Telecom
NCC Begins Implementation of Accounting Separation Framework in Telecoms Industry
The Nigerian Communications Commissions (NCC) has commenced the creation of an enabling environment for competition among operators in the industry to ensure the provision of qualitative and efficient telecoms services as stipulated in Nigerian Communications Act (NCA), 2003.
In order to further ensure transparency and accountability in regard to effective regulation and prevention of anti-competitive behaviour, the NCC has also commenced the implementation of the Accounting Separation Framework (ASF) in the Nigerian telecoms industry effective from July 15, 2020
The policy document, “Determination on the Implementation of an Accounting Separation Framework for the Nigerian Telecoms Industry”, which was developed via a consultative process in 2015, has undergone a comprehensive review by the regulator in collaboration with telecoms licensees and other critical industry stakeholders.
With the commencement of the implementation of the framework, telecoms licensees are, henceforth, obligated to submit their Regulatory Financial Statement (RFS) to the Commission in line with the new ASF, within seven months after the end of the licensees’ financial year.
Prof. Umar Danbatta, the Executive Vice Chairman of the NCC expressed optimism about the framework noting that “the new ASF will promote an industry environment that fosters open and transparent financial reporting, while ensuring that charges for telecom services are cost-based and non-discriminatory.”
The Commission, however, stated that submission of RFS in line with the new framework, is currently limited to and mandatory for only six telecom licensees, adding that this will subsist for an initial period of two years after which the regulator may review the list to include other operators.
The six licensees include Airtel Nigeria, MTN Nigeria, Emerging Markets Telecommunications Services Limited (9Mobile), Globacom Nigeria, Main One Cable Company Limited and IHS Nigeria.
Adducing reasons for limiting compliance to six operators for now, the Executive Vice Chairman (EVC) of NCC, Prof. Umar Garba Danbatta, said the decision was taken to ensure necessary structure is in place for reviewing and analysing the accounts before applying the new framework to all licensees in the industry.
Danbatta, however, stated that any other licensee willing to prepare its financial statements in line with the new framework is allowed to voluntarily do so, just as he said the Commission may exercise its discretion to demand that a licensee prepare and submit separated account where it is determined that the activities of such a service provider are deemed critical to the overall well-being of the Nigerian telecoms industry.
Therefore, for full and effective implementation of the Framework, every operator under the ambit of accounting separation is required to prepare an Operator-specific Accounting Separation Manual (OASM) containing policies, principles, methodologies and procedures for accounting and cost allocation, which must be submitted to the Commission on or before October 30, 2020 for regulatory approval.
Licensees shall also be required to prepare their financial and non-financial reports in line with the Guidelines for the ASF while reports shall be furnished by the licensees for every account year beginning from the 2020 financial year end.
Also, as part of operators’ licensing conditions, the Commission requires licensees to prepare, in respect of each complete financial year or of such lesser periods as may be specified, separated accounting statements for all their activities.
According to Danbatta, the Commission considers the Accounting Separation Framework “as an effective, least evasive and less costly solution to implement to meet its regulatory objectives”, adding that the implementation of the Framework is also a key deliverable for the Commission in the new National Broadband Plan (NBP), 2020-2025.”
The EVC added that the Commission took into consideration the inputs from industry stakeholders and has provided capacity-building for operators and for relevant staff of the Commission to ensure seamless implementation of the Framework.
Danbatta further reiterated the commitment of the Commission towards continually developing policies, initiatives and programmes aimed at boosting healthy competition among telecoms operators in the country to ensure that consumers continue to enjoy efficient and affordable telecom services.
Telecommunication companies have threatened to withdraw their Unstructured Supplementary Services Data (USSD), services from banks over what they called misinformation.
MTN Nigeria, Airtel, Globacom and 9Mobile- the telcos disclosed that the banks’ notice to their customers on the new billing system and airtime deductions for USSD services was misleading.
Also, Association of Licensed Telecom Operators of Nigeria (ALTON) also denied that the directive was from the Nigerian Communications Commission (NCC).
USSD is done via shortcodes on mobile phones and allows bank customers to make transactions in places with limited or no internet service.
Recall that banks earlier this week claimed that NCC has directed them to begin charging them from their airtime rather than from customers’ accounts.
The notice from the banks read in part: “In line with the directive of the Nigerian Communications Commission (NCC), please be informed that effective June 3, 2025, charges for USSD banking services will no longer be deducted from your bank account.
“Going forward, these charges will be deducted directly from your mobile airtime balance in accordance with the NCC’s End-User Billing (EUB) model.
“Under this new billing structure, each USSD session will attract a charge of ?6.98 per 120 seconds, which will be billed by your mobile network operator.
“You will receive a consent prompt at the start of each session, and airtime will only be deducted upon your confirmation and availability of the bank to fulfil this service.
“If you do not wish to continue using USSD banking under this new model, you may choose to discontinue use of the USSD channel.”
Reacting, ALTON, umbrella body of telecom operators in Nigeria, said the banks’ notice is a gross misinformation deliberately hatched to suit their selfish interests.
Hence they threatened to withdraw network support to the banks’ USSD services.
Engr Gbenga Adebayo, chairman of ALTON told Vanguard: ” I don’t understand why the banks are twisting agreements and distorting information just to favour their selfish interests. In the first place, the information wasn’t a directive from the NCC but a joint regulatory agreement between the NCC and the Central Bank of Nigeria, CBN witnessed by the telcos and the banks. The agreement was that if the banks finally cleared all USSD debts owed to the telcos by June 2, 2025, they are free to migrate to the end-user billing method, so long as the model of migration is transparent and agreed upon by the telcos.
“The reason for that clause was because the telcos insisted that the process of migration is such that will not allow a customer to be billed twice; in other words, that a subscriber would not have his airtime deducted and also have his or her money deducted for same services from his or her bank account.
” As we speak, some of the banks have cleared their debts, but the majority are yet to do so. So, even if all the modalities of migrating to end-user billing have been perfectly carried out, the implementation cannot even begin because the banks are yet to clear the USSD debt owed to the telcos.
“Our position now is that if that is the way the banks want to treat the agreement, we may withdraw support for their USSD services. It is not a must-have. They can do without it. But, they should clear the debts as agreed,” he added.
MTN Nigeria has announced plans to embark on a massive capital expenditure (CAPEX) drive in 2025, committing nearly N900 billion to significantly enhance network service quality across Nigeria.
Dr. Karl Toriola, CEO, MTN Nigeria,
The substantial investment, more than double the combined CAPEX of approximately N440 billion spent in 2023 and 2024, underscored MTN’s aggressive strategy to address persistent service quality issues and meet growing customer and regulatory expectations.
Dr. Karl Toriola, CEO, MTN Nigeria, detailed this unprecedented financial commitment during a recent interview on Arise TV, emphasizing that improving service quality is the company’s paramount message for the year.
He highlighted a clear understanding and expectation from both the Nigerian Communications Commission (NCC) and security agencies for improved network quality.
A primary focus of this increased CAPEX will be on putting additional capacity in a city like Lagos, particularly in Abuja, where you have a lot of buildings coming up, you need additional sites because there are coverage issues.
Beyond these critical urban centers, the investment aims to bolster network resilience and ensure power stability for its infrastructure nationwide.
This includes proactively addressing site outages by ensuring timely payment for operational necessities such as diesel for generators, a persistent challenge in the Nigerian operating environment.
Toriola outlined a comprehensive upgrade process, which involves placing orders formally, opening letters of credit, and then the equipment gets shipped in and installed.
He added that MTN will be acquiring new sites and laying fiber to the base station to create better stability” where necessary.
While the immediate CAPEX is geared towards improving existing service quality and capacity, this investment aligns with MTN’s broader goals of enhancing financial inclusion in underserved rural areas, suggesting a long-term vision for network expansion and service improvement that extends beyond metropolitan areas.
Subscribers can anticipate tangible improvements in service quality, with a significant improvement in quality of service expected by the end of the second quarter or early in the third quarter of 2025, according to Toriola.
“This year is all going to be about capital expenditure on an aggressive basis to fix quality of service issues (and) meet both the regulators’ and the public’s expectations,” he affirmed, reiterating MTN’s steadfast focus on customer experience through substantial capital investment.
Telecom regulators and industry leaders from across the Middle East and Africa gathered in Cairo last week to chart a data-driven future for the region.
In a region where digital transformation is accelerating at unprecedented speed, connectivity intelligence firm, Ookla and Egypt’s National Telecom Regulatory Authority (NTRA) joined forces to organise the Telecommunications Regulatory Summit
Themed ‘Harnessing Data and Technology for Superior QoS’, the summit focused on how data, particularly crowdsourced insights, can transform regulatory strategies across the region.
The summit attracted stakeholders from over 30 countries, including delegates from the International Telecommunication Union (ITU) and World Broadband Association (WBBA), who engaged in high-level discussions on optimising network performance and accelerating digital inclusion.
Karim Yaici, lead industry analyst for the Middle East and Africa at Ookla, said the event set the tone for the growing value of data-driven decision-making.
“Access to and the use of crowdsourced data contribute to making more informed decisions, fostering transparency and ensuring that citizens in the MEA region benefit from high-quality, accessible and affordable connectivity,” he said.
The experts underlined that crowdsourced data is becoming a critical complement to traditional regulatory methods.
They agreed that it helps identify service gaps, prioritise infrastructure investments, and drive innovation.
With broadband speeds now closely tied to GDP growth and productivity, accurate performance data is seen as key to socio-economic advancement.
Dr. Hossam Abdel-Mawla, vice-president of technical affairs and quality of service at NTRA, stressed that the summit was pivotal in fostering regional collaboration.
“By actively sharing best practices and exploring innovative data-driven strategies, we are shaping a future where telecom regulations ensure digital inclusion and economic growth across the region,” he said.
In a key session, Ahmed Nabawy, director of client services at Ookla, presented findings on 5G performance in Egypt and Tunisia.
He demonstrated how Ookla’s unified data platform, powered by AI, enables operators to analyse 5G-capable device density and prioritise high-impact rollout areas.
The summit also explored the shift from conventional network quality metrics to more user-centric Quality of Experience models. These advanced analytics tools promise to enhance transparency, improve accountability, and ultimately deliver better connectivity experiences for all.
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