Telecom
NCC, Stakeholders Chart New Path to Effective Telecoms Regulation, Industry Growth
The Nigerian Communications Commission (NCC) has hosted the second edition of the Nigerian Telecoms Leadership Summit, in line with its tradition and commitment to engage with stakeholders in the telecom ecosystem with a view to pursuing proactive regulatory interventions targeted at ensuring an enabling operating environment and improving investment climate in the Nigerian telecom industry.
The event, which took place at the Eko Hotels, Victoria Island, Lagos, was an assemblage of key industry stakeholders with the central objective to analyse the current state of the sector, process the issues, and chart new pathways to a more effective and sustainable regulatory regime for the stability and growth of the Nigerian telecom industry.
Speaking at the event, Prof. Umar Danbatta, executive vice chairman and chief executive officer of the NCC, said that the theme of the Summit: “The Future of Telecom Regulation in Nigeria,” presented a unique opportunity for the Commission to interact with critical stakeholders.
Through such interaction, the EVC said the Commission would be able to brainstorm and migrate to new frontiers of visionary regulations that will galvanise and foster desired growth in the industry.
Danbatta explained that the outbreak of the COVID-19 pandemic triggered political and socio-economic uncertainties globally and underscored the crucial role of digital connectivity in keeping societies functioning, as the online life became, essentially, new way of life.
He stated that with the increased dependence on digital platforms, the theme of the event had become necessary in order to put in place a broader regulatory framework that will enhance and protect the integrity of the industry in the emergent digital economy.
In this context, the EVC said the NCC will continue to diligently pursue the implementation of policy frameworks such as Nigeria National Broadband Plan (NNBP) 2020-2025; and the National Digital Economy Policy and Strategy (NDEPS) 2020-2030 which are consistent with NCC’s regulatory interventions such as the Commission’s Strategic Management Plan (SMP), 2020-2024 and Strategic Vision Plan (SVP), 2021-2025, among others.
Danbatta said all the policy and regulatory frameworks principally seek to provide a platform for Nigerian citizens to engage in innovative developments for the telecoms industry and improve the nation’s ability to compete in the ever-competitive global space.
Explaining further on the transformation happening as a result of the expanding spectrum of digital ecosystem, Danbatta said the industry is witnessing new business delivery and breakthroughs due to the expansion of boundaries of digital Small and Medium Enterprises (SMEs), especially fintech and e-commerce firms. The EVC said those consequential ecosystem have contributed to the growth of the Nigerian digital economy riding on telecom infrastructure.
Danbatta aptly reckoned that digital services and contents provided by these SMEs will leverage on broadband infrastructure and the upcoming deployment of Fifth Generation (5G) network being driven by the Commission to deliver more innovative and high-quality experiences to consumers.
“The Commission’s successful auction and licensing of the 3.5GHz spectrum licences in the last quarter of 2021 for the deployment of 5G technology is set to creat many opportunities for the development of the industry and as a regulator, we are conversant with the fact that a dynamic regulatory environment is needed to sustain this industry growth”, Danbatta said.
“Therefore, it has become imperative for us, as critical stakeholders, to appraise the progress made so far as an industry and chart the course for the future of the telecoms industry in the country,” he stated. The EVC also informed that one of the sectors that had been positively impacted by the digital transformation is the financial services sector.
Amplifiying the EVC’s position, in his keynote address titled: “The Future of Telecom Regulation in Nigeria: Challenges of Access to Funding”, Dr. Ademola Sogunle, chief executive officer of Stanbic IBTC, asserted that the telecommunications industry had become the sustaining stimulus of the post-pandemic era as consumers’ behaviours continue to shift towards digital trends. Danbatta said that the contribution of the telecom sector continues to benefit the entire ecosystem.
While reviewing resolutions of the first edition of the Summit held in 2019, the Director, Policy, Competition and Economic Analysis, NCC, Yetunde Akinloye, said the Commission had implemented the recommendations of that meeting among which were Executive Order on Duplicity of Taxes and Levies, and Harmonization of Right of Way (ROW) fees.
She said other recommendations implemented include addressing of interconnect debt, review of the framework on interconnect clearing houses to ensure 10 per cent of traffic is routed through clearing houses, incentive for small operators as well as monitoring compliance with Code of Corporate Governance.
To sustain the momentum from the previous industry leadership engagement, this year’s Summit provided the Chief Executives of companies in the telecom sector an opportunity to meet the EVC and top Management of the Commission at a roundtable for deeper thinking and greater reflection on the challenges in the sector and proffer meaningful solutions.
Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) have ordered Deposit Money Banks and Mobile Network Operators to settle the long-standing N250bn USSD debt dispute before January 2, 2025.
The CBN and NCC also directed banks to pay the pre-Application Programming Interfaces (API) debt before July 2, 2025.
They also ordered that post-API debts be settled before December 31, 2024.
The directive was issued in a joint cirular titled, “2nd Joint Circular of the Central Bank of Nigeria and the Nigerian Communications Commission on the Resolution of the USSD Debt Issue Between Deposit Money Banks and Mobile Network Operators.”
The circular dated December 20, 2024, was signed by Oladimeji Taiwo, acting director of the Payments System Management Department, CBN, and Chizua Whyte, head of Legal and Regulatory Services, NCC.
The regulators said, “In view of the foregoing, the CBN and the NCC hereby direct DMBs and MNOs as follows: 1. That 60 per cent of all pre-API invoices must be paid as full and final settlement.
“Payment plans (lump sum or installments) must be agreed upon between a concerned DMB and MNO by January 2, 2025. Installments must be based on equal monthly payments, with full payment due by July 2, 2025.
“DMBs must pay 85 per cent of all outstanding invoices issued after the implementation of APIs (i.e., February 2022) by December 31, 2024.
“Similarly, 85 per cent of future invoices must be liquidated within one month of service.”
According to the regulators, the transition to end-user billing will be activated only for DMBs and MNOs that comply with the payment conditions cobtained in the circular.
CBN and the NCC said they would provide further guidance on public enlightenment initiatives related to the transition.
The regulators also directed MNOs to implement the “10-seconds rule” for USSD invoicing.
This implies that any session lasting less than ten seconds will not be billable.
The regulators added, “Failure to comply with the terms outlined in this directive will attract necessary sanctions, ensuring that both DMBs and MNOs uphold their obligations.”
Nigerian Communications Commission (NCC) has unveiled a draft regulatory framework aimed at addressing fraud, spam, and other challenges in the Application-to-Person messaging sector.
The telecom regulator made this announcement in a statement.
The proposed framework, which was introduced during a virtual Stakeholders’ Forum, is said to be a key step towards enhancing the sector’s integrity and ensuring a fair, transparent environment for all parties involved.
The draft framework, presented by Aminu Maida, executive vice chairman, NCC, who was represented by Chizua Whyte, NCC’s acting head of legal and regulatory services, seeks to regulate the A2P messaging space.
The A2P messaging, used for notifications such as bank alerts, promotional campaigns, and government updates, has become a vital communication tool in Nigeria.
However, the sector faces significant challenges, including consumer protection concerns, fraud, and data privacy issues, as well as an unequal distribution of value within the ecosystem.
“The international A2P messaging space in Nigeria faces gaps that have led to issues such as fraud, spam, and data privacy concerns. These challenges threaten the sustainable growth of this communication tool,” the NCC said.
The proposed framework aims to address these challenges by protecting consumers, promoting fair competition, and holding service providers accountable.
“This forum marks a pivotal step towards addressing these challenges. We are here to engage with all stakeholders—operators, aggregators, businesses, service providers, and consumers—to refine the framework and ensure it meets the needs of the entire ecosystem.”
The NCC stressed the importance of inclusivity and collaboration in creating an effective regulatory environment.
Airtel Africa, a provider of telecommunications and mobile money services, has announced the commencement of a second share buyback programme that will return up to $100m to shareholders.
The share buyback reflects the Board’s confidence in the Company’s continued growth potential, the strength of its balance sheet, and the consistent cash accretion at the holding company level.
Furthermore, the buyback remains in line with the Company’s existing capital allocation policy.
According to the company, the programme will be executed in accordance with applicable securities laws and regulations.
The share buy-back programme is expected to be phased over two tranches, with the first tranche commencing today and anticipated to end on or before 24 April 2025.
The first tranche will amount to a maximum of $50m.
The Company has entered into an agreement with Barclays Capital Securities Limited (Barclays) to conduct the first tranche of the buy-back and carry out on-market purchases of its ordinary shares with the Company subsequently purchasing its ordinary shares from Barclays.
Under this agreement, Barclays will act as riskless principal and will make decisions independently of the Company.
The sole purpose of the buy-back programme is to reduce the capital of the Company.
It noted that as such, all shares purchased under the buy-back programme will be cancelled.
In a statement signed by Simon O’Hara, group company secretary, the company noted that the share repurchase process will adhere to pre-set parameters agreed upon with Barclays Capital Securities Limited (Barclays), the executing partner for the first tranche of the buyback programme.
This partnership ensures that purchases are conducted transparently and in compliance with all regulatory requirements.
The buyback will be executed under the authority granted by shareholders during the Annual General Meeting held on July 3, 2024, which permits the repurchase of up to 374,141,187 ordinary shares.
Following the completion of a prior buyback programme, the remaining authority allows for the acquisition of up to 328,842,995 shares.
Additionally, Airtel Africa confirmed its commitment to adhering to the Financial Conduct Authority’s UK Listing Rules 9.6 and the provisions of the Market Abuse Regulation (EU) No. 596/2014, as incorporated into UK domestic law.
The company also clarified that share purchases may occur during closed periods, consistent with these regulations and the agreed parameters.
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