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NCC Remits N150bn Generated from Spectrum Fee to FG

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By Modupe Gbadeyanka

Not less than N150 billion has been generated as spectrum fee in five months by the Nigerian Communications Commission (NCC).

A statement issued on Sunday by the agency’s Director of Public Affairs, Mr Ikechukwu Adinde, disclosed this amount surpassed the N36 billion projection by 400 per cent.

The increase, according to the NCC, reflects a significant contribution to the revenue drive of the federal government. It was stated that the funds have been remitted to the government in line with the provisions of the Nigerian Communications Act (NCA), 2003, which mandates the commission to remit proceeds from spectrum resources wholly into the government’s Consolidated Revenue Fund (CRF).

The agency, in its 2021 Budget which was considered and approved by both chambers of the National Assembly in December 2020, projected revenue of N36 billion from spectrum fee for the year 2021 but has remarkably surpassed this estimate.

Over the years, the NCC has put in place an effective regulatory regime that has significantly facilitated advancements in the nation’s telecoms industry, boosted Gross Domestic Product (GDP), and improved the operations of licensees as well as boosted the federal government’s revenue generation.

Commenting on the revenue performance, the Executive Vice Chairman of the Commission, Prof. Umar Garba Danbatta, said that the impressive uptick in spectrum fee was the result of the favourable turn of events for the telecom sector, which at the time of preparing the estimates for the 2021 budget of the commission was not clear due to the ravaging impact of COVID-19 on the global economy.

Mr Danbatta noted that the 10-year spectrum fees made by some of the major operators directly impacted the projected spectrum fee favourably, adding that the commission believes that the enthronement of effective regulation will continue to improve the general performance of the telecoms sector.

On October 28, 2020, Mr Danbatta told members of the House Committee on Telecommunications while on an oversight function to the commission that the NCC had generated and remitted N344.71 billion to the Federal Government’s CRF in the last five years.

During the oversight visit, the Chairman of the Committee, Mr Akeem Adeyemi, commended NCC’s management for the feat and urged the commission “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.”

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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Telco Subscribers Threaten to Sue Over 50% Tariff Hike

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By Adedapo Adesanya

An association representing the interest of telecommunication subscribers in Nigeria has rejected the 50 per cent tariff increase announced by the Nigerian Communications Commission (NCC) and has threatened legal action.

On Monday, the NCC approved a 50 per cent tariff increase for telecom operators in the country, the first since 2013.

The 50 per cent call was lower than the 100 per cent recommended by the other stakeholders, including the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), which has members like MTN and Airtel.

Now in response, the National Association of Telecoms Subscribers (NATCOMS) has faulted the move, saying the 50 per cent was too high and called for another review.

The association’s president, Mr Deolu Ogunbanjo, said on Channels Television’s Lunchtime Politics, monitored by Business Post on Tuesday, that the body would approach the courts if there’s no reversal.

He noted that Nigerians are already bearing the brunt of a cost of living crisis, adding that the 50 per cent hike which was supposed to reprieve from the initial 100 per cent recommendation, was still not acceptable.

“It is not it at all. It is so much for subscribers to bear. Already, we are grappling with a lot of things that are surrounding the business climate here… fuel cost, electricity cost, and all that… you are now looking at telcos asking for 100 per cent and NCC now is granting them 50 per cent It is a no-no,” he said.

“We are definitely not going to accept this,” he declared.

The NCC, announcing the hike on Monday, said the increase was pursuant to its power under Section 108 of the Nigerian Communications Act, 2003 (NCA) to regulate and approve tariff rates and charges by telecommunications operators.

“…Over 100 per cent requested by some network operators was arrived at taking into account ongoing industry reforms that will positively influence sustainability.

“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024,” the announcement statement noted.

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NCC Approves 50% Hike in Call, SMS, Data Tariffs

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By Adedapo Adesanya

The Nigerian Communications Commission (NCC) on Monday approved a 50 per cent tariff increase on calls, SMS, and internet data for telecoms companies in the company.

This comes after telcos suggested a 100 per cent hike in the tariffs, the first of such changes in over 10 years.

Despite the recommendation, the NCC was concerned about the impact this would have on Nigerians, who are battling a cost of living crisis.

The NCC rationalised the 50 per cent hike, saying it wanted to strike a balance between protecting consumers and ensuring the industry’s sustainability.

“The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” a statement from the NCC read on Monday night.

Recall that the Minister of Communications, Innovation and Digital Economy, Mr Bosun Tijani, has said the federal government may consider between 30 and 60 per cent hike in tariffs.

“I think it should not be more than anywhere between 30 and 60 per cent,” he said during an interview recently.

On his part, the Chief Executive Officer of MTN Nigeria, Mr Karl Toriola, said telcos are proposing a 100 per cent increase in tariffs to the Nigerian government.

He, however, pointed out that it won’t get such approval but said a substantial change, beneficial to all stakeholders, could be agreed upon.

It is not certain what the reaction of the telcos may be concerning this new development. If they disagree with the approval, it may lead to another round or dialogue or limitation of service offerings.

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Nigerians Hail Acceptance of Naira for AWS Cloud Subscription

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By Modupe Gbadeyanka

The acceptance of the Naira for payments for cloud services in Nigeria by global cloud leader, Amazon Web Services (AWS) has continued to excite its customers in the country.

Before now, Nigerians subscribing to the company’s cloud services were forced to purchase foreign currencies, particularly the United States Dollar (USD).

But to make transactions easier for its teeming clients in the country, AWS announced it was now accepting payments in local currency.

“With payments in their local currencies, customers can avoid foreign exchange costs associated with making foreign currency payments.

“This also removes payment friction for customers in countries where local regulations put limits on the foreign currency amount a customer can access,” the American firm said in a statement.

By lowering the barrier for Nigerian companies to pay for cloud services in their local currency, AWS has given itself an edge, but the growing local alternatives may still present a challenge.

The organisation said it is not just about price anymore—it’s about local relevance and helping businesses navigate the complexities of Nigeria’s economic environment.

The decision of AWS to accept naira payments comes in response to the growing appeal of local cloud providers in Nigeria.

Recall that in January 2023, the firm launched its AWS Local Zones facility in Lagos to reduce latency and improve performance for Nigerian businesses—often an important factor since many Nigerian companies host their services in AWS’s European region due to geographical proximity.

By offering a new payment option alongside this infrastructure, AWS can solidify its foothold in the Nigerian market, especially as local providers continue to present an attractive, economically aligned alternative.

“This is a welcomed development. We have been waiting for this to happen for a long time. I am glad it has finally become a reality. I don’t need to buy forex (foreign exchange) to pay for Amazon cloud services,” a tech enthusiast based in Lagos, Mr Kolade Adewale, told Business Post.

“I want to believe that the competition from Microsoft’s Azure may have forced AWS to include the Naira as a payment option. This is what competition does to the market. You can see such in the telecommunications and petroleum sectors with Dangote Refinery,” another tech enthusiast, Mr Goke Fashina, said.

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