Prof. Umar Garba Danbatta, Executive Vice-Chairman/Chief Executive Officer of NCC

NCC exceeds revenue projection by 400 percent, posts N150bn fees in 5 months

*The Nigerian Communications Commission says the spectrum charges generated in the first five months of 2021 reflect the telecoms agency’s significant contribution to the revenue drive of the Federal Government

Isola Moses | ConsumerConnect

As part of the agency’s sectorial contribution to the Federal Government’s revenue drive, the Nigerian Communications Commission (NCC) has disclosed it surpassed the N36 billion projected revenue from spectrum licence fees in this year.

Dr. Ikechukwu Adinde, Director of Public Affairs at NCC, in a statement Sunday, July 4, 2021, said the telecoms regulatory Commission recorded over N150 billion from this revenue source within the five months of the year.

The Director of Public Affairs explained the figure represented over 400 percent increase in revenue budget performance in respect of spectrum fees generated by the Commission between January 1 and May 31, 2021.

It is noted that the proceeds have reflected a significant contribution to the revenue drive of the Federal Government.

The statement said that the N150 billion spectrum revenue achieved in the first half of the year has been remitted to the Federal Government in line with the provisions of the Nigerian Communications Act (NCA) 2003.

The NCC stated that the NCA 2003 mandates the Commission to remit proceeds from spectrum resources wholly into the Nigerian Government’s Consolidated Revenue Fund (CRF).

According to the Commission, its 2021 Budget earlier considered and approved by the National Assembly (NASS) December 2020, had projected N36billion revenue from spectrum fees for the year.

However, the NCC has remarkably surpassed this estimate, said Dr. Adinde.

The Commission also stated: “Over the years, the NCC has put in place an effective regulatory regime which has significantly facilitated advancements in the country’s telecoms industry, boosted Gross Domestic Product (GDP), and improved the operations of licensees as well as boosted Federal Government’s revenue generation.”

Prof. Umar Garba Danbatta, Executive Vice-Chairman/Chief Executive Officer (CEO) of the Commission, while commenting on the revenue performance said that the impressive uptick in spectrum fee was the result of the favourable turn of events for the telecom sector.

Danbatta said though at the time of preparing the estimates for the 2021 Budget of the Commission last year, achieving this revenue performance seemed unrealistic due to the ravaging impact of COVID-19 on the global economy.

The 10-year spectrum fees made by some of the major operators directly impacted the projected spectrum fee favourably, he stated.

The NCC EVC/CEO emphasised that the Commission believes that enthronement of effective regulation will continue to improve the general performance of the telecoms sector in the country.

It is recalled that Prof. Danbatta, on October 28, 2020, had told members of House of Representatives Committee on Telecommunications that the NCC had generated and remitted N344.71 billion to the Federal Government’s CRF in the past five years.

Hon. Akeem Adeyemi, Chairman of the House Committee, during an oversight visit, also commended the NCC Management for the feat.

Adeyemi urged the telecom regulator “to sustain its regime of effective regulation of the telecoms sector in a manner that would be more mutually beneficial to the industry stakeholders, including the consumers of the telecoms services, the operators and the Nigerian Government.”

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