The former Minister, in a blog post, said some sections of the tax reform bills make him uncomfortable because they are ambiguous in nature.

Pantami who led the Communications and Digital Economy sector at the time the sector contributed over 18% contributions to the country’s GDP as at 2022, advised the National Assembly (NASS) to suspend legislative action on the bills and allow for wider consultations on the bills.

His post:

“I have been preoccupied for the past week, having attended the World Halal Summit 2024 as a speaker at the invitation of the Presidency of the Republic of Turkiye. Consequently, I couldn’t find time to read and review all the 4 bills, including the Nigeria Tax Administration Bill, 2024. However, over the last 40 hours, I have been reading them, particularly the Nigeria Tax Administrative Bill.

“The bill has the potential to transform tax collection administration if improved and implemented in the national interest. Nevertheless, there are critical observations that need to be addressed, including a potential conflict with the Federal Republic of Nigeria’s constitution.

“Several sections of the Bill make me uncomfortable, primarily because they lack clear definitions, which could lead to significant challenges during implementation. Furthermore, regulatory bodies may exploit these ambiguities when developing their regulatory instruments.

“In light of this, I offer two pieces of advice to the National Assembly (NASS):

1. i) Suspend Legislative Action for now as some of the challenges could not be addressed by the chambers alone. In leadership, the ability to change one’s mind is a sign of intelligence and empathy, not weakness; and

1. ii) Allow for wider consultations on the bills, ensuring that all relevant stakeholders are contacted and any ambiguities are effectively reviewed and addressed.

“Specifically, I recommend reviewing the following sections:

1) Section 3(3)

2) Section 7(6)

3) Section 8(2)

4) Section 23

5) Section 28

6) Sections 95, 96,

97, and 118

7) Section 141 (supremacy clause)

“I believe that tax, constitutional, and business lawyers, among others, also have a significant role to play in improving the bills. As a policy researcher, I may also commend on the remaining 3 bills later.

“Finally, the government must try to address the mistrust between it and its citizens, as our situation as a nation is deteriorating due to this mistrust. Citizens are largely suspicious. Building trust is crucial at this juncture for all arms and tiers of government. We must also prioritise our national interest over and above our personal interests. Issues must also be discussed objectively and critically.

“May we continue to serve our country diligently and honestly, praying to Allah to bless the Federal Republic of Nigeria.”

Pantami claimed that the blockage was made possible by cyberspace infrastructures put in place by the government to monitor activities in the nation’s cyberspace before, during, and after the elections.

He stated that the Federal Government formed a standing committee with the mandate to secure the nation’s cyberspace, which consolidated its efforts, as recorded during the Presidential elections, to ensure that Nigeria’s cyberspace remained safe and secure.

The Minister also praised President Muhammadu Buhari for his support and approval of initiatives to promote the digital economy and cyber security in a statement signed by his Senior Special Assistant on Technical Matters, Dr. Femi Adeluyi.

Pantami, who detailed the attacks from Friday, March 17 to Monday, March 20, said they came from both within and outside Nigeria.

He said:” During this period and as previously reported, a series of hacking attempts were recorded, including Distributed Denial of Service (DDoS), email and Internet Protocol Spoofing (IPS) attacks, SSH Login Attempts, Brute force Injection attempts, Path Traversal, Detection Evasion, and Forceful Browsing.

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“People who ​​end up being first don’t actually set out to be first, they set out to do something they love”. Thus, creating a lasting legacy for themselves.

Dr. Vincent Olatunji, the pioneer National commissioner/Chief Executive officer of the Nigeria Data Protection Bureau (NDPB), is one man who have risen through ranks, expertise both in administrative roles as well as information technology field as a formidable force whose trajectory of achievements keep many on their toes.

All these, he has managed to achieve without giving room for the notion of imitation but rather, by setting an exemplary step in advancing policies to ensure the development of the status quo.

ALSO READ: GTBank, Zenith under Investigation by NDPB

A Certified Public Private Partnership Specialist (IP3 Specialist) and a PECB Certified Data Protection Officer, Dr Olatunji (FIIM, IAPP, and NCS) is a promising figure the technology world needs to watch out for in coming years.

He joined NITDA in 2002 and has worked in various departments thereby rising to the position of a Director in 2014 and Acting DG in 2016 amongst other roles served in various departments before his recent appointment as National Commissioner.

In just over a year, Dr Vincent Olatunji is creating a new legacy as the pioneer National Commissioner/Chief Executive officer of NDPB while setting the pace for the institutionalization of data protection laws in Nigeria.

NDPB is an intrinsic segment of the Ministry of Communications and Digital Economy born on the 4th of February, 2022 out of the need to uphold the National Digital Economy Policy for digital Nigeria (NDEPS) by further strengthening as well as entrenching the protection of personal identifiable information as well as sensitive personal data.

Such data includes: emails, names, telephone numbers, house address, religious beliefs, political lineage, medical records, labour union affiliations information being uploaded online in line with standard global practices in a digital economy.

The objective of the bureau as stipulated by the Nigeria data protection regulation 2019 (NDPR) include;

1. Safeguard the rights of natural persons to data privacy
2. Foster safe conduct for transactions involving the exchange of personal data
3. Prevent manipulation of personal data and
4. Ensure that Nigerian businesses remain competitive in international trade through the safeguards afforded by a just and equitable legal regulatory framework on data protection

While keying into the global digital revolution is inevitable, it is only pertinent that this rising need is met with accurate preparedness.

It is on this note; a major milestone was recorded under the able leadership of Prof. Isa Ali Ibrahim Pantami, with the launch of the National Digital Economy Policy and strategy for a digital Nigeria (NDEPS).

The NDEPS was launched by President Muhammadu Buhari (GCFR) in 2019.

This subsequently led to the re-designation of the Ministry of Communications to include digital economy giving it a new phase. With this development, the journey of the much desired and envisioned digital Nigeria began.

This was however, followed by a number of restructuring to accommodate the new set mandate of the Ministry And such restructuring included, the NDPR.

Inarguably, Dr Olatunji has continued laying exemplary standards for any successor to measure up to in time memorial as he has managed to adapt existing resources and manpower to carter for the immediate needs of his bureau to ensure swift and immediate operations against all odds to kick start immediate operations.

Stepping into the herculean task of laying solid bedrock for data protection policies and strategies. Without giving rooms for doubts or sloppiness while distinguishing himself as a formidable force to reckon with, as a pioneer, may pose a major challenge to many.

This is because; the way of the pioneer is always filled with different hurdles stemming from proper administration to implementation of policies.

However, Dr Olatunji draws strength from his love for his profession. Leaving no stone untouched in his quest for achieving excellence as he emulates the popular saying that “People who end up being first don’t actually set out to be first, they set out to do something they love”.

The Bureau, within the last one year of its establishment, has recorded significant growth under various parameters including but not limited to the following:-

• Rate of increment of the public sector integration into data privacy and protection framework – 100%,
• Rate of increment in the enrolment of DPOs from data controllers and processors across Nigeria – 600%,
• Rate of increment in the licensing of Data Protection Compliance Organizations (DPCOs) – 50%

Similarly, revenue generation through the implementation of the NDPR has increased by over 60%.

The foregoing milestones are taking place at a time when the Digital Economy under Prof. Isa Ali Ibrahim Pantami is breaking records in its contribution to Nigeria’s GDP. The ICT sector for instance contributed 18.44% to the total real GDP in Quarter 2 of 2022 – outperforming virtually all other sectors.

The establishment of the NDPB, under the visionary leadership of President Muhammadu Buhari, has strengthened the bulwark of fundamental rights and freedoms of Nigerian citizens in the data economy ecosystem and has, to all intents and purposes, earned Nigeria a pride of place in the arena of international data governance and human capital development.

With the recently approval of the Nigeria Data Protection Bill by Federal Executive Council (FEC) for further ratification and endorsement by the National Assembly, we wish Dr. Vincent, twice as much of the successes recorded by him just in one year as he sets out to achieve greater developments in the strategic implementation of data protection laws in Nigeria.

There is no gainsaying Nigeria’s economy, like many others in the world, has been hit by the COVID-19 pandemic, and lately the ongoing Russia-Ukraine war.

There is impending economic recession, looming food shortage; and the perennial oil theft continues to compound the issues, leaving the somewhat mono-economy gasping for breath.

The 36 State Governors have raised the alarm that they may not be able to pay salaries in the coming months as a result of dwindling revenue from the federations account.

Following these concerns and more, the Finance Minister has seen telecommunications as a sub-sector with a magic wand to rescue the erring economy.

The Minister speaking through Mr. Tanko Abdullahi, the Special Adviser on Media cited the Finance Act 2020 as the enabling legislation for the tax on all voice calls, SMS and data services, in addition to the existing 7.5 percent Value Added Tax (VAT) paid for goods and services across all sectors of the economy.

Truly, the Ministry is empowered constitutionally to collect and disburse government revenue; formulating policies on taxation, tariffs, fiscal management etc., preparing and managing the annual budget, preparing annual accounts for ministries, departments and agencies, managing federal debt, etc. However, the present economic indices (of Nigeria) have made the duties more tasking for the Minister.

But, we strongly believe that Zainab Ahmed, the Minister of Finance, Budget and National Planning should pay close attention to Professor Isa Pantami, the Minister of Communications and Digital Economy’s submission. He has described the proposed tax as “ill-timed”.

“I have not been officially informed about it and we at the Ministry are not satisfied with any effort to introduce excise duty on telecommunications.

“We will definitely challenge the decision,” Pantami said at the maiden edition of the Nigerian Telecommunications Indigenous Content Expo (NTICE) organized by the Nigerian Communications Commission in Lagos.

Why Minister Zainab Perceives the Telecoms Sector as a Cash-Cow

The Nigerian telecommunication sector is the largest segment of the Information and Communication sector. Nigeria has one of the largest telecom markets in Africa. In less than 25 years, the telecommunications sector has seen over $75 billion in investment and a massive 250 million connected lines. This is up from NITEL’s 400,000 pre-GSM auction.

The sector includes a strong multinational presence. The leading players are MTN, a South African based multinational Company, Airtel (an Indian based multinational telecommunication), Glo (a Nigerian multinational company) and 9mobile (formerly Etisalat).

The sector over the years has contributed immensely to Nigeria’s economy and the lives of Nigerians. In fact, by the fourth quarter of 2020, telecom was one of the sectors whose performance lifted the country out of recession by contributing 12.45 percent to the country’s Gross Domestic Product (GDP).

The sector has experienced rapid growth and helps in e.g. easier banking services (bank mobile apps) and access to e-learning platforms to Nigerians, but not without multifaceted challenges.

Why proposed tax (increase) on telecom voice and data services should be dropped:

Two months back, President Muhammadu Buhari inaugurated a 27-man Council on Digital Economy tasking them on improved ranking of Nigeria on Ease-of-Doing-Business which has been the albatross to business growth in recent time.

With that move, it implies the President understands the place of National Digital Economy in diversifying the economy from oil of which the telecom sector plays major roles.

Sadly, the Nigerian telecommunication sector has witnessed stalled foreign direct investments leading to delays or deferrals of expansions and upgrades to networks and this trend has continued overtime.

The Finance Minister should know that the cash-cow needs care now. The sector is faced with low consumer purchasing power, currency movements and the recent loss of global investors. The inaccessibility of the dollar in the economy resulted in weak macroeconomic conditions. Nigeria’s weak macroeconomic conditions have led to weak labour market dynamics (high unemployment and underemployment), reduced disposable income and poor corporate performance.

To ensure long-term growth and sustainability, the Nigerian government should be rolling out incentives to support the sector which will lead to the Mobile Number Operators investing their assets in more creative services that focus primarily on meeting consumer needs and establish a regulated minimum market price. These will create new streams of income for operators and mitigate the decline in their traditional revenues.

Prior to 2014, Nigeria was attractive to both local and foreign investors due to a stable currency and rise in oil prices. However, since 2016, there was a significant fall in oil prices which resulted in the shortage of dollars and depletion of external reserves, revenue shortfalls, high inflation and ultimately a recession. The naira’s severe devaluation to N419/$ losing about 70% of value since 2015, pushed up the costs of imported items such as RF Coverage Equipments (Node B) and Transmission Equipment (Optical Fibre) which stifled expansion plans of most network operators from expanding their service capacity. The sector has also been affected by a reduction in consumer demand due to lower disposable income in consumption.

We want to remind the Finance Minister that Nigeria has set target for commercial launch of the fifth generation (5G) technology later this month which will require massive investments in billions of dollars. Is the Minister guaranteeing the availability of forex to the telcos? Is she aware that the Central Bank of Nigeria under Mr. Godwin Emefiele, at a time, removed telecom equipment from the list of forex-worthy items for importation? How much of the equipment is manufactured in the country?

Is the Finance Minister aware that a company like MTN has powered its Cable Landing Station (CLS) with generators in the past 10 years and counting? Remind us of the price of a litter of diesel, presently.

Is the Minister aware there are Bills on the floor of the Senate targeted at the telecommunication companies to deduce some percentages of their revenues to sponsor the provisions of these bills?

What is the Minister’s contribution towards resolving the Right-of-Way (RoW) impasse between the telcos and State governments? There are over 42 taxes and levies paid by telecom operators in Nigeria. As Federal government agencies are cutting their bounds of flesh, State revenue officers are readying their knives for cuts too. To make matters worse, local government revenue officers have made life miserable for telcos; down to street urchins who insist on collecting their own ‘taxes and levies’ before generators powering cell sites are re-fueled.

The Federal Government can set an example: Declare zero charges on Right of Way to telcos laying fibre optic cables along Federal highways. With this, you have set an example on how to drive the digital economy through support to businesses.

Many have argued that these telcos declare billions of naira in revenue yearly, but are we saying that investors do not deserve profits or shareholders should forfeit their dividends?

The truth is that with low incomes, more GSM mobile subscribers will move away from traditional cellular services to data bundle packs, which allows them to use Over the Top (OTT) services.

Telecom operators and Internet service providers are currently at loggerheads to deliver data at relatively cheaper prices. The fierce price competition among telecom operators on their voice and internet data has led to the contraction in the sector revenue over time. Consumers benefit from temporary low prices only in the short run. The sector has also contended with OTT players that utilize technology to convey voice/video calls at a fraction of traditional voice call costs. While Nigeria’s data bundle prices are the lowest in subSaharan Africa, they are priced below actual costs which can harm the sector and puts long-9term customer benefits at risk.

Smaller mobile network operators find it hard to survive in the market which leaves an industry dominated by few players. These few players will increase their market share and have the power to influence prices. Prices can more than double which can have a negative effect on the levels of consumption.

Solutions

The Minister of Finance should not reverse the changes made under the Nigeria National Digital Economy Policy which has committed the present administration in creating an enabling environment for the private sector to contribute innovative solutions to allow consumers to benefit from Information Communication Technology (ICT) advancements.

This will in turn bring about efficiency and productivity in the telecom sector and eventually enhance economic growth which is why the proposed tax is counter-productive.

The industry regulator, the Nigerian Communications Commission (NCC), should ensure that the quality of service provided by telecom operators is enhanced through an emphasis on the strength of their signals and the quality of their data services.

Customers can also play a part in regulating prices by valuing and promoting services that offer the best customer experience and not those that offer only the cheapest price. 

To ensure long term growth and sustainability there is a need to stop the proposed excise duty on telecoms services. This will result in increased investors’ confidence and will enable operators to serve multinationals including Small and Mediumsized Enterprises (SMEs) that are dependent on their internet services (better quality service). The sub-sector needs more government’s support and protection as it provides the infrastructural backbone for the new digital economy that drives socioeconomic development across all sectors in the economy (ecommerce, Mobile banking).

Prof. Isa Ali Ibrahim (Pantami), the Minister of Communications and Digital Economy (Nigeria), reiterated this at the Co-Create 2022 International Tech Exhibition and Gage Awards.

The Minister who was represented by Kashifu Inuwa, the Director General of the National Information Technology Development Agency (NITDA), expressed his utmost pleasure at the event which he delineated as being timely and strategic.

While describing the theme of the event ‘collaborative innovation for a better tomorrow’ as exciting, Pantami stated that the most important part of the innovative process is commercializing it.

He stated that “Innovation is a process of taking an idea from inception all the way to impact and while many people think innovation and invention mean the same thing, innovation is actually creating a market or democratizing access to your solution, product or services”

Underpinning his point with an illustration, Pantami cited that the telecommunications sector which was orchestrated by Mo Ibrahim in Africa about 20 years ago and which encountered so many challenges has now evolved into the biggest sector in Africa.

Giving assurances of the government’s support to Innovators in the country, he urged all players in the tech ecosystem to think and act like Mo Ibrahim with the mindset of creating solutions to solve the country’s problems.

“In Nigeria, we have many problems and we need more innovations to solve them. This kind of collaborations we are having here today can open doors for this because you cannot survive in isolation. Everything is about ecosystem”, he noted.

Buttressing his point further, the Minister holistically averred that the 5 critical stakeholders in an ecosystem are the Innovators otherwise known as the Entrepreneurs who start and grow businesses with ideas and solutions, the Human Capital Developers who discover talents and are the human components of technology, the Government who are the enablers of a level playing field for innovators, the Risk Capitals who invest money in startups and the Corporate Organizations who buy the products.

He further asserted that an effective collaboration of these 5 stakeholders in Nigeria will produce an excellent and viable ecosystem in the country.

Emphasizing the present administration’s commitment to the implementation of the National Digital Economy Policy and Strategy (NDEPS) by effectively collaborating with innovators in the industry, Pantami disclosed that the Federal Executive Council has given approval for the Ministry and Agencies under its supervision to co-create solutions with the ecosystem in areas of procurement, IP & Patenting and giving Incentives to encourage the startups.

The Honorable Minister while giving further disclosure on how co-creating with the ecosystem can be achievable, highlighted that showing clarity on processes by all parties, unleashing energy, building trust, building stronger startups and devising policies to shape the future are key indices into establishing and sustaining a formidable ecosystem in the country.

“Whatever we do, we don’t do in isolation. We work with the ecosystem to co-create policies and co-create the regulations. Whatever we do, we do together. We believe that together, we can do greater things. That is why we are here to work with you and to co-create our future”, he concluded.

The technology exhibition, which was occasioned at the Landmark Centre, Lagos had in attendance, Mr Olatunbosun Alake, the Special Adviser to the Lagos State Governor on Science and Technology; Dr. Krish Ranganath, the Chief Technical Officer of the African Data Centre; 100 tech exhibitors and other key players in the tech ecosystem and was geared at showcasing innovative businesses locally and across the globe with a physical presence in Nigeria.

The event will take place at ITU Headquarters in Geneva, Switzerland.

The appointment was conveyed to the Minister through a letter from the Secretary-General of the ITU, who noted that Professor Pantami was appointed “in light of his overall commitment to Information and Knowledge Societies and the active role he has played in the WSIS Process” and it followed consultations with various stakeholders.

The Forum is to be attended by several high level stakeholders, including Cabinet Ministers from ITU countries.

The WSIS Forum 2022 serves as a key forum for discussing the role of ICTs as a means of implementation of the Sustainable Development Goals and targets, with due regard to the global mechanism for follow-up and review of the implementation of the 2030 Agenda for Sustainable Development (UNGA Resolution A/70/1).

The WSIS Forum also provides a platform to track the achievements of WSIS Action Lines in collaboration with the UN Agencies involved and provides information and analysis of the implementation of WSIS Action Lines since 2005.

The WSIS Forum, is co-organized by ITU, UNESCO, UNDP and UNCTAD with the engagement of 24 other United Nations Agencies, including FAO, ILO, ITC, UNDESA, UNICEF, UNIDO, UNITAR, UNHCR, UNODC, UNEP, UPU, UN Tech Bank, WMO, WIPO, WHO, WFP, UN Women and UN Regional Commissions.

According to a statement signed by Dr Femi Adeluyi, Technical Assistant (Research & Development) to the Minister, in a follow up to the UN General Assembly outcomes in 2015 on the Overall Review of the implementation of the WSIS Outcomes that called for a close alignment between the WSIS Process and the 2030 Agenda for Sustainable Development, the overall theme for this year is  ”ICTs for Well-Being, Inclusion and Resilience: WSIS Cooperation for Accelerating Progress on the SDGs”.

The Forum aims at enhancing cooperation, partnership, innovation, exchange of experiences and good practices in ICTs for sustainable development.

“The appointment of Professor Pantami has given Nigeria, and indeed the African continent, the unique role of coordinating the activities of the WSIS in its 20th year, following the WSIS Phase I meeting that took place in 2003.

“It is apparent that the world has taken notice of the giant strides of Nigeria’s digital economy under the supervision of the Minister.  “Prof Pantami extends his immense gratitude to President Muhammadu Buhari for the constant support he has given the sector”, the statement reads.

Margrethe Vestager, the Executive Vice President of the European Union disclosed this today Monday, 14th February 2022 during a working visit to Professor Isa Ali Ibrahim (Pantami), the Minister of Communications and Digital Economy, at the Digital Economy Complex in Abuja.

According to Uwa Suleiman, spokesperson to Pantami, Vestager while extolling the exemplary leadership style of the Minister, noted that the need for stronger partnerships has brought global attention to the country’s Digital Economy sector.

She enumerated the Union’s intervention in the sector to include; Digital Infrastructure Investments, Digitalisation of Public Services, Digital Entrepreneurship, Digital Skills and Digital Governance.

“Nigeria has immense potential for digitalization and  with a combination of One Hundred and Sixty Million Euros in grants and Six Hundred and Sixty Million Euros in loans, the European Union aims to comprehensively support Nigeria’s digitalization strategy” she emphasized.

In his response, Pantami while expressing his delight and appreciation for the intervention reiterated the Federal Government’s willingness to partner with the European Union. “Africa has always looked up to Europe in the area of technological advancements and this partnership is a welcome development that will project the digitalization aspirations of our country.

Pantami was particular about digital entrepreneurship and the immense impact it will bring to bear on the nation’s economy.

“This partnership with regards to digital entrepreneurship, will address the challenge of unemployment and un-employability alongside the Nigeria Startup Bill which also aims to address a myriad of issues within the ecosystem.”

The Minister further informed the delegation that Nigeria hopes to achieve the paperless office by the year 2030 and it is on track, taking into cognizance the rate at which public institutions are embracing the digital economy drive.

The European Union intervention is in alignment with the Nigeria Digital Economy Policy and Strategy (NDEPS), a digital roadmap initiated and championed by Pantami towards the economic digitalization drive of President Muhammadu Buhari (GCFR).