FAILURE OF TELECOM COMPANIES TO BUY 5G RESPONSIBLE FOR POOR REVENUE GENERATION- NCC 30-01-25
By Sadiq Aminu The Nigeria Communications Commission, NCC, has attributed low revenue generation in the sector in 2024 to the failure of telecommunications companies to buy 5G Spectrum licences.
The NCC’s Director, Financial Services, Yakubu Gontor, and its Chief Executive Officer, Executive Vice Chairman, Aminu Maida, stated this during the 2025 budget defence before the National Assembly joint Committee on Communication.
Mr. Gontor said the Commission was not able to auction the 5G Spectrum primarily due to market conditions.
“Two large operators already have 5G spectrum and they are actually underutilizing it. Now the third largest operator who were banking on to purchase this spectrum unfortunately indicated to us that perhaps this is not the right time to do it and they made it clear that their strategy was to expand their fortune.”
The NCC’s Director, Financial Services revealed that despite the 50% telecom tariff hike, the NCC may not generate more revenues from spectrum sales this year.
He however noted that, with the introduction of new technologies including 6G, the federal government could generate a record of over $1 billion in revenue.
Shedding more light on the 2024 budget performance, the Chief Executive Officer, Executive Vice Chairman, NCC, Mr. Aminu Maida said the Commission generated N195.8 billion as revenue in 2024, out of which N111 billion was remitted to the Consolidated Revenue Fund.
Mr. Maida however informed the Committee that, the Commission had targeted to earn N292.3 billion in the fiscal year but missed the target largely due to its inability to auction one slot of the 5G Spectrum.
The Co- Chairman of the Committee, Senator Aliyu Ikrah Bilbis, said, the submissions of the NCC would allow members of the Committee to ask questions as well as help the Commission improve in its operations in 2025.