Home Business How NCC’s Sustained Regulatory Excellence is Rejigging Nigeria’s Economy

How NCC’s Sustained Regulatory Excellence is Rejigging Nigeria’s Economy

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Telecommunication plays a crucial role in today’s information society.  The vital importance of this dynamic sector for economic, social and cultural development cannot be over-emphasized.

A nation’s economic development depends largely on its overall progress in the Information and Communications Technology (ICT) sector.
In Nigeria, the telecommunications industry plays a pivotal role in the country’s economic well -being.
According to recent figures released by the National Bureau of Statistics (NBS), the Nigerian telecommunications sector added 16 per cent to NIgeria’s GDP in the second quarter of 2023 from a 14.13 per cent contribution in the first quarter of 2023, and up from the 15 per cent  it contributed in the second quarter of 2022.
Year on Year (yoy), the Nigerian telecommunications sector has continued to record significant contributions to Nigeria’s economy growth and development.
These achievements were made possible through effective regulatory initiatives put in place by the telecoms regulator, the Nigerian Communications Commission (NCC), under the able leadership of the Executive Vice Chairman (EVC), Prof. Umar Danbatta.
Under Danbatta’s watch, the NCC has recorded increased access to telecoms services, increased consumer education and protection, besides boosting security of life and property, while also supporting other initiatives aimed at boosting innovation in the telecoms sector and continuously galvanizing the country’s overall economic growth.
The increase in broadband penetration and Internet subscribers and many other achievements recorded under the leadership of Prof. Danbatta are testaments to how the telecom sector, regulated by the NCC he leads, has helped to improve national productivity.
Indeed, the NCC, headed by Danbatta,  has played a pivotal role in transforming and advancing the nation’s digital space. The EVC’s commitment to bridging the digital divide and creating employment opportunities in the telecommunications sector has helped to boost the economy.
Active telephone subscribers has increased from less than 150.7 million to 218.9 million, representing a teledensity growth of 115.70 per cent from 107.87 per cent in 2015, when Danbatta came on board.

Little wonder, the NCC and its leadership have continued to receive accolades nationally and internationally for promoting the deployment of telecommunications services to improve productivity and efficiency across different sectors of the Nigeria’s economy.

Below are highlights of some of the recent updates from the NCC:

Telecom Contribution to GDP Hits 16%

Through sustained regulatory excellence and operational efficiency by the Danbatta – led NCC, the telecommunications industry has grown in leaps and bounds over the past few years.

From the paltry 8 per cent contribution to GDP in 2015, when Danbatta assumed office as the EVC of NCC, the quarterly GDP has increased significantly to reach its current threshold of 16 per cent and  this has continued to positively impact all aspects of the Nigerian economy.

Speaking recently at the annual Telecom Executives and Regulators Forum (TERF) hosted by the Association of Telecom Companies of Nigeria (ATCON) in Lagos, the EVC stated that from a 14.13 per cent contribution in the first quarter of 2023, and up from the hitherto 15 per cent all-time-high record contributed in the second quarter of 2022, the telecommunications sector added 16 per cent to the national GDP in the second quarter of 2023 to set a new record.

Besides, following the authorization of more telecommunications companies to operate in the Nigeria’s telecoms sector, the investments profile has increased tremendously from $38 billion in 2015 to $75 billion currently and this keeps growing daily. From the sales of Fifth Generation (5G) C-Band Spectrum, the NCC has generated over $847.8 million for the Federal Government of Nigeria.

Other notable milestones and initiatives  recorded by the NCC under Danbatta’s leadership, aside the regulatory activities that culminated in the landmark launch of 5G services in Nigeria include the introduction of Spectrum Trading Guidelines, re-farming and re-planning certain spectrum band for efficiency, the emplaced collaborative process for the release of C-Band Spectrum by Nigerian Communications Satellite (NIGCOMSAT) Limited, and introduction of the Expanded Revenue Assurance Solution (ERAS) to address revenue leakages and improve government revenue from the telecoms industry.

These initiatives also include Licensing of Satellite Earth Stations, issuing of operating licence to SpaceX Satellite, facilitating the landing of additional submarine Cables, such as the Google 2,000km Equiano subsea Internet cable in 2022, listing of MTN on the Nigerian bourse, licensing of Mobile Virtual Network Operators (MVNOs), introduction of new unlicensed millimeter wave spectrum.

Also, as part of NCC’s commitment under Danbatta’s leadership, the Commission has endowed professorial chairs in Nigerian universities and committed over N500 million naira to Research and Development (R&D) in the telecoms sector. The creation of the Digital Economy Department, the mandate to drive the implementation of the indigenous telecoms sector growth through the operation of the Nigeria Office for Developing Indigenous Telecom Sector (NODITS), were also important strides made by the Commission.

Other consumer-focused initiatives of the Commission have also centered on the establishment of Emergency Communications Centres (ECCs) in over 30 States of the Federation and the Federal Capital Territory (FCT). All these centres are operational, as well as the creation of the Computer Security Incident Response Team (CSIRT). The EVC said these two initiatives have been helping consumers to  get succour in times of emergencies as well as ensuring effective protection for telecom consumers while online.

The Danbatta-led NCC has also taken very clear actions on consumer protection, advocacy, information-sharing and education. These include introduction of data roll-over just before the expiration of subscribed data plans, introduction of the 622 toll-free number for lodging service-related complaints to the Commission, the Do-Not-Disturb (DND) 2442 Short Code for tackling the menace of unsolicited text messages,  elimination of forceful/deceitful subscriptions to telecom services on mobile networks, tackling the issue of call masking, ensuring effective Subscriber Identity Module (SIM) registration, launching of National Roaming service and reduction of access gaps to telecom services from over 217 to 97, thereby enhancing access to telecom services by more Nigerians.

However, Danbatta said while the industry still faces a number of challenges such as vandalism, securing equitable Right of Way (RoW) from governmental stakeholders, as well as multiple taxation and regulation, the Commission has put framework in place to work with necessary stakeholders to overcome the obstacles possed by these challenges and to sustain the growth trajectory which has been the hallmark of telecoms sector as an enabler of socio-economic development in Nigeria.

Broadband Penetration on Fast-tract 

Nigeria’s target to achieve 70 per cent broadband penetration by 2025 is receiving renewed attention from the NCC, which promises 50 per cent before the end of 2023.

Giving an update on the broadband penetration at special media chat with executive editors and media chiefs in the northern part of the country recently, the EVC revealed that Fifth Generation (5G) services subscriptions have already hit half a million.

Danbatta said through effective implementation of NCC’s mandates under his leadership and cooperation of internal and external stakeholders since 2015, telecommunications industry in Nigeria has achieved remarkable milestones.

Through stimulating broadband infrastructure across the country, Danbatta said broadband penetration, which stood at 6 per cent in 2015 has increased significantly to 47.01 per cent as of July, 2023, enhancing over 89.73 million subscriptions on 3G, 4G and 5G networks in the country. Additionally, general Internet subscriptions have reached 159.5 million up from less than 100 million in 2015.

While acknowledge the challenges encountered by the industry as well as the barriers to broadband deployment in the country, ranging from the issue of right of way (RoW), fibre cuts, high capital requirement for deployment, multiple taxations and regulations, among other chchallenges, the EVC noted that the NCC is navigating regulatory complexities, digital divide and literacy, security concerns with firmness and increased collaborations with necessary stakeholders such as ATCON to create measures towards tackling the challenges.

Sustaining Digital Economy and Transformation Drive

Countries around the world including Nigeria are exploring policies to stimulate growth and create new jobs due to the COVID-19-induced economic downturn and continued volatility. Information and Communications Technology (ICT) is one of the fastest-growing industries because it triggers the creation of millions of jobs and therefore an enabler of innovation and socio-economic development.

Under Danbatta’s leadership, the NCC, has continued to drive initiatives that accelerate the deployment of digital infrastructure, in order to enhance the economic transformation of Nigeria.

As the telecoms secror regulator in Nigeria, the NCC has continued to show commitment to bridging the digital divide and creating employment opportunities in the telecommunications sector, which has helped to boost the economy.

The NCC has been at the heart of providing the digital impetus for transforming businesses and sustaining socio-economic activities in Nigeria.

Besides, the Commission has continued to work assiduously with various stakeholders to see how more businesses can embrace digital platforms for delivering their services to the consumers.

Aside from accelerating digital infrastructure, NCC is also paying attention to ensuring a level-playing ground for operators to promote investment and the delivery of innovative services to individual consumers, small and medium enterprises (SMEs), and big business owners by ensuring enhanced consumer quality of experience.

The commission is committed to ensuring the consumers protected. To this end, the agency constantly updates consumers on how to be protected to prevent cases of online fraud while using their internet legitimately.

 

Addressing Multiple Taxation and Rev Up Reforms To Boost Telcom Sector

Through its world class programmes and unrivalled initiatives, the NCC has put in place requisite reforms to strengthen Nigeria’s communications sector with a view to further boosting her GDP.
Also, the Commission is working assiduously with other stakeholders to eliminating multiple taxation and regulations impacting the Nigerian telecommunications industry.
Addressing stakeholders at a recent combined second and third quarters 2023 meeting of the Industry Working Groups (IWG) on multiple taxation and regulations in the telecoms sector, the NCC’s Executive Commissioner, Stakeholder Management, Adeleke Adewolu said the IWG’s activities are geared towards ensuring fair tax policies and eliminating every incident of multiple taxation and regulations impacting the Nigerian telecommunications industry.
He stated that a lot of milestones have been recorded by the industry since the establishment of the IWG over two decades ago, as the platform has proven to be effective in articulating industry concerns in this area and also proffering solutions to these issues.
“Considerable industry gains have been recorded lately, particularly as it relates to the issue of multiple taxation. For instance, His Excellency, President Bola Ahmed Tinubu recently signed Four Executive Orders designed to curb multiple taxation in the Country.
“Key amongst them is the Executive Order for the suspension of the five per cent Excise Duty on telecommunication services as well as Excise Duties escalation on other locally manufactured products,” Adewolu said.
He described the gains as laudable as, according to him, they continue to serve as inspiring landmarks for the industry, underscoring what can be achieved when the entire industry come together harmoniously to speak with one voice on existential concerns undermining the economic health of the communications industry.
However, the Executive Commissioner said there remains a lot of work to be done as the industry was still beguiled by arbitrary Right of Way (RoW) charges, hidden nuisance taxes and unauthorised regulatory encroachment into the communications industry.
As such, he said the Commission has continued to work assiduously to ensure harmonisation of RoW charges across the country.
He said aside several existing agencies the Commission has been working with, it is also collaborating strategically with sister agencies such as the Federal Inland Revenue Service (FIRS), in line with the National Economic Council (NEC) resolution of 2012 and the Nigerian Maritime Administration and Safety Agency (NIMASA).
“We are also working with the Nigerian Mainstream and Downstream Petroleum Regulatory Authority (NMDPRA), all in a bid to ensure the regulatory actions taken by the agencies are well synchronised with the regulatory objectives of the Commission, in a manner that boosts market development and industry sustainability,” he said.
While tasking telecom licensees to continue to bring burning issues on multiple taxation and regulation to the attention of the Commission as they experience in their daily operation, Adewolu also assured them of NCC’s decision to always make necessary regulatory intervention to boost industry growth.
Adewolu noted that the Commission is always inclined to executing the requisite reform that will strengthen the Communications Sector and deepen market development.

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