As Nigeria’s telecom industry grapples with economic challenges, operators now face a new hurdle—rising fees under the amended FRC Act 2023.
Previously capped, these fees are now tied to annual turnover, which significantly increases costs for non-quoted firms.
The Association of Licensed Telecommunications Operators of Nigeria (ALTON) pointed out that the new payment structure imposes fees ranging from 0.02% to 0.05% of annual turnover, depending on revenue size.
This, they argued, would place a heavy strain on non-quoted telecom companies, severely affecting their ability to operate effectively.
Their main concern lies in the financial burden imposed on non-quoted public interest companies, as the revised structure replaces the previous ₦1 million cap with a percentage of turnover.
ALTON explained that these companies are already struggling with rising operating costs and exchange rate fluctuations.
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Now, they face an overwhelming financial challenge.
For instance, a telecom company with a turnover of ₦1 trillion would have to pay a staggering ₦500 million in dues—five times what a publicly quoted company with the same turnover would pay.
While ALTON understands the government’s intentions, they warned that this change could harm the very companies providing vital services.
Therefore, they urged the FRCN to reconsider the structure, proposing that dues be based on profit rather than revenue.
They also called for the reintroduction of a cap for non-quoted companies, urging for a fairer, more sustainable solution to protect the telecom sector.
