Telecom operators in Nigeria have raised concerns over the revised annual payment structure under the Financial Reporting Council Amendment Act 2023 (FRC Act), warning it will adversely affect the industry. Acting through the Association of Licensed Telecom Companies of Nigeria (ALTON), they expressed fears that the new payment scheme, which links dues to a percentage of annual turnover, could impose significant financial burdens. This comes at a time when the telecommunications sector is already grappling with economic challenges, including rising costs and foreign exchange instability.
ALTON highlighted that the updated structure, which requires non-quoted companies to pay dues based on their turnover, is unfairly disproportionate compared to quoted companies. For example, a non-quoted telecom company could pay up to N500 million in annual dues, while a publicly quoted company with the same turnover would pay much less, resulting in a stark disparity. ALTON urged the Financial Reporting Council (FRC) to reconsider this structure, particularly for companies in the telecom industry, and instead calculate dues based on profits or introduce a cap similar to the one for public companies.
The association proposed two solutions to mitigate the impact of the new payment scheme: calculating annual dues based on profit rather than turnover and reintroducing a cap on dues for non-quoted companies. ALTON emphasized the need for collaboration with the FRC to address these concerns and find a more balanced approach that supports the telecom sector while fostering growth and investment in the country.
Source: THE NATION