Policies to push telecom GDP contribution to 25% underway—Aminu Maida

The Executive Vice Chairman of the Nigerian Communications Commission (NCC) Dr. Aminu Maida, has said the Commission and the Ministry of Communications, Innovation, and Digital Economy are working on the right policies to push the contribution of the telecom sector to 25%.

Maida disclosed this Friday evening in Lagos during a reception held in his honour by the Association of Telecommunications Companies of Nigeria (ATCON). According to him, the sector has done well with its current 14.58% contribution but it could do better if current challenges confronting the sector are addressed.

“I know that there are challenges in the industry. I also want to assure you that we are taking them seriously.

“Myself and the Minister of Communications, Innovation, and Digital Economy, are working very closely looking at the right policies to ensure sustainability for an industry that has done so well for the country with 14% GDP contribution. We believe we can do 25%% and above and work is going on in that regard with the Ministry,” Maida told the telecom operators.

Boosting connectivity

The NCC boss also noted that the Commission and the stakeholders have works to do to boost connectivity in the country. According to him, although Nigeria has close to 200 million connected lines, more than half of them are still on 2G.

Data from the Commission’s website shows that out of the 219 million active subscriptions recorded in March this year, 56.97% of them were on 2G, while only 32.74% were on 4G.

“There is a lot of work to be done, especially in addressing challenges faced by Mobile Network Operators (MNOs) and Original Equipment Manufacturers (OEMs) for long-term sustainability.

“I think even the president realizes the importance of the digital infrastructure to the future of Nigeria for this great nation,” he said.

Apparently referring to the recent requests by the telecom operators for the Commission to approve tariff increase, which the regulator has declined, Maida said:

“Please have my assurances that we have your best interest at heart, but also as a regulator, we have two sides, the industry, and the consumer, so it’s about getting the balance right so that everybody gets a fair deal.”

While welcoming the NCC EVC, the President of ATCON, Mr Tony Izuagbe Emoekpere, thanked Maida for demonstrating an open-door leadership policy that has enabled the players to get closer to the Commission.

He expressed confidence in the EVC’s leadership style to tackle multifaceted challenges plaguing the industry. Other members of ATCON who spoke at the event also highlighted several challenges confronting the industry, urging the Commission to address them in order to propel telecom growth.

What you should know

Telecom operators under the aegis of Association of Licensed Telecom Operators of Nigeria (ALTON) and ATCON recently appealed to the NCC to allow them to implement tariff increase.

• According to them, the telecom industry is the only industry that has not reviewed its prices despite the rising inflation in the country and other economic realities that warrant increment.
• They blamed this on the regulatory restraints that have been preventing them from pricing appropriately.
• The NCC regulates prices in the telecom industry and telecom operators are not allowed to implement any price change without the regulator’s approval.
• The regulator has said a cost-based study is being conducted to determine if it would approve price increments for the operators.