Kehinde Akintola
The House of Representatives on Thursday set up an Ad-hoc Committee that will investigate the failure of the Nigerian Communications Commission (NCC) to promote widespread availability and usage of mobile telecommunication network services throughout Nigeria (including the underserved and unserved areas).
The resolution was passed sequel to the adoption of a motion sponsored by Hon. Sergius Ogun who expressed grave concern over the Commission’s inefficiencies, despite the availability of Universal Service Provision Fund (USPF).
Other lawmakers who expressed displeasure over the development, including Hon. Mark Gbillah also underscored the need to investigate the amount accrued into the USPF coffer so far.
It would be recalled that from the total sum of N553.720 billion budget proposal sent by Mr. President to the National Assembly for NCC for the 2023 fiscal year, the sum of N559 billion was finally approved by the Parlament showing an increase of over N5 billion.
Breakdown of the N559.080 billion showed that the sum of N86.753 billion was for Recurrent Expenditure, N5.225 billion was for Capital Expenditure, N35,090 was for Special Project, while the sum of N16 billion was for transfer to the Universal Service Provision Fund (USPF), N416.014 billion will be transferred to the Federal Government of Nigeria, and the sum of N16 billion is for the Budget of the Universal Service Provision Fund (USPF) for the period ending 31st December, 2023.
According to the report, proposed total revenue of N510,648,492, the sum of N8,064,840 was from Licensing Fees; N100,000,000 was from Annual Operating Levy; N387,457,752 was from Spectrum Fees N7,600,000 was from Numbering Plan; N6,175,900 was from Admin Charges; N950,000 was from Type Approval Fees; N200,000 was from Sanction Fees; N200,000 was from Sundry Income.
The Parliament also approved the sum of N48,432,219 as Cost of Collection (Spectrum); the total funds available stands at N559,080,711; total sum of N86,752,963 was approved for Recurrent expenditures, including: Establishment Costs – N1,435,000; Staff Costs – N33,953,124; Personnel Management Cost – N13,370,642; Travel Costs -N5,465,231; Operational Costs – N12,203,661; Administration Costs – N5,223,689; and Spectrum Expenses – N15,101,616.
From the total sum of N5,224,501 approved for Capital Expenditure in 2023, the sum of N4,146,289 as Internal projects; Consultancies – N1,078,212; while total sum of N35,089,649 approved for Special Projects for the Commission, Emergency Communications Centres (ECC) is to gulp the sum of N6,055,149; Digital Parks & Establishment of National Artificial Intelligence Centre – N1,915,000; School Support Programme – N9,873,103; Nigerian Data Protection Bureau – N529,912; Subscribers Database Management – N10,949,657; Digital Job Creation (Social Intervention Programme) – N1,181,079; R&D in Emerging Trends in Telecoms – N793,609; Broadband Infrastructure Dev. Project – N2,537,541; and GSM Networks QoS Compliance Monitoring – N1,254,600.
The total Universal Service Provision Fund (USPF) budgeted expenditure for the Year 2023 was N16 billion only.
In his lead debate, Hon. Ogun noted that Section 3 of the Nigerian Communications Act, Cap N97, Laws of the Federation of Nigeria, 2004, establishes a body known as the Nigerian Communications Commission (NCC) with the responsibility of regulating the communications sector in Nigeria.
Hon. Ogun who expressed concern over the misappropriation of public fund, specifically noted that the Commisdiin’s initial plan on Emergency Response System (ERS), which led to the construction of Emergency Communications Centers all over the country, but yielded little or no results, despite the fact that the contract was awarded in millions of US dollars with annual fiscal appropriations for the said project.
“The House also notes that in Section 4 of the Nigerian Communications Act, Cap N97, Laws of the Federation of Nigeria, 2004, the Nigerian Communications Commission (NCC) is saddled with the responsibility of facilitating investments in and entry into the Nigerian market for provision and supply of communication services, equipment and facilities.
“The House is cognizant of the fact that section 112(1) of the Act, gives the NCC the power to consider, design and determine a system which shall promote the widespread availability and usage of network services throughout Nigeria by encouraging the installation of network facilities and the provision of network services to institutions in the unserved and underserved areas of the country, known as the Universal Service Provision (USP).
“The House is also cognizant that a community reading of the provisions of sections 114 and 118 of the Nigerian Communications Act shows that the structure, governance, administration and control of the Universal Service Provision Fund (USPF) shall be as determined (or domiciled in) the NCC.
“The House is aware that in the wake of the rapid expansions of the Global System of Mobile Communication (GSM) in Nigeria, most of the mobile telecommunication network operators were reluctant to move to the rural areas owing to the business considerations.
“The House is also aware that the Nigerian Communications Act, Cap N97, Laws of the Federation of Nigeria, 2004, empowers the Nigerian Communications Commission (NCC) to receive two and half percent (2.5%) of the annual turnover of the mobile telecommunication network operators as annual license renewal fee.
“The House is further aware that the Nigerian Communications Commission (NCC) is expected to utilize the funds generated from the contributions of mobile telecommunication network operators, for implementing Universal Access Strategy and programme in accordance with Federal Government’s policy thereon (as enshrined in section 4 of the Act).
“The House is informed that the Nigerian Communications Commission (NCC) on its own, decided to contribute 40% of the fund generated from the 2.5% annual turnover from mobile telecommunication network operators translating to 1% of the annual turnover of the operators to the Universal Service Provision Fund (USPF), a practice common throughout Africa.
“The House is also informed that the Universal Service Provision Fund (USPF), is to be used to build infrastructure in the underserved and unserved areas of Nigeria, which can subsequently be made available to the mobile telecommunication network operators, who will in turn utilize such infrastructure in serving the areas that are hitherto underserved and unserved.
“The House is further informed that the first major infrastructure project attempted by the NCC in this regard was the Emergency Response System (ERS), which led to the construction of Emergency Communications Centers all over the country, with little or no results, despite the fact that the contract was awarded in millions of US dollars with annual fiscal appropriations for the said project.
“The House is disturbed that the inability of the Nigerian Communications Commission (NCC) to utilize the Universal Service Provision Fund (USPF) to promote the widespread availability and usage of network services and applications throughout Nigeria as enshrined in Section 112 of the Nigerian Communications Act, Cap N97, Laws of the Federation of Nigeria, 2004, is a great disservice to the nation,” he said.
The Ad-hoc Committee chaired by Hon. Bamidele Salam is expected to report back within four weeks for further legislative action.
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