplorable. Each passing day, commuters and residents are confronted with worsening conditions that threaten both livelihoods and safety. It is evident that the past six months of administrative inactivity left the city’s infrastructure unattended, a neglect that has now returned to haunt the state capital.

When the former sole administrator was in charge, the promise of good roads appeared to have been placed on hold. Little or nothing was done to repair or rehabilitate the crumbling road network. Port Harcourt residents bore the brunt of this neglect, enduring long hours in traffic, damaged vehicles, and endless frustration.

Now that Governor Siminalayi Fubara has returned to the saddle, urgent steps must be taken to mobilise contractors back to project sites. Abandoned road construction projects must not be allowed to wither into oblivion. The governor’s return should mark a revival of the momentum once witnessed when roads were given prominence in the development agenda.

But the issue is not simply about new construction. Maintenance remains an essential component of sustainable infrastructure. The Road Maintenance Agency, established by a previous administration, was designed as an interventionist outfit to address minor potholes before they degenerated into major hazards. Today, residents are left to wonder if that agency still exists. If it has become comatose, then the time has come to revive it.

The importance of roads in economic growth cannot be overstated. Smooth and accessible roads facilitate movement, reduce transport costs, and open up communities for trade. In a commercial hub like Port Harcourt, where businesses thrive on logistics, the lack of functional roadways translates directly into stifled productivity.

Equally troubling is the security dimension. Bad roads provide fertile ground for criminals to operate. Robbers and kidnappers exploit traffic gridlocks and broken stretches of road to target unsuspecting motorists. Repairing these roads is not just a matter of convenience but one of safety and protection of lives.

It is worth recalling that before the declaration of the emergency rule, Rivers State was experiencing a boom in road construction. That momentum, however, was abruptly truncated in the past six months. Roads that should have been nearing completion are now left in ruins, with residents left at the mercy of potholes and impassable stretches.

Governor Fubara should not be discouraged by the distractions of the emergency rule. He must, instead, pick up from where he stopped, breathing fresh life into stalled projects. More than ever, his resolve is needed to restore confidence in governance and demonstrate that promises made will indeed be promises kept.

Sadly, most of the roads today are in worse condition than they were before the emergency declaration. The problem is compounded by the peculiar geography of Rivers State. With Port Harcourt being a city that experiences heavy rainfall, flooding frequently worsens the challenges on the roads. Poor drainage leaves highways waterlogged, further eroding asphalt and inconveniencing commuters.

Specific areas demand urgent attention. The Ikwerre and NTA Roads, Elioparanwo Road, Rukpokwu Roundabout, Rumuokwuta Road and Airport Road are crying out for repairs. The potholes on these roads not only slow movement but also damage vehicles and expose pedestrians to danger. These black spots deserve priority action before they become completely impassable.

The identity of Port Harcourt as the “Garden City” is being eroded by these infrastructural failures. A city once renowned for its beauty risks descending into the unflattering tag of a “Garbage City”. Sadly, several abandoned construction sites have degenerated into refuse dumps. The St John’s/Ogbogoro Road stands as a shameful example of this neglect.

To make matters worse, residents have begun encroaching on areas designated for the Ring Road project. Such encroachments are a direct sabotage of development efforts. The authorities must rise to the occasion by protecting public infrastructure from illegal occupation and ensuring that earmarked sites serve their original purpose.

What the state requires now is a dual approach: prompt utilisation of earmarked construction areas and the simultaneous rehabilitation of existing roads riddled with potholes. Fubara must ensure that while new road projects are pursued, old roads do not completely collapse. Both efforts can and must go hand in hand.

Rivers people also deserve clarity on the status of the Road Maintenance Agency. If defunct, it should be reactivated without delay. Neglecting small potholes only leads to bigger, costlier problems in future. In line with his promise upon his return from suspension that “no loss is irretrievable”, the governor must retrieve every abandoned project and restore hope to weary residents.

Roads in Port Harcourt are the arteries through which the city breathes. Leaving them broken is to suffocate its economy, endanger its people, and tarnish its reputation. What is now required is decisive action—swift, consistent, and sustained.

Editorial

Charge Before New Rivers Council Helmsmen

Published

2 weeks ago

September 29, 2025

The Tide

On the 30th of August, Rivers people trooped out to participate in local government elections conducted across the state. These elections, which produced new chairmen and councillors for the 23 local government areas (LGAs), were organised by the Rivers State Independent Electoral Commission (RSIEC). The exercise has ushered in a new crop of grassroots leaders whose shoulders now bear the responsibility of steering the affairs of their respective councils. With the polls concluded and winners duly announced, the time has come for the newly elected officials to roll up their sleeves and begin the hard work of governance.

According to the results declared by RSIEC, the All Progressives Congress (APC) secured a dominant lead, winning chairmanship seats in 20 of the 23 local government councils, while the Peoples Democratic Party (PDP) clinched the remaining three. This outcome not only reflects the current political dynamics in the state but also places a significant weight of expectation on the shoulders of the APC-led councils to justify the confidence reposed in them by the electorate. It is imperative that political rhetoric now gives way to tangible development, especially at the grassroots level where government is felt most directly.

Following the elections, the successful chairmen were officially sworn into office by the former Sole Administrator of Rivers State, Vice Admiral (rtd) Ibok-Ete Ekwe Ibas. The solemn ceremony marked a transition from campaign promises to the reality of public service. With their inauguration complete, the time for celebration has ended; the time for delivery has commenced. The electorate now awaits meaningful action that reflects the hopes and aspirations of the voting public.

As helmsmen of their various LGAs, these leaders must quickly settle down to work. Their constituents expect them to provide direction, formulate policies, and execute programmes that will uplift communities long neglected. The local government tier is closest to the people and, as such, must rise above politicking to meet the everyday needs of the citizenry. It is not enough to occupy office; they must make their impact visibly and positively felt across their domains.

The Supreme Court ruling mandating direct allocation of funds to local governments—although not yet fully implemented—is a welcome development that underscores the autonomy of the third tier of government. Once this is operationalised, the excuses often cited for underperformance will no longer hold water. With funds directly accessed from the Federation Account, council administrations will be better empowered to meet the developmental needs of their localities, if only they manage resources judiciously and prioritise the right projects.

The onus is now on the chairmen to contribute meaningfully to the broader development of Rivers State. The state government cannot and should not be expected to do everything. Local government councils have defined responsibilities—ranging from rural infrastructure, primary healthcare, and basic education to waste management and local security—that must be adequately addressed. It is high time they stopped passing the buck and started acting as the elected leaders they are.

We extend our congratulations to all who emerged victorious in the elections. However, with this victory comes great responsibility. It is no longer about party affiliations or electoral campaigns; it is about governance. The chairmen must launch people-centred projects that will genuinely improve the lives of the rural populace—projects in water supply, road maintenance, school renovation, and youth empowerment, among others. Let their tenure be remembered for its impact, not its slogans.

Central to their mandate should be the welfare of workers. Council employees form the engine room of local governance, and their morale significantly affects service delivery. The new chairmen must ensure regular payment of salaries, staff training, and a conducive working environment. Neglecting this vital aspect will only hinder whatever grand plans they may have for their LGAs.

It is also essential to institute a robust peer review mechanism. The new LG officials should not operate in isolation; rather, they should learn from one another, share ideas, and compete constructively in a bid to outperform each other in service delivery. Healthy competition among council areas will drive innovation and foster accelerated development. Such a system will also help the public identify high-performing councils for emulation.

Given the typically short tenure of council administrations, it is crucial that they focus on projects that are realistic and impactful. Time and resources should not be wasted on white elephant ventures that are neither sustainable nor beneficial to the people. Instead, chairmen should pursue programmes that match their timelines and address immediate community needs.

Peace and security must remain a cardinal objective for all council steersmen. Regardless of who facilitated their election or what political loyalties they hold, they must ensure peace reigns in their areas. Development cannot thrive in an atmosphere of tension and distrust. These leaders must work closely with traditional rulers, youth groups, and civil society organisations to maintain law and order.

A critical understanding must also prevail—that chairmen are leaders of the people, not just leaders of political parties. They must conduct themselves as impartial administrators serving all constituents, irrespective of political affiliations. Additionally, they must work harmoniously with the state governor, who remains the leader of the state. Petty rivalries and political infighting serve no purpose in the development agenda.

Now that the elections are over and governance has begun, it is essential for these chairmen and councillors to adopt an inclusive approach. They must carry everyone along—party members and opposition alike—in their development plans. Creating division or playing favourites will only fracture communities and stall progress. Leadership at the grassroots demands fairness, equity, and a listening ear.

Rivers people have played their part by coming out to vote. The baton has now been passed to the new council helmsmen. They must seize the opportunity to leave lasting legacies in their communities. History will not judge them by the number of rallies they held or the speeches they gave, but by the quality of life they brought to their people. Let them not squander this moment.

Editorial

No To Political Office Holders’ Salary Hike

Published

3 weeks ago

September 22, 2025

The Tide

Nigeria’s Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has unveiled a gratuitous proposal to increase the salaries of political and public office holders in the country. This plan seeks to fatten the pay packets of the president, vice-president, governors, deputy governors, and members of the National and State Assemblies. At a time when the nation is struggling to steady its economy, the suggestion that political leaders should be rewarded with more money is not only misplaced but insulting to the sensibilities of the ordinary Nigerian.

What makes the proposal even more opprobrious is the dire economic condition under which citizens currently live. The cost of living crisis has worsened, inflation has eroded the purchasing power of workers, and the naira continues to tumble against foreign currencies. The majority of Nigerians are living hand to mouth, with many unable to afford basic foodstuffs, medical care, and education. Against this backdrop, political office holders, who already enjoy obscene allowances, perks, and privileges, should not even contemplate a salary increase.

It is, therefore, not surprising that the Socio-Economic Rights and Accountability Project (SERAP) has stepped in to challenge this development. SERAP has filed a lawsuit against the RMAFC to halt the implementation of this salary increment. This resolute move represents a voice of reason and accountability at a time when public anger against political insensitivity is palpable. The group is rightly insisting that the law must serve as a bulwark against impunity.

According to a statement issued by SERAP’s Deputy Director, Kolawole Oluwadare, the commission has been dragged before the Federal High Court in Abuja. Although a hearing date remains unconfirmed, the momentous step of seeking judicial redress reflects a determination to hold those in power accountable. SERAP has once again positioned itself as a guardian of public interest by challenging an elite-centric policy.

The case, registered as suit number FHC/ABJ/CS/1834/2025, specifically asks the court to determine “whether RMAFC’s proposed salary hike for the president, vice-president, governors and their deputies, and lawmakers in Nigeria is not unlawful, unconstitutional and inconsistent with the rule of law.” This formidable question goes to the very heart of democratic governance: can those entrusted with public resources decide their own pay rises without violating the constitution and moral order?

In its pleadings, SERAP argues that the proposed hike runs foul of both the 1999 Nigerian Constitution and the RMAFC Act. By seeking a judicial declaration that such a move is unlawful, unconstitutional, and inconsistent with the rule of law, the group has placed a spotlight on the tension between self-serving leadership and constitutionalism. To trivialise such an issue would be harum-scarum, for the constitution remains the supreme authority guiding governance.

We wholeheartedly commend SERAP for standing firm, while we roundly condemn RMAFC’s selfish proposal. Political office should never be an avenue for financial aggrandisement. Since our leaders often pontificate sacrifice to citizens, urging them to tighten their belts in the face of economic turbulence, the same leaders must embody sacrifice themselves. Anything short of this amounts to double standards and betrayal of trust.

The Nigerian economy is not buoyant enough to shoulder the additional cost of a salary increase for political leaders. Already, lawmakers and executives enjoy allowances that are grossly disproportionate to the national average income. These earnings are sufficient not only for their needs but also their unchecked greed. To even consider further increments under present circumstances is egregious, a slap in the face of ordinary workers whose minimum wage remains grossly insufficient.

Resources earmarked for such frivolities should instead be channelled towards alleviating the suffering of citizens and improving the nation’s productive capacity. According to United Nations statistics, about 62.9 per cent of Nigerians were living in multidimensional poverty in 2021, compared to 53.7 per cent in 2017. Similarly, nearly 30.9 per cent of the population lives below the international poverty line of US$2.15 per day. These figures paint a stark picture: Nigeria is a poor country by all measurable standards, and any extra naira diverted to elite pockets deepens this misery.

Besides, the timing of this proposal could not be more inappropriate. At a period when unemployment is soaring, inflation is crippling households, and insecurity continues to devastate communities, the RMAFC has chosen to pursue elite enrichment. It is widely known that Nigeria’s economy is in a parlous state, and public resources should be conserved and wisely invested. Political leaders must show prudence, not profligacy.

Another critical dimension is the national debt profile. According to the Debt Management Office, Nigeria’s total public debt as of March 2025 stood at a staggering N149.39 trillion. External debt obligations also remain heavy, with about US$43 billion outstanding by September 2024. In such a climate of debt-servicing and borrowing to fund budgets, it is irresponsible for political leaders to even table the idea of inflating their salaries further. Debt repayment, not self-reward, should occupy their minds.

This ignoble proposal is insensitive, unnecessary, and profoundly reckless. It should be discarded without further delay. Public office is a trust, not an entitlement to wealth accumulation. Nigerians deserve leaders who will share in their suffering, lead by example, and prioritise the common good over self-indulgence. Anything less represents betrayal of the social contract and undermines the fragile democracy we are striving to build.