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CBN Lacks Powers to Order MTN to Refund $8.1Bn- ATCON

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Association of Telecoms Companies of Nigeria (ATCON) has said that the Central Bank of Nigeria (CBN), has no powers to order MTN Nigeria to refund $8.1billion.

 

ATCON said that the cash in question belongs to MTN in the first place and wondered what the CBN wants to achieve by its order.

 

Recall that the CBN accused MTN of untidy business transactions involving alleged repatriation of $8.1billion which it ordered the carrier to refund, while the Office of the Attorney General of the Federation has also issued demand notice of $2billion unpaid taxes over a 10-year period to the telco.

 

Four local lenders alleged to have facilitated the repatriation were also sanctioned by the apex bank but MTN has strongly denied both allegations, adding that it had the clearance of the apex bank and a clean bill of record with the tax authorities.

 

But Oulsola Teniola, president, ATCON, said the industry does not understand what the CBN intends to achieve by the directive to an operator on which it has no regulatory oversight.

 

He said: “It is very important to note that the figure referred to has almost been fully paid by MTN and that the $8.1billion doesn’t belong to CBN but belongs to MTN. So, on this basis, it is hard to understand  what CBN seeks (to achieve) by its demands on MTN that it doesn’t have regulatory oversight over.”

 

On how the logjam could be resolved, he said dialogue and transparency would do the magic.

 

“Clarity, transparency and continued dialogue among  CBN, the banks and MTN to amicably resolve this matter in the interest of the wider stakeholder community, especially, potential investors closely watching developments on this issue.

 

“At the moment, processing of CCIs (Certificate of Capital Importation) is shrouded in confusion in what should be a relatively straight forward process in between the banks and CBN their regulator.

 

According to him, there is no likelihood that MTN refund such huge cash because of its timing.

 

He said: “A refund is very unlikely. The size of the demand and timing is unreasonable and not in the interest of the country. After all, the Naira equivalent will have to be returned to MTN Nigeria. It is then an interesting situation that this seeks to redress events that occurred when CBN had full oversight and approved the transactions. How do they intend to do that?”

 

According to Teniola, the matter should be between the banks and the apex bank and not necessarily the banks’ customers (MTN).

“This I believe is a matter that should be in between the banks and CBN and not the client of the banks. NCC may decide to intervene if events unfold that threaten the survival of MTN and the telecom industry that they regulate. For now, it is too early to see which way this will take,” he said, adding, however, that he is not in an official capacity or position to quantify or qualify the impact of the development to corporate brand of the telco.

 

“I fully believe MTN will continue to engage with the relevant authorities to resolve this latest setback,” Teniola said.

 

CBN, had in a letter to MTN, said its investigation revealed that the shareholders of the telco invested $402,590,261.03 in the company from 2001 to 2006, which was carried out through the inflow of foreign currency cash transfers and equipment importation, as evidenced by the CCIs issued by Standard Chartered Bank (SCB), Citi Bank (CB) and Diamond Bank (DB);  and the CCIs issued at the time of the investment by the above banks to MTN for $402,590,261.03 showed that $59,436,923.44 was invested as shareholders’ loan and $343,153,339.56 as equity.

 

“However, a review of your organisation’s financial statements for the year ended December 31, 2007 revealed that $399,594,146.00 was recorded/invested as shareholders’ loan and $2,996,117 as equity investment, in accordance with the shareholder’s agreement but contrary to the CCIs issued by the banks

 

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NCC to Order Telcos to Refund Illegal Deductions from Subscribers

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Nigerian Communications Commission (NCC), said it may soon order telecommunication operators to refund illegal deductions from subscribers.

 

Prof Umar Danbatta, executive vice chairman, EVC, NC, said the illegal deductions were made in five months.

 

He said 58,965,478 total Active Broadband Subscription on 3G and 4G platforms was recorded as at November 2018.

 

Danbatta explained that Internet subscription grew from 107,547,723 in October 2018, to 108,897,679 in November 2018, while Active Voice Subscriber base grew from 165,239,443 in October 2018 to 169,104,830 in November 2018.

 

The commission also disclosed that Nigeria has exceeded 30 per cent broadband penetration target, as it the record stood at 30.9 per cent in November 2018.

 

Danbatta who was represented by Sunday Dare, executive commissioner, Stakeholders Management, said Nigeria would achieve close to 50 per cent broadband penetration by 2019.

 

According to him, contributions of Telecommunications and Information Services to GDP from Q1 to Q3 2018 were N4.7 trillion, according to figures released by the National Bureau of Statistics (NBS).

 

In the last quarter (Q3, 2018), the amount stood at N1.5 trillion, according to Q3 figures reported by the NBS.

 

Danbatta said that Telecommunications and Information Services Sector grew by 14.7 per cent from Q1, 2017 to Q3, 2018.

 

The NCC has also promised to reduce call masking across the nation by 80 per cent before 2020, noting that about N6 billion is lost yearly to call masking

 

The executive vice chairman disclosed that tracking technology has made the commission to reduce call masking by 21per cent as at August 2018, even as nine offenders have been arrested.

 

He said the commission had in the last six months, took proactive measures through investigation and efforts to reduce incidents of SIM boxing in the country by 32 per cent.

 

According to Dambatta, call masking/refilling occurs when an international call is terminated in Nigeria as a local number.

 

He stressed that perpetrators have ulterior motive of profiting from price differentials between international and local calls termination rates.

 

He added that a SIM box has the capacity to receive and transmit calls undetected.

 

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Danbatta Reaffirms Commitment to Provision of Broadband Infrastructure

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L-R: Aremu olajide, chairman, Technical Committee, Reprsentating ALTON Chairman, Mr Emma Okonji, Chairman, Nigeria Information and Communications Technology Reporters Association (NITRA) and Dr. Henry Nkemadu, Deputy Director./ Head, Special Intervention Projects, NCC at the 4th Quarter Seminar/Induction Ceremony of the Nigerian Information Technology Reporter's Association (NITRA) held in Lagos

Prof. Umar Garba Danbatta, Executive Vice Chairman/Chief Executive Officer, Nigerian Communications Commission on Friday reemphasized the commissions’ commitment in ensuring the provision of broadband infrastructure across the country to achieve last-mile connectivity.

 

He stated this at the 4th Quarter Seminar/Induction Ceremony of the Nigerian Information Technology Reporter’s Association (NITRA) held in Lagos.

 

The events theme was: ‘Achieving Last-Mile Connectivity through Affordable Broadband’.

 

Danbatta, who was represented by Dr. Henry Nkemadu, Deputy Director./ Head, Special Intervention Projects, NCC noted that Nigerian Communications Commission will ensure the provision of broadband infrastructure across the country to achieve last-mile connectivity.

 

He added that Communications Sector is a catalyst that would provide the needed infrastructure that will enable other sectors of Business, Education, Health, Agriculture, Governance, Finance to thrive.

 

According to him, “the Communications Sector provides the infrastructure to enable other infrastructures in the different sectors of Business, Education, Health, Agriculture, Governance, Finance and so on.

 

“The importance of this sector has continued to enhance human capabilities such as healthy life, knowledge, creativity, collaboration, innovation, self-organization and participation in the social, economic and political life of the country as well as impact on economic growth through productivity gains.”

 

He also revealed that the commission’s activities have impacted on efficient improvements in service delivery that enable national development.

 

Danbatta explained that telecommunication acts as an enabler to drive socio-economic growth, developments and modernization across all sectors of the economy.

He added that robust and reliable telecoms service lies on adequate broadband infrastructure which will provide the needed impetus to achieve last mile connectivity.

 

He further stated that the Commission has made plans for massive deployment of 5G infrastructure in the country.

 

He said, “At the Stakeholders Consultative Forum on 5G Readiness and High Altitude Platform Station Technologies in Abuja recently, the Commission announced its plans for massive deployment of infrastructure for the new technology.

 

“5G has the potential to be transformational for communities in Nigeria because of the set high requirements for 5G networks: fast, ubiquitously available services provided by infrastructure deployed across all regions.

 

“The 5G technology has significantly faster speeds and more reliable connections on smartphones and other devices.”

 

Mr Emma Okonji, Chairman, Nigeria Information and Communications Technology Reporters Association (NITRA) while delivering it opening speech said that broadband infrastructure is an enabler for economic and social growth in a digital economy.

 

He commended the 15 member committee inaugurated by former president Goodluck Ebele Jonathan to draw up national broadband strategy for a work well done.

 

He further commended NCC for achieving the 30 percent broadband penetration target that was set from 2013 to 2018.

 

Okonji extolled Danbatta’s passion for broadband development in the country, adding that it has further deepened broadband penetration and grew it to the 30.9 percent that we currently achieved.

 

Engr Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON) decried the hostile business environment in the country, noting that it’s the reason why CDMA Company’s died.

 

He therefore called on the media to help in sustaining the environment by ensuring accurate reportage of the sector.

 

Adebayo, who was represented by Engr Aremu Olajide, chairman, Technical Committee, appealed on the media to always research on some of the laws being implemented by the state governments and ask questions on the areas of irregularities, citing the tax disputes between the Kogi government and mobile network operators as an example.

 

He condemned the multiple taxation Telco operators are being subjected to in the industry.

 

He further called on the support of the association in sustaining the industry through effective reportage.

 

Also speaking at the event, Dr. Ayotunde Coker, Managing Director of Rack Centre, said that cloud technology will transform Nigeria and Africa if we deploy it in sachet format.

 

He added that Nigeria run what he called a sachet economy, where we buy things in sachet form, stressing that deploying cloud in sachet format will ensure that it gets to the citizenry easy and faster.

 

 

 

 

 

 

 

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NCC Says Nigeria Loses $60Bn Annually to Call Masking

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The Nigerian Communications Commission (NCC), said the Nigerian telecom industry loses about $60 billion dollars annually to call masking. Call masking is a process where international calls are terminated as local calls.

This NCC said has posed serious threat to the telecom industry but noted that the Commission has proffered solution to the problem.

Prof Umar Danbatta, executive vice chairman of NCC, dropped the hint on Thursday at the 86th Edition of Telecom Consumer Parliament (TCP), entitled: “Overcoming Challenges of Call Masking/Refiling: Task Ahead for the Telecom Industry, on Thursday in Abuja.

Danbatta, who spoke through the Executive Commissioner Stakeholders management, Sunday Dare, noted that globally $54-$60 is lost to call masking but added that the Commission is taking proactive measures to curb the menace.

He said: “We don’t have the exact figures for Nigeria but globally $54-$60 is lost to call masking. This shows that it is a global menace which is not specific to Nigeria and it is possible because of innovative technology that is available.

“We talk about the VIOP which is Voice Over Internet Protocol, we talk about the OTT; Over The Top platforms where you do WhatsApp and all other video calls. These are innovations and technologies that allows for some of this to happen.”

“But we are happy to say for the last eight months, the NCC took very proactive measures, through investigations, we worked with our taskforce to have been able to reduce the incidence of sim boxing in this country by 34%.

“When you look at the roadmap so far, 2016, it started, in 2017, we started investigations. We moved from reducing it to 24% to 34%. I think the most critical point is; we have tried to look for a technological solution to solve what is a slight technical problem.

” As I speak, we have found a solution after the prove of concept. That solution has been tried in Lagos South West and about nine people have been arrested in the basement of a house and a few cars in which you have the boxes in their booths.

“We have tried that concept, it is working and we hope to launch it in January. If it is launched in January; I can assure Nigerians that before the end of 2019, we would have had 80% reduction in call masking,” he explained.

The EVC then called on the public not to hesitate to report cases of call masking to NCC, promising that appropriate measures would be taken against such persons.

Earlier in her welcome address, the Director Consumer Affairs Bureau, Mrs Felicia Onwuegbuchulam, stated that the forum allows for face to face encounter with the public and Stakeholders in the telecom industry and the theme is aimed at ensuring national security and a level playing ground for all telecom licensees.

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