T he Nigerian Communications Commission (NCC) has reiterated its dedication to accelerating the rollout of 5G technology and enhancing revenue generation within the telecommunications sector. This assurance was provided during a budget defense session before the National Assembly Joint Committee on Telecommunications in Abuja, where Dr. Aminu Maida, the Executive Vice Chairman and CEO of the NCC, discussed the current state of 5G spectrum deployment in Nigeria.
Dr. Maida highlighted that while Nigeria's two largest telecom operators have acquired 5G spectrum licenses, they have not yet fully utilized the technology. Meanwhile, the third major operator has chosen to focus on expanding its 4G network, delaying the sale of the remaining 5G spectrum. Despite these challenges, Maida remains optimistic, emphasizing that continued development of Nigeria's telecommunications infrastructure will strengthen digital connectivity and support broader economic growth.
Financial Performance and Spectrum Sales Challenges
Although the 5G spectrum auction has faced hurdles, the NCC reported robust financial results for 2024, with total revenue of N195.8 billion and N111 billion remitted to the Consolidated Revenue Fund (CRF). However, the Commission fell short of its N292.3 billion target, largely due to the unsold 5G spectrum slot. Maida acknowledged that the inability to sell this spectrum significantly impacted revenue from spectrum fees, which constitute a major portion of the NCC's income.
Mr. Yakubu Gontor, the NCC’s Director of Financial Services, attributed the auction's underperformance to prevailing market conditions. Despite two major operators holding 5G spectrum, their underutilization of the technology and the third operator's reluctance to invest in 5G have hampered progress. Additionally, 9 Mobile, a potential buyer for the remaining spectrum slot, is undergoing restructuring, leaving limited prospects for immediate spectrum sales.
Outlook for 2025 and Beyond
Looking ahead, the NCC does not anticipate a significant surge in revenue from spectrum sales in 2025, especially following a 50% hike in telecom tariffs. However, Gontor projected that the eventual introduction of 6G technology could generate over $1 billion in revenue for the government, as spectrum sales typically follow a 10-year cycle. For 2025, the NCC has set a revenue target of N272.433 billion, with N205.7 billion expected from operating levies and N49.784 billion from spectrum fees.
Legislative Support and Sector Impact
Senator Aliyu Ikrah Bilbis, Co-Chairman of the National Assembly Joint Committee on Telecommunications, commended the NCC's budget performance for 2024 and expressed confidence in its projections for 2025. He underscored the vital role of the telecommunications sector, which contributes approximately 16% to Nigeria’s Gross Domestic Product (GDP). Bilbis emphasized the need to equip the NCC with adequate financial and operational resources to strengthen its regulatory capabilities and enhance service delivery across the country.
As Nigeria navigates the complexities of 5G deployment and prepares for future technological advancements, the NCC’s efforts remain crucial in shaping the nation's digital landscape and driving economic growth.
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