By Mohammed Mohammed
The Minister of Communications and Digital Economy, Dr. Ibrahim Pantami, on Tuesday said some state governors’ disregard for the Right of Way (RoW) agreement
will negatively impact on the effort being made by the federal government to grow the economy.
He said government is dismayed by the decision of some state governors to increase the RoW Charges in disregard of the resolutions reached by the National Economic Council (NEC).
In a statement signed by the minister, he recalled that NEC in 2013, set up a committee comprising state governors and ministers to review the issues of multiple taxation in the telecommunications industry in the country and its impact.
After extensive and wide-ranging consultations, the committee according to him, resolved to harmonize the taxes applicable to broadband related activities and streamline the taxation management processes across the country.
The resolution he added was specifically to deepen broadband penetration for the social and economic development of the country, agreeing on a uniform RoW charge of N145.00 per linear meter of fibre.
Pantami, added that in October last year, the ministry had written to all the governors, drawing their attention to these resolutions and soliciting their support and collaboration towards the realisation of the national digital economy by fast-tracking the deployment of broadband infrastructure for the provision of affordable internet services to underserved and unserved areas.
He said: “It is true that the digital economy today is strategically dominating the world economy. Oxford Economics puts the current value of the digital economy at $11.5 trillion which is about 16% of the world economy.
“Furthermore, the World Economic Forum (WEF) revealed that 60% of the global economy is expected to be digitised by 2022. With the renaming of the Federal Ministry of Communications to Federal Ministry of Communications and Digital Economy as well as the unveiling of the National Digital Economy Policy and Strategy by President Muhammadu Buhari.
“It is however disheartening to hear that some States have decided to disregard these resolutions and have, in some cases, increased the RoW charges by over 1,200%.
“This will no doubt impact negatively on the efforts being made by the federal government. It is established that there is a strong correlation between a country’s broadband penetration and its Gross Domestic Product (GDP).
“An ITU study on Africa indicates that a 10% broadband penetration would result in an increase of 2.5% of GDP per capita.”
He said the ministry is calling on all on the governors that have increased the RoW charges, to reconsider these decisions in the interest of Nigerians as well as for the socio-economic growth and development of the country.
“We also draw their attention that these decisions, if implemented, will result in an increase on the costs of operations of the telecoms operators which will naturally be passed to the consumers.” The Minister said.