Zdravstvuyte,
Victoria from Techpoint here,
Here's what I've got for you today:
- 5% tax on calls & data gets petition push
- How tappi works
- MTN SA steps up with biodegradable SIM cards
5% tax on calls & data gets petition push
The National Association of Telecoms Subscribers (NATCOMS) is getting ready to take legal action over the proposed 5% excise duty on telecom services. The case is still in court, with the next hearing scheduled for March 13, 2025, and NATCOMS plans to meet this Wednesday to organise a petition to the National Assembly.
They want to prevent any approval of the tax until the court rules, arguing that the government should respect the judicial process.
NATCOMS president Adeolu Ogunbanjo emphasised that implementing the tax while the case is pending would be unconstitutional and put an unfair burden on consumers, as telecom services are already hit with over 40 different taxes.
NATCOMS' legal adviser, Bayo Omotubora, also criticised the tax as a form of double taxation, saying it would hurt millions of Nigerians who rely on affordable telecom services.
The proposed excise duty is part of a larger tax reform bill, but many industry stakeholders, like the Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria, are strongly opposed to it. They argue that the tax would further strain both telecom operators and consumers.
ALTON’s chairman, Gbenga Adebayo, called it insensitive given the current economic challenges, while Tony Emoekpere from ATCON said the tax would only worsen the difficulties the industry is already facing.
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This 5% excise duty was initially introduced in 2022 during the Buhari administration but was suspended in July 2023 by President Bola Tinubu after backlash. Now, the government has proposed it again as part of a broader tax overhaul, which has sparked concern across the telecom sector.
How tappi works
You know those times when you’re trying to book an appointment with your barber or therapist, and it feels like pulling teeth? Or when you have to awkwardly juggle cash payments and reminders because they don’t have a digital system in place? Well, turns out you’re not alone — and someone’s finally stepped in to fix it.
Meet tappi, a startup created by Kenfield Griffith to solve the problem that service-based businesses have been dealing with for ages: the lack of digital solutions.
While tonnes of startups are helping retail businesses go digital with payment systems, platforms, and credit, service-based businesses like hair salons, therapists, or fitness coaches have been left in the dust.
Imagine this: your local barber or personal trainer offering you a subscription service that gets billed directly to your card every month. No more forgetting appointments or scrambling for cash.
Plus, they might send you a friendly reminder email, keeping you in the loop. With tappi, these businesses can make their services look more professional, keep loyal customers, and attract new ones.
Bolu and Griffith chatted all things tappi — how it works, what makes it stand out, and how it’s helping these service-based businesses thrive. Read it here.
MTN SA steps up with biodegradable SIM cards
MTN South Africa is stepping up its sustainability game with biodegradable SIM cards.
Why the move? Every year, the telecom industry produces about 180 million SIM cards in South Africa — three times the population! Many of these end up as waste, especially since prepaid users often switch networks for deals, leaving behind a trail of discarded SIMs.
MTN's new eco-friendly SIMs are made from FSC-certified materials, meaning they come from responsibly managed forests. These cards decompose in just 3-6 months when tossed in landfills, soil, or even the sea. Unlike traditional plastic SIMs, these don’t linger around forever but still offer the same connectivity, speed, and security.
According to MTN's Chief Commercial Operations Officer, Wanda Matandela, the company will start distributing these cards nationwide this month, December.
Other operators, like Telkom, Vodacom, and Cell C, have also tried reducing plastic waste with smaller SIMs or biodegradable packaging. However, the challenge remains — many people in the informal market regularly switch SIMs to grab the best deals, leading to high "churn" and piles of plastic waste.
There’s hope for a better solution with eSIMs, which are digital SIM cards embedded in newer devices. Adoption is still low due to limited device support, but operators are promoting awareness about recycling and offering sustainable disposal options for old SIMs.
While the shift to biodegradable SIMs and eSIMs is a step in the right direction, it’s clear the telecom industry still has a long way to go in tackling e-waste. What do you think — are biodegradable SIMs enough, or should eSIMs become the standard?
In case you missed them
- Only 3.1% of finance professionals in Nigeria earn above ₦1m a month
- AltSchool enters Europe with hybrid learning and AI-focused programmes
What I'm watching
- The End of China's Rise and the Future of World Order│Michael Beckley (Tufts University, Professor)
- The smartest people have mastered these 6 core skills | Michael Watkins for Big Think+
Opportunities
- Pitch your big idea at the Entertainment Week Lagos Deal Room, happening from December 11–15, 2024, at Livespot Entertarium, Ikate, Lagos. Apply here.
- Join Opeyemi Olugbemiro at Pitch Friday on December 13, 2024 and discover the art of storytelling that wins customers. Apply here.
- Flutterwave is currently looking to fill several vacancies. Apply here.
- Moniepoint is hiring for several roles. Apply here.
- Learn about Sleeping Sickness and other NTDs! Dial 421 on your Airtel line now — you won't be charged. You get 10 CALLS every month at zero charge. Afterwards, each call costs ₦10 regardless of duration. Alternatively, call 07080601391 at your network's regular rate.
- Follow Techpoint Africa's WhatsApp channel to stay on top of the latest trends and news in the African tech space here.
Have a wonderful Wednesday!
Victoria Fakiya for Techpoint Africa.
