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FG Moves To Impose New Tax Regime On Telephone Calls

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A ploy to cater for the health needs of Nigerian citizens considered to be most vulnerable to health challenges, may see the Federal Government injecting a new tax on phone calls in the country, soon.
This is coming despite recent increment by telecommunication companies for the price of their services as a result of harsh economic operating conditions.
The new telecom tax which is coming in the equivalent of a minimum of one kobo per second for phone calls is meant to boost sources of funds required to finance free healthcare for the vulnerable group in Nigeria.
The information was contained in the National Health Insurance Authority Bill 2021 signed by President Muhammadu Buhari, recently.
The act includes a provision under Section 26 subsection 1c which states that the source of money for the Vulnerable Group Fund includes telecommunications tax, not less than one kobo per second of GSM calls.
The Fiscal Policy Partner and Africa Tax Leader at PricewaterhouseCoopers, Taiwo Oyedele, said, “S.26 of this new law imposes a telecommunications tax of not less than 1kobo per second on GSM calls. With call rates at about 11kobo per second, this translates to a 9per cent tax on GSM calls.
“The tax is one of the sources of money to the Vulnerable Group Fund to subsidise the provision of healthcare to the group defined to include children under five, pregnant women, the aged, physically and mentally challenged, and the indigent as may be defined from time to time.”
According to the act, the Vulnerable Group Fund is money budgeted to pay for healthcare services for vulnerable Nigerians who cannot pay for health insurance in a bid to subsidise the cost of provision of health care services to vulnerable people in the country.
For funding, the act provides several options such as basic health care provision fund to the authority; health insurance levy; telecommunications tax, not less than one kobo per second of GSM calls.
It also stipulates that money that may be allocated to the Vulnerable Group Fund by the Government; mostly that accrues to the Vulnerable Group Fund from investments made by the Council: and grants, donations, gifts, and any other voluntary contributions made to the Vulnerable Group Fund.
Also in the new act, every citizen in Nigeria is expected to obtain a health insurance policy.
The telecom operators also had cause to write to the Federal Government, through the Nigerian Communications Commission, on the conditions of the industry.
The operators under the aegis of the Association of Licensed Telecommunication Operators of Nigeria had proposed a 40per cent increase in the cost of calls, SMS, and data owing to the rising cost of service provision in the country.
Most mobile phone users have also observed the poor service provision from service providers, a situation many attribute to high cost of energy.

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Land ownership disputes are civil matters, not police cases – FCID

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The Force Criminal Investigation Department, FCID, Alagbon, Lagos, has restated that disputes over land ownership are civil matters that fall under the jurisdiction of the courts and should not be handled by the police.

Speaking with newsmen on Sunday, the FCID spokesperson, Assistant Superintendent of Police, Aminat Mayegun, said the role of the police in land-related cases is limited to addressing criminal infractions that may arise from such disputes.

Her clarification follows growing complaints from property owners and residents in Lagos who have raised concerns about alleged police interference in land disputes, despite long-standing directives that ownership disagreements are civil in nature.

Some residents have accused law enforcement operatives of actions that allegedly worsened tensions, encouraged intimidation and complicated the resolution of land ownership matters, which they insist should be determined strictly through legal proceedings.

Others claim such involvement sometimes tilts in favour of powerful interests, further eroding public confidence.

Mayegun explained that issues relating to land boundaries or ownership are governed by civil law and must be settled in court, stressing that the police lack the authority to determine who owns any parcel of land.

She noted, however, that police intervention becomes necessary when criminal acts are committed in the course of a land dispute.

“The police are duty-bound to intervene and investigate only when land-related disputes give rise to criminal offences, as they have no mandate to determine ownership of land,” she said.

According to her, offences such as obtaining money by false pretence, malicious damage to property, arson, assault or any other act recognised under the Criminal Code Act fall squarely within the responsibility of the police.

She warned that individuals who resort to fraud, violence or destruction of property under the pretext of asserting land rights would be thoroughly investigated and prosecuted.

The FCID spokesperson also cautioned members of the public against taking laws into their hands, urging aggrieved parties to seek redress through established legal channels.

She assured that the Nigeria Police Force would continue to carry out its duties strictly in line with the law and called on citizens to report cases of improper land-related interference through the Police Complaints Response Unit.

 

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Govs Move To Prioritise Sugar For Industrial Growth

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The Nigeria Governors’ Forum has unveiled plans to prioritise sugar as a key driver of industrial development across the country.

The initiative, in partnership with the National Sugar Development Council, aims to boost local production, create jobs, and reduce Nigeria’s reliance on imported sugar.

Disclosing this yesterday in a statement, the NGF said it has agreed to include sugar projects as priority beneficiaries in engagements with both local and international development partners.

The decision follows requests by the NSDC to accelerate the development of the sugar sector, with the dual goals of achieving self-sufficiency in sugar production and creating employment opportunities for Nigerians.

Speaking at a meeting with NGF officials, NSDC Executive Secretary/CEO, Kamar Bakrin, highlighted the vast investment potential in the sugar sector and encouraged governors of states with suitable lands to embrace sugar project development.

He identified 11 states with prime sugarcane cultivation potential: Oyo, Kwara, Niger, Nasarawa, Kaduna, Kano, Bauchi, Gombe, Jigawa, Adamawa, and Taraba.

“Recent macroeconomic shifts have made domestic sugar production more commercially viable.

“While global sugar prices remain relatively stable in dollar terms, exchange rate fluctuations have made imports significantly more expensive. With locally sourced inputs, Nigeria’s sugar industry now offers robust returns,” Bakrin explained.

He added that Nigeria has approximately 1.2 million hectares of land suitable for large-scale sugarcane cultivation, far exceeding the 200,000 hectares needed to achieve national self-sufficiency.

“Sugarcane projects will empower host communities, promote inclusive development, and support environmental sustainability,” he noted.

Bakrin also cited a model sugar project producing 100,000 metric tons annually, requiring an estimated $250 million investment, with an internal rate of return of 24 per cent. Beyond sugar, the projects generate valuable by-products such as ethanol and bio-electricity, further enhancing profitability and sustainability.

The Director-General of NGF,  Abdulateef Shittu, welcomed the initiative, noting that several state governments are already exploring sugar-related investments spanning land development, agricultural schemes, and agro-industrial projects.

He emphasized that effective coordination, credible investment frameworks, and alignment with federal policy objectives are critical for scaling such opportunities.

“The NGF secretariat is committed to supporting state-level development priorities that leverage sugar projects for rural development and job creation,” Shittu stated.

 

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Urban Nigerians enjoy 40% faster internet than rural users — NCC

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Urban residents in Nigeria enjoy faster internet than rural users, a new report by the Nigerian Communications Commission, NCC, has revealed, even as nationwide connectivity shows modest improvements.

The report, which analysed 377,135 network tests using geospatial mapping, found that urban download speeds average 20.5 megabits per second, Mbps, compared to 11 Mbps in rural areas, a gap of about 40 percent. Upload speeds were also uneven, with urban users recording 10.5 Mbps against 6.1 Mbps in rural locations.

Although rural speeds have improved from 8.5 Mbps earlier this year, the NCC said higher latency in rural areas continues to affect real-time services such as voice and video calls.

NCC said: “Urban areas account for just 5.2 percent of Nigeria’s landmass but 96.7 percent of total network activity.

“Rural communities, which cover over 93 percent of the country, experience much sparser usage and slower speeds.”

The report also highlighted that the choice of network operator can sometimes matter more than location.

It stated: “MTN’s average rural download speed of 15.8 Mbps was found to outperform Glo’s average urban speed of 9.5 Mbps, showing uneven performance across operators.

“Major highways, especially the Lagos–Abuja corridor, were identified as ‘digital corridors’ where network coverage is stronger.

“Rural towns along these routes often enjoy better connectivity than remote interior villages, reflecting how road and network infrastructure grow together.”

On technology trends, the report noted that “4G LTE remains Nigeria’s broadband backbone, delivering speeds of 10–20 Mbps in rural areas, while 5G networks, where available, offer speeds of up to 220 Mbps but are still largely confined to dense urban centres.

“Among operators, MTN delivered the most consistent nationwide performance, followed by Airtel. T2 recorded the highest median rural speed at 24.9 Mbps in select regions, while Glo maintained baseline connectivity of 9.5 Mbps across both urban and rural areas.”

The NCC said closing the persistent urban-rural gap will require targeted rural infrastructure upgrades, improved upload capacity, and stronger quality-of-service standards to support digital education, e-government and remote work.

“Improving network quality outside cities is akey to ensuring all Nigerians benefit from digital services,” the regulator added.

 

 

 

 

 

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