Inconsistent tax laws hamper economic growth – AGF

 Multiple taxes and inconsistent tax laws in Nigeria deter investment and hamper the country’s economic growth, the Attorney General of the Federation and Minister of Justice, Mr Lateef Fagbemi (SAN) has said.   Fagbemi added that a well-regulated communications sector implies enacting and implementing laws and regulations that ensure protection of rights including right to privacy, […]

 Multiple taxes and inconsistent tax laws in Nigeria deter investment and hamper the country’s economic growth, the Attorney General of the Federation and Minister of Justice, Mr Lateef Fagbemi (SAN) has said. 

 Fagbemi added that a well-regulated communications sector implies enacting and implementing laws and regulations that ensure protection of rights including right to privacy, data protection and consumer rights as well as regulations that support the ease of doing business in Nigeria.  

 The Chief law officer of Nigeria spoke yesterday at the opening ceremony of the first edition of annual workshop for Attorneys General on emerging issues in the communications sector organised by the Nigerian Communications Commission (NCC) in Lagos. 

He said, “The justice and judicial sector are therefore critical components for regulating communications in Nigeria. This inevitably entails upholding the rule of law by providing level playing fields for actors in the communications sector, preventing the exploitation of consumer rights through strengthening legal and regulatory frameworks and streamlining penal dispensation with a view to ensuring compliance with laws and regulations. Particular attention must be given to measures to curtail the destruction of infrastructure, by ensuring offenders are brought to book.” 

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Fagbemi who later declared the workshop open, noted that Nigeria’s communications sector remains one of the dynamic and rapidly evolving sectors which supports the country’s economic growth. 

He said the Tinubu-led administration is focussed on leveraging advancement in the communications sector as a tool for development and transformation of the economy. 

However, he said this transformation is being hindered by some critical recurring challenges including, multiple taxation and levies imposed by federal, state and local authorities; wanton destruction of telecommunications infrastructure, especially in conflict-prone areas.

Other challenges, he said, are regulatory overlaps that confuse operators and complicate compliance; slow broadband infrastructure roll-out which is due in part to right-of-way challenges and inconsistent state policies, among others.

He said: “Specifically, certain unfortunate incidents have been recorded such as the Ogun State Multiple taxation incident in 2024 which saw the temporary suspension of expansion projects as a result of overlapping local government levies, as well as vandalization of base stations in Kano in 2023. These incidents constitute economic sabotage, negatively impact the development of the communications sector and hinder digital transformation in the country.”

We must harmonise tax regimes – NCC

In his welcome address, the Executive Vice Chairman of NCC, Dr Aminu Maida appealed to attorneys general of the 36 states to work together with NCC and the Presidential Tax and Fiscal Reform Committee to harmonise tax regimes and remove disincentives to investment and economic growth.

Maina expressed sadness over fragmented oversight among various tax collectors at federal, state and local government levels. 

This, the NCC boss said, creates confusion and inefficiencies and reduces the revenue that should have been accrued to the country’s coffers.