Danbatta: Nigeria’s telecoms sector growth and regulatory excellence
TODAY is Nigeria’s 63rd Independence Anniversary from the Colonialist. Possessing one of Africa’s largest economies, Nigeria’s population of over two hundred million people, and one of the most diverse with rich performance of self-sufficiency and marked determination to succeed and prosper, even in the face of all the challenges the country is currently facing despite it’s lack of preparedness, Nigeria is a wonder indeed!
Amidst the turbulence as witnessed in the economy, infrastructure build out, security, among others, Nigerians are not given up on the country. They strongly believe that with the right leadership, Nigeria can weather the current storm.
Of course, the challenges appear gargantuan, but surmountable if there is leadership.
It is profound to say that across several economic fundamentals that continued to shape country’s progress, the telecommunications sector has remained at the forefront…Thanks to the good leadership!
The telecommunications sector remains an enabler of socioeconomic transformation through sectoral milestones and multiplier effect of its operations on other sectors of the nation’s economy.
The Nigerian Communications Commission (NCC), the national regulatory authority for the telecommunications sector, under the leadership of its Executive Vice Chairman/Chief Executive Officer, Prof. Umar Garba Danbatta, has put in place a number of ingenious regulations, guidelines and initiatives to propel the sector for improved performance on the economy.
The level of resilience and sustainability currently obtainable in the telecoms sector, which boasts of $77 billion in investments in the last two decades, up from $500 million in 2001, has been an outcome of sustainable policies emplaced by the telecoms regulator to provide the necessary digital valves required to support the economy.
NCC, as the Federal Government’s agency, saddled with the responsibility of promoting the deployment of baseline broadband infrastructure across the country through effective regulation of the digital ecosystem, especially by creating an enabling environment for its licensees across different market segments to be able to roll out services in all nooks and crannies of Nigeria, the commission has been upbeat in living up to its expectations as an enabler.
Indeed, it will be difficult to separate the NCC policies from its current driver and visionary, in the person of the EVC/CEO of NCC, Danbatta. Prof. Danbatta has been in charge of the most critical development infrastructure in a modern economy for the past eight years, having assumed office as the country’s Chief Telecom Regulator in August 2015.
Exemplary leadership of Danbatta
AS a visionary leader and a telecommunication engineering professional per excellence, Danbatta, ab initio, took decisive steps early on his appointment in August 2015 to carve for NCC a path of regulatory excellence with firm and forthright leadership needed for the revolutionary changes that have happened in the telecoms industry.
Upon assumption of office in 2015, Danbatta started by articulating a Strategic Vision Plan (SVP) for the years 2015-2020 after due consultation with industry stakeholders. Otherwise called the 8-Point Agenda, the SVP is the forerunner to the SVP II 2021-2025, dubbed, the 5-Point Agenda. The SVPs are Commission’s conscious effort to streamline policies, plans and extant strategies in the communications and digital economy sector for close implementation and monitoring for remarkable and quantifiable outcomes. The policies and strategies include the Economic Recovery and Growth Plan (ERGP) 2017-2020, the National Digital Economy Policy and Strategy (NDEPS) 2020-2030, the Nigerian National Broadband Plan (NNBP) 2020-2025, and the Commission’s Strategic Management Plan (SMP) 2020-2024.
Fronting Strategic Vision Plans (SVP) 2015-2020
THE first SVP focused on an 8-Point Agenda, whose diligent implementation has significantly improved the growth of the sector and the sector’s contribution to the national Gross Domestic Product (GDP). That vision has helped to facilitate broadband penetration, improve quality of service (QoS), optimise usage and benefits of the spectrum, promote Information and Communication Technology (ICT) innovation and investment opportunities, facilitate strategic collaboration and partnership, empower and protect consumers, promote fair competition and inclusive growth, as well as ensure regulatory excellence and operational efficiency. Following the diligent implementation of the 8-Point Agenda, the country achieved and surpassed its broadband penetration target of 30 per cent by the end of December 2018.
The Strategic Vision Plans (SVP) 2021-2025
IN 2021, Danbatta mobilised his dynamic team at NCC to develop a new and sequential Strategic Vision (Implementation) Plan (SVP) 2021-2025, an initiative regarded as the Commission’s transformation agenda, which succeeds the 8-Point Agenda, earlier instituted in 2015 and implemented successfully.
Speaking on the SVPs, Nigeria’s chief telecoms regulator stated that they are designed to accelerate the consolidation of all the lofty gains of telecom liberalisation and to advance the actualisation of digital economy policies, programmes and targets of the government as stipulated by the President’s message to him in 2015, to hit the ground running. Danbatta said it was a marching order. On the SVP II, the EVC said: “The need to take the Commission’s vision to greater heights facilitated the development of a new Strategic Vision Plan which was unveiled on September 7, 2021. In developing the new SVP (2021 – 2025), we have taken cognizance of several notable advancements in the Nigerian telecommunications industry within the last five (5) years, as well as the current global realities.”
According to Danbatta, these realities, all of which have been incorporated into the SVP 2021-2025, include the International Telecommunication Union (ITU) Strategic Plan (2020–2023), the NCC’s Strategic Management Plan (SMP) 2020-2024, the National Digital Economy Policy and Strategy (NDEPS) 2020-2030, the National Broadband Plan (NBP) 2020-2025 and the Federal Government’s Economic Recovery and Growth Plan (ERGP).
Consequently, the SVP 2021-2025 has five focal points as follows: Organisational Renewal for Operational Efficiency and Regulatory Excellence; Facilitate the Provision of Infrastructure for a Digital Economy which fosters National Development; Promote Fair Competition, Inclusive Growth, Increased investment and Innovative Services; Improve Quality of Service (QoS) for Enhanced Consumer Quality of Experience (QoE), and Facilitate Strategic
Collaboration and Partnership.
Pushing FG’s Economic Agenda
While the implementation of the 8-Point Agenda ran concurrently to facilitate the accomplishment of the Federal Government’s vision in the Economic Recovery and Growth Plan (ERGP), which expired in December 2020, Danbatta-led NCC conceptualised the new SVP, 2021-2025 to add the necessary impetus concurrently to the implementation of the Federal Government’s National Development Plan (NDP), 2021-2025, which is the successor blueprint to ERGP.
In other words, just as it did with respect to the first SVP, industry stakeholders believe that once NCC is able to diligently implement the five pillars in the second SVP, it would have done another resounding justice to the leading role it is expected to play in implementing all the extant digital economy policies of government as well as an economic development plan to bolster Federal Government’s vision for diversifying the economy.
Sector’s Contributions to GDP Soars
AS Nigeria celebrates the 63rd Independence Anniversary, it is pertinent to note that the telecommunications sector has recorded impressive growth data with an unprecedented contribution to the nation’s Gross Domestic Product (GDP), according to data obtained from the National Bureau of Statistics (NBS) and the Commission’s official website (www.ncc.gov.ng).
Danbatta’s institutionalization of leadership finesse, regulatory excellence and operational efficiency has helped the industry to consolidate on its previous gains, as it continues to wax stronger as a very important sector, driving national development. For instance, by August 2023, active telecoms subscribers in the country have grown significantly from about 400,000 aggregate telephone lines in the country in 2001 to 220 million. This represents a teledensity of 115.47% from less than 1% in 2001.
Besides, basic Internet subscriptions have also grown from zero in the pre-liberalisation era in 2001 to over 159 million as of August 2022. It is also gratifying that the broadband penetration which was less than 10 per cent, when Danbatta came on board in 2015, rose to over 40 per cent in December 2018 and in August 2022, broadband penetration reached the 45.57% penetration mark.
Data released by the NBS recently revealed that the Information and Communication Technology (ICT) sector contributed 20% to the nation’s Gross Domestic Product (GDP) as at the first quarter of 2023. From this figure, the telecommunications sector alone contributed 16%. The ICT contribution to GDP is, by far, the second largest contributor to the national economy coming after the agriculture sector. From less than $500 million investment in 2001, the investment profile in the nation’s telecommunications sector has surpassed $77 billion.
5G Services Begin in Nigeria as FG Earns $826m
AS the Chief Telecoms Regulator, Danbatta rallied stakeholders in the ecosystem to facilitate the deployment of 5G network in Nigeria. Realising that the implementation of 5G will accelerate the actualisation of the national targets in the Nigerian National Broadband Plan (NNBP), the National Digital Economy Policy and Strategy (NDEPS), as well as other sectoral policies designed to enhance Nigeria’s digital transformation, Danbatta-led NCC has pulled necessary strings required to make Nigeria one of the early adopters and users of 5G services in Africa.
The diligence and sustained efforts of the Commission in this regard led to the successful auction of the 3.5 GHz spectrum band for the deployment of 5G network in Nigeria in December 2021, with MTN Nigeria and Mafab Communications emerging as winners of the two spectra lots sold during the auction exercise in December 2021, which is widely adjudged by industry stakeholders as transparent, fair and credible. By December 2022, Airtel also got its 5G license to pave way for a more robust ecosystem.
On September 18, 2022, MTN Nigeria officially announced the commercial launch of 5G services in Lagos with plans to extend to six other states soon. With this, the Danbatta-led NCC has put Nigeria on another global record of giving telecom consumers a whole new experience in telecommunications services that speaks to more efficiency and gravitates Nigeria to unleashing the potentials of emerging technologies such as the Internet of Things (IoT), Big data, Augmented Reality (AR), Artificial Intelligence (Machine Learning), Blockchain, Robotics, and so on.
According to industry stakeholders, the advanced 5G technology promises to extend the reach and capacity of a data networks in Nigeria and enable much faster speeds and lower latency, giving customers near-instant access to the things they care about and downloads that take seconds, instead of minutes.
Today, with all the licensees (MTN, Mafab and Airtel) licensed by NCC for 5G auction, the commission was able to about $826 million to the Federal Government coffers.
Facilitating Network Growth, infrastructure rollout
INDEED, with sound policies from the regulator, the networks continued to grow in leaps and bounds. Currently, there are about 500, 000 5G subscription in Nigeria.
The NCC puts 2G-population coverage at 93.90 per cent; 3G penetration at 86.82 per cent; 4G hovers around 79 per cent since the revolution began in 2001.
The networks have been powered by various investments in the country’s 34,862 towers, 127,294 base stations and 96,198km fibre optic. The country has microwave coverage of 289,270.48km and 125 gateways servicing the economy.
To ensure accelerated broadband development, the NCC increased the number of licensed Infrastructure Companies (InfraCo) from two in 2015 to six. The InfraCos are to deploy broadband infrastructure, on a wholesale basis, in the 774 Local Government Areas in Nigeria. However, funding portion and the entire InfraCo Framework is currently being review to keep it in line with the current economic reality.
To ensure telecoms infrastructure are not tampered with, in 2016, Danbatta’s intervention led to the reduction of the Ground Fee Rate imposed on IHS by Ogun State government from N370 million down to N120 million, leading to the unsealing of 47 Base Transceiver Station (BTS). In 2017, NCC’s intervention led to the waiver of N221 million RoW fee for MTN in Kano. Also, in 2018, Danbatta’s intervention in Kogi helped in the unsealing of 20 BTS hub sites.
Through his intervention and engagement with the Nigerian Governors Forum (NGF), there has been, in some states, reduction in Right of Way charges to fast-track telecoms infrastructure deployment.
Positioning Subscribers as King
Of course without the subscribers, there won’t be operators and regulations would be a waste. However, in recognition of the consumers as king, NCC under Danbatta-led administration, declared 2017 as the Year of the Consumer with consumer-centric initiatives aimed at protecting the rights, interests and privileges of the consumers
It introduced the Do-Not-Disturb (DND) 2442 Short Code for consumers to stop cases of unsolicited marketing messages on their respective networks. The DND can boast of over 30 million activations till date from 500,000 in 2015. The Commission also created a second layer complaint toll free line, 622 for consumers to escalate complaints to the level of the Commission
Besides, the commission also came out with issuance of Directions on Data rollover, forceful subscription of Data Services and value-added services (VAS), Do-Not-Disturb (DND) 2442 Short Code, among others.
He also ensured increased consumer education through major outreach programmes across the go-poetical zones, on different issues can consumers concerns such as cybercrimes to safeguard them online.
There was also the strengthening consumer protection through revising Consumer Complaints and Service Legal Agreement (CC/SLAs) with the operators in order to ensure prompt response to consumer complaints.
NCC also ensured the revised Consumer Code of Practice Regulations at a Public Inquiry. This is even as the draft regulations area is being concluded for publication in official Gazette.
Enabling Innovation, Research & Development
IN recognition of the enormous tasks ahead and to adequately prepare for the future, the Danbatta-led NCC has continued to facilitate research and development in Nigeria’s tertiary institutions to promote innovations that can ride on the robust infrastructure being facilitated through the Mobile Network Operators (MNOs), Infrastructure Companies as well as Satellite Operators being licensed to operate in Nigeria.
As of second quarter of 2023, NCC has committed over N600 million to Nigerian universities and other tertiary institutions across the country to facilitate research and innovations. The funds have been committed to research grants to universities and tertiary institutions, including professorial chairs in the universities in strategic areas to drive development in the Nigerian telecommunications industry. Hence, the Commission is now focused on supporting the academia in the commercialisation of the prototypes from this innovative research programme because of the relevance and correlation to the Federal Government’s policy on harnessing indigenous technology for sustainable development of our country. According to Danbatta, inventions, and improvements that emanate from academia are required by the industry for improved efficiency and productivity.
NCC’s ranking as Ethically-Compliant Regulator
ANOTHER important milestone achieved under Danbatta’s leadership that resonates with the spirit of Nigeria’s Independence Anniversary and democratic ideals was the ranking of the Commission as the most integrity-driven and ethically-compliant parastatal among 25 other regulatory agencies assessed by the Independent Corrupt Practices and Other Related Offences Commission’s (ICPC) two years ago.
Fortnight ago, the Chief Justice of Nigeria (CJN), Olukayode Ariwoola, described the NCC, as a worthy telecoms regulator in Nigeria for its dedicated efforts in promoting awareness and knowledge of Information Communications Technologies (ICT), among the judiciary in particular, and the Nigerian public in general.
The CJN, who is the Chairman, Board of Governors of the NJI, spoke in an opening remark at the 2023 edition of the yearly workshop for judges on telecommunications issues hosted by the NCC.
Ariwoola said that information technology and telecommunication services have surpassed the conventional method of court service delivery, as the use of the Internet is becoming a prominent feature of this era with innovative and interactive influences on the public, hence, the crucial nature of the workshop.
Before now, in the anti-graft agency’s Ethics Compliance and Integrity Scorecards (ECIS), 2020, which measures how Ministries, Department and Agencies (MDAs) of the Federal Government comply with ethical, integrity, statutory, regulatory and policy standards and requirements, the NCC came first with a score of 81.15 per cent. Trailing behind NCC in the prestigious ranking of the 25 regulatory agencies are eight other agencies, with scores above 50 per cent.
Stakeholders have hauled the Danbatta-led NCC for this feat, saying the ranking is a testament to the ethical culture and high standards of integrity, that characterise the operations and regulatory activities of the Commission. Accordingly, the regulatory initiatives of the Commission, too numerous to itemize here, have consistently underscored its commitment to continue to support the Federal Government’s digital economy agenda to rapidly advance the socio-economic development of Nigeria through a fair, firm, forthright and transparent regulation.
Final Note
Finally, as Nigeria marks its 63rd Independence Anniversary, the NCC, under its current leadership, has proved its mettle as a flagship public sector institution, enthusiastically committed to the discharge of its mandates, functions, and responsibilities in facilitating the deployment of broadband infrastructure, driving adoption of emerging technologies, putting the telecoms consumers at the nerve-centre of regulation, supporting the government to diversify the Nigerian economy, and collaborate with all stakeholders to ensure that Nigeria leverage emerging technologies for the prosperity of citizens, businesses and national development.
