The Nigerian Communications Commission (NCC) has reaffirmed its dedication to promoting the growth of 5G technology and enhancing revenue in the telecommunications sector.
During a recent budget defence meeting with the National Assembly Joint Committee on Telecommunications in Abuja, Dr Aminu Maida, the Executive Vice Chairman and CEO of the NCC, provided an update on the status of the 5G spectrum in Nigeria. Although the two largest telecom operators have acquired the necessary 5G spectrum, they have not yet used it fully. Meanwhile, a third operator has chosen to concentrate on strengthening its 4G network, resulting in a delay in the sale of the remaining 5G spectrum.
Despite these hurdles, Maida expressed optimism about the upcoming spectrum sales, emphasising that developing Nigeria’s telecommunications infrastructure will improve digital connectivity and stimulate broader economic growth.
The NCC has recognised the challenges faced in the 5G spectrum auction yet reported robust financial performance for 2024, generating US$131 million in total revenue, with US$74 million allocated to the Consolidated Revenue Fund (CRF). However, Maida acknowledged a shortfall in the Commission’s revenue target of US$195 million, primarily due to unsold 5G spectrum slots. He indicated that this inability to sell the spectrum substantially affected revenue from spectrum fees, which are essential for funding the NCC.
Mr Yakubu Gontor, the NCC’s Director of Financial Services, noted that market conditions played a significant role in the unsuccessful auction. Despite the two major operators holding 5G spectrum, they have not fully utilised it, and the third operator has shown hesitation in investing in the new technology. Furthermore, 9 Mobile, which was anticipated to acquire the spectrum, is currently restructuring, leaving only one potential buyer for the remaining slot.
Looking forward, the NCC does not foresee a significant increase in revenue from spectrum sales in 2025, especially following a recent 50% hike in telecom tariffs. However, Gontor mentioned that the future introduction of 6G technology could generate over US$1 billion in revenue for the government, as spectrum sales typically follow a 10-year cycle.
Senator Aliyu Ikrah Bilbis, Co-Chairman of the Committee, expressed approval of the NCC’s budget performance for 2024 and its projections for 2025. He highlighted the vital contribution of the telecommunications sector to Nigeria’s economy, accounting for roughly 16% of the nation’s Gross Domestic Product (GDP). Bilbis underscored the necessity of providing the NCC with adequate financial and operational resources to strengthen its regulatory capabilities and enhance service delivery.
