…Plans appeal to NASS
Broadcast media operators across Nigeria are mobilising to formally challenge a controversial 4% development levy embedded in the country’s newly introduced tax regime, warning that the charge could further strain an industry already battling high operating costs.
In a press statement issued yesterday, indigenous terrestrial and satellite television channels, alongside AM and FM radio stations, disclosed plans to write to the 10th National Assembly (NASS) demanding the expungement of what they described as an “illegally buried” levy in the new tax laws.
The broadcasters said uncertainty over the levy’s implementation has forced many operators to begin recalibrating their business models, re-evaluating overheads and exploring solar-hybrid power solutions to reduce heavy reliance on diesel-powered generators.
Although some business owners acknowledge that the 4 per cent development levy could help fund much-needed national infrastructure, they warned that the absence of clarity on its scope, calculation and tangible impact risks deepening the financial pressure on firms already stretched by inflation, soaring energy costs and structural inefficiencies.
For broadcast stations, the burden is particularly acute. Television and radio operations depend on energy-intensive studio equipment and transmission systems, while contending with rising electricity tariffs, escalating diesel prices and logistics expenses. These pressures are compounded by existing regulatory and statutory obligations, including a 2.5 percent charge on gross revenue, pay-as-you-earn (PAYE) deductions for staff, local government levies, business premises charges and waste management fees.
Industry sources said the cumulative effect of these charges threatens the sustainability of many stations, especially smaller indigenous operators.
The Incorporated Broadcasters Association of Nigeria, (IBAN), said its technical committee would closely examine the new tax law, noting that the levy would “inevitably” influence broadcast rate cards, potentially leading to modest upward adjustments in advertising costs. “The 4 percent levy has a broader effect. It raises the cost of doing business across the board”, an IBAN source said.
IBAN also indicated it would scrutinise how “assessable profit” is defined under the new regime, to determine whether member companies qualify as ‘small companies’ or ‘non-resident companies’, categories that are reportedly exempt from paying the levy.
According to the broadcasters, the levy is currently burdened by unanswered questions and regulatory ambiguity, with stakeholders insisting that only a transparent and well-communicated implementation framework can prevent further disruption across the media and wider business community.
Until then, industry players say they will press lawmakers to revisit the provision, warning that without urgent clarification or amendment, the levy could undermine investment, force cost-cutting measures and ultimately affect the quality and reach of broadcast services nationwide.
