Signing of the Executive Order waving the payment of Right of Way charges for telecom operators and other investors in the Information and Communication Technologies sector is yet another move by His Excellency, Malam Dikko Radda to eliminate bottlenecks to investment with the ultimate aim of spur isustainable economic development in Katsina State. The Right of Way (RoW) charge is the levy paid to state governments for the laying of optic fibre by telecoms operators which is usually charged at N145 per let linear meter as fixed by the Nigeria Communications Commission (NCC). 

However, coming from the industrial sector where he had served as the Director General of the Small and Mdium Scale Enterprises Development Agency of Nigeria (SMEDAN), Malam Dikko Radda has realized after years of dealing with investors and other players in the sector that such waivers can go along way in giving the state comparative advantage in terms of wooing investors in the all-important ICT sector which has become the key driver of economic growth around the world.

It is on record that some states charge higher than the amount pegged by the NCC for the laying of fiber optics by Telecom operators which could affect the cost of telecom services that include airtime and data. This could also lead to significant increase in the cost of these services.

The signing of the Executive Order is in line with constitutional provisions which empowers state governors to take measures that will promote commerce, trade and industry in their states with the aim of enhancing the economic viability of their state which will in the long run boost their Internally Generated Revenue, create jobs, rejuvenate the small and mediums scale enterprises sector and create more liquidity within the local economy.

The Executive Order signed by the Governor contains three key clauses which are that the RoW Oder comes into immediate effect on the 8th of December, 2023, when it was signed; that from the commencement of the Order, charges on Right of Way throughout the State shall be free of charge per linear metre and that the terms of the order may be reviewed by the Governor as may be determined by mutual interest of the state government and the prospective investors.

In a thriving economy like Katsina State, the suspension and waving of levies, taxes and duties demonstrates government's sensitivity to the challenges faced by businesses and the consumers of their goods and services. It will also go a long way in curbing rising inflation and the subsequent hardships faced by both the businesses and the citizens. It also saves macro, small and medium scale enterprises from folding up which could affect l the local and national economy.

Just recently, President Bola Ahmed Tinubu signed four Executive Orders, suspending the five per cent excise tax on telecommunication services and the excise duties escalation on locally-manufactured. Impressed by the move, the organized private sector commended the President, noting that the measure showed that the federal government was sensitive to the challenges facing businesses and citizens. 

The group which comprised of the Manufacturers Association of Nigeria, Lagos Chamber of Commerce and Industry,  Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, asked the President to implement additional tax waivers and incentives in order to reduce the high cost of doing business, address rising inflation and tackle the various economic challenges affecting businesses.

Implementing such policies in Katsina State is the right step at the right time as it would attract key investments in ICT and other related sectors thereby assisting Katsina to become one of the leading states in the ICT and Telecom sector.

Katsina Times 

@ www.katsinatimes.com 

Jaridar Taskar labarai 

@www.jaridartaskarlabarai.com 

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