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A
spokesperson of the Nigeria Communication Commission (NCC) has said
that the commission is not involved in granting tax waivers to
telecommunication companies.

The
House of Representatives had accused the commission of helping to
arrange dubious tax waivers for telecommunication companies following a
review of the Auditor General’s reports between 2003 and 2005 asking
the Economic and Financial Crimes Commission (EFCC) to investigate the
waivers.

Reuben
Muoka, NCC’s spokesperson, said in a telephone interview, that, “Those
associating the commission with tax holiday to the telecom companies
are totally misinformed. The commission does not grant tax waivers for
telecom companies.

“Those
responsible for recommendation of tax exemptions are the Nigeria
Investment Promotion Commission (NIPC), Federal Ministry of Finance,
Federal Ministry of Commerce, National Planning, and other government
agencies.”

Mr. Muoka further explained that tax waivers are not only in the telecom sector, but in all other sectors of the economy.

“The
essence of the tax holiday to pioneers was to explore the sector and
the tax waivers given to the telecom companies were fully justified
because they met the criteria for such holiday,” he said.

Meanwhile,
Femi Babafemi, EFCC spokesperson, said that investigations were ongoing
on the matter. “I am aware that we been investigating the NCC over the
tax waivers and in relation to that we invited the former executive
vice-chairman, Ernest Ndukwe, for questioning in 2009 and the
investigation is still on.”

Encouraging first timers

Also
speaking, Kenneth Ugbechie, the secretary of Africa Telecoms
Development Initiative, a non-governmental organisation, said, “When
the telecom companies were given licences in 2001, they were given tax
waiver, which is the same principle all over the world for people that
are investing into business venture, which is called tax wavier or tax
holiday.

“It
is to encourage first timers and that was what the federal government
did in the case of the telecoms companies. But what people are saying
now is that the telecom companies ought not to have been given waiver
since those companies were declaring profit from day one.”

Mr.
Ugbechie explained that the reason why the telecom companies have been
making profit in their business is because they have done well.

“I
think that is illogical to say that they should not have been given tax
waiver. They started making profit because they did their job well.
They deserve to be given tax wavier because as at the time they came
into the country, the sector was poor and nobody was willing to invest
in the sector,” added Mr. Ugbechie.

Mr.
Muoka said, “The dividends of that tax holiday are very visible in all
sectors of the economy from the banking sector, labour, and several
business activities that have been generated from telecom sector.”

“The
Gross Domestic Product (GDP) has improved as a result of the telecom
sector and the image of the country within the global community has
gained a lot of mileage as a result of telecom revolution,” Mr. Muoka.

“When something is done well and done rightly, we should not
quarrel with it. The House of Representatives have to be told the truth
and stop chasing shadows,” concluded Mr. Ugbechie.