Expert Urges FG to Reject Calls for Dollar Payment by Foreign Telecom Operators

Emma Okonji

Telecommunication expert, Mr. Ayoola Oke has urged the federal government and the Nigerian Communications Commission (NCC) to reject the demands by foreign- owned telecom operators who are calling for dollar denominated payment system from smaller and local operators in the country.

Oke, in a statement he issued yesterday, said the ongoing discussion between NCC and the foreign telecom operators should comply with Section 15 of the Central Bank of Nigeria (CBN) Act that makes naira the exclusive means of payment in and within Nigeria and between any two Nigerians companies.

Oke, who is a lawyer, explained that recently the Governor of Central Bank in his efforts to shore up the value of the naira, had issued a statement reminding Nigerians that it was a criminal offence to refuse naira payment for goods and services transacted in the country.

According to him, the challenge for the Nigerian economy was that the naira would continue to bleed if dollarisation was not resisted.
Oke cited an instance were foreign-owned entities who were able to collect revenue in dollars would evade central bank’s control of repatriation of dollars out of the country, adding that the Federal Inland Revenue Service (FIRS) may also find it more challenging to monitor revenue of such companies and tax them appropriately.

“I am aware of a confusion on a matter whereby the MTN and some major foreign owned operators are demanding payment in dollars but I believe the NCC is looking into it with a view to resolving it.

“The consultation between NCC and some smaller operators is ongoing and my position is that any resolution should comply with Section 15 of the CBN Act that makes naira the exclusive means of payment in and within Nigeria and between any two Nigerian companies.

“I believe recently that the central bank Governor, in his effort to shore up the value of the naira, issued a statement reminding Nigerians of what I believe is a reference to Section 20 that makes it a criminal offence to refuse Naira payment for goods and services transacted in Nigeria,” Oke said, adding that Nigerians were witnesses to the tax remittance controversy between MTN and FIRS currently making rounds in the news media.

The legal practitioner therefore urged Nigerians to join hands to save the naira by not subrogating it with any foreign currency.
Oke also suggested that NCC should step in to reserve a minimum of 30 per cent of in and out bound international traffic for routing through smaller locally owned Nigerian companies.

He stressed that foreign owned companies must not be allowed to control the routing of all Nigeria’s international traffic as this even raises national security and safety concerns.