The Chairman of the Association of Licensed Telecom Operators of Nigeria, Gbenga Adebayo, has urged the government to refrain from using the telecoms sector as a quick fix for economic challenges.

Speaking at the Groupe Special Mobile Association digital economy report launch in Abuja, Adebayo emphasized that the telecom industry faces numerous challenges that hinder its growth and development.

He stressed the need for sustainable investment, effective regulation, and a conducive business environment to drive progress in the sector.

Adebayos statement, released on Friday, highlighted the importance of creating an enabling environment for the telecom industry to thrive, rather than relying on it as a palliative for economic woes.

The price review should be a simple regulatory process. The public debate this has gained makes it appear the industry is insensitive to peoples concerns.

While the government tries to provide incentives for the public on account of ongoing macroeconomic headwinds, the telecoms sector should not be used as a palliative to solve the peoples problem. We must price right to sustain the industry; we must price right to have the right investment, Adebayo said.

The GSMA digital report, launched on Thursday, highlights the telecoms 8 per cent contribution to Nigerias GDP and 13.5 per cent when considering the broader ICT ecosystem.

The report also highlighted the significant challenges plaguing the industry, including investment challenges, right of way, multiple taxation, and regulation.

According to Adebayo, there are over 45 associated charges and levies on operators, despite the supposed removal of right-of-way costs.

The ALTON chair said that it creates an unfavorable business environment, discouraging investment and hindering the industrys ability to deliver quality services.

He also stressed that regulatory interference and the lack of independence for the regulator exacerbate the problem.

The industry must be allowed to operate sustainably, with the right investment and regulation, to deliver quality services and drive economic progress, the ALTON chair said.

He added that stakeholders, including policymakers, regulators, and operators, must work together to address the challenges facing the industry and unlock its full potential as a critical sector in Nigerias economy.

Meanwhile, the Federal Government is considering introducing an excise tax on telecom services as part of a broader effort to boost non-oil revenues and safeguard oil and gas revenues.

This move is outlined in the March 2024 Stakeholder Engagement Plan for Nigerias ARMOR program, a collaboration with the World Bank aimed at accelerating resource mobilization reforms.

Without decisive action and fiscal reforms, Nigeria risks reversing decades of development progress and struggling to provide quality public services, according to the document.

The governments ARMOR program aims to boost revenue by targeting specific industries and sectors, including introducing excise taxes on telecom services, which requires all telecom companies to collect and remit the taxes.

Additionally, the program plans to introduce an electronic money transfer levy on electronic transactions through the Nigerian banking system, as well as other measures to increase revenue. (The PUNCH)