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Buhari Allegedly Waives N70b Spectrum Fee for Telcos

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Facts have emerged on how President Muhammadu Buhari, through the Ministry of Communications and Digital Economy and the Nigerian Communications Commission (NCC), allegedly waived over N70 billion in spectrum fees for Emerging Market Telecommunications Service (EMTS), trading as 9mobile in Nigeria.

Buhari Allegedly Waives N70b Spectrum Fee for Telcos

According to The Guardian, since the rebranding of Etisalat to 9mobile in July 2017, the firm has been linked to a particular billionaire in the north with close ties to the Presidency. This is believed to have granted the telecommunications firm some preferential treatment in the industry, as against other telcos.

The Guardian sighted a letter from the NCC, which conveyed approval of the waiver to the telecommunications firm.

Approval of such a waiver, according to industry sources, is a clear case of favouritism and unfairness to other competitors. They claimed the action has potential to distort the level playing field and undermine growth of the telecoms industry in Nigeria.

According to sources, the waiver formed part of last minute underhand dealings, which the ministry, through its closeness to the Presidency, was able to facilitate.

The letter by NCC, signed by its Executive Vice Chairman, Prof. Umar Danbatta, dated May 8, 2023, was addressed to the Chief Executive Officer of the telecommunications, EMTS, titled: ‘RE: Appeal for Concession on Payment of Spectrum Licence Fees’.

The commission, in the letter, referred to the above subject matter and also the presidential approval conveyed through a letter with reference number: HMCDE/026/GEN/Vol. VII, dated April 6, 2023, from the office of the Minister of Communications and Digital Economy on the request by Emerging Markets Telecommunications Services Limited (EMTS).

In the letter, NCC said it conveyed the approval of Mr. President on the prayers of the Minister of Communications and Digital Economy for necessary action.

According to the letter, the prayers were: a 50 per cent waiver on the total amount on the outstanding spectrum fees due to the Federal Government of Nigeria; installment payment of the balance of 50 per cent (unwaived) of the outstanding Spectrum fees spread over a period of 10 years; and that EMTS should make immediate payment of the first installment of the amount (50 per cent) to the Federal Government of Nigeria.

In view of these prayers, EMTS was informed that the amount waived on 900/1800MHz band is N43, 608,048,767.50 and for the 2100MHz band, N29, 329, 977, 600.00.

In addition, the document revealed that installment payment of the balance, yearly, for 900/1800MHz band is N4,360,804,876.75 and for the 2100MHz band, N2, 932,997,760.00, over a period of 10 years.

EMTS was told that the amount immediately due for first installment of 900/1800MHz band is N4, 360,804,876.75 and for the 2100MHz band, N2, 932,997,760.00.

According to the letter, EMTS is to ensure immediate payment of the amount stated for payment as approved by Mr. President vide a letter, dated March 31, 2023.

The telecommunications firm is also to note that this concession does not only apply to new accruals on spectrum, and EMTS is to ensure strict compliance, as appropriate sanctions shall be applied in cases of non-compliance.

However, efforts to get more clarifications on this development from NCC proved abortive as of press time.

The Guardian,reached out to the Commission’s Director of Public Affairs, Reuben Mouka, on Tuesday, who promised to clarify and get back on Wednesday, but as of press time, yesterday, there was no information from him.

Several calls were put across to his mobile numbers, but his network operators claimed the numbers were switched-off. Text messages were equally sent to the numbers without any response, as of the time of filling this copy.

The Guardian,also reached out to the Head, Corporate Commission, NCC, Mrs. Nnenna Okoha, who directed our reporter to NCC, Director of Public Affairs.

Truly, spectrum has been described as the life wire of the telecommunications industry. Only recently, during a 5G auction, which presented MTN Nigeria, Mafab Communications and Airtel as winners, between 2021 and 2022, the Federal Government, through the NCC, raked in some $820 million from fees paid for the licenses.

Source: The Guardian

 


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FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

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Nigeria will criminalize the destruction of broadband fiber cables following repeated complaints by MTN Nigeria Communications Plc and other telecommunications companies that they are losing billions of naira, according to people familiar with the matter.

FG Plans EO to Criminalise Fiber Cable Damage Costing Telcos Billions

Federal ministry of works, which supervises federal road constructors, is finalizing the regulation that will be signed as an executive order by President Bola Tinubu, said the people, asking not to be identified as they weren’t authorized to comment.

While there are presently laws against vandalism, the authorities are aiming to regulate construction firms more closely.

The order will enforce stiff penalties on offenders, said the people, declining to provide more details or say when it will be signed.

“Telecom assets are critical backbone that supports the economy across sectors,” said Temitope Ajayi, a senior presidential aide, who noted that the Association of Telecommunications Companies (ATCON) has been demanding the classification for years.

New rules will provide “further assurance that the Nigerian government will protect their investments against vandals and criminal elements.”

The Nigerian Communications Commission (NCC) estimates that the sector will make up more than a fifth of the country’s gross domestic product by the end of 2027, up from 13.5% in the third quarter of last year.

The move will help alleviate pressure on the telecoms sector, which is facing increased operating costs and sales pressures from a sharp depreciation in the currency and a threefold increase in energy prices.

Repairs and revenue losses from damaged cables is estimated to have cost the sector almost 27 billion naira ($23 million) last year alone, documents seen by Bloomberg show.

MTN Nigeria, the biggest wireless operator in Africa’s most-populous nation, and Airtel Africa Plc bore the brunt of the costs, the documents show.

MTN suffered more than 6,000 cuts on its fiber cable last year, the documents show. On Feb. 28, a cut on its network in three different locations by a road construction firm, an oil serving company and someone burning rubbish in a manhole meant customers faced more than five hours of data and voice outages.

The operator relocated 2,500 kilometers (1,553 miles) of vulnerable fiber cables between 2022 and 2023, at a cost of more than 11 billion naira – enough to build 870 kilometers of new fiber lines to areas without coverage.

A presidential order on the matter would be welcomed, said Tony Izuagbe Emoekpere, president, Association of Telecommunications Companies of Nigeria.

“When it comes to communication infrastructure, they are destroyed at will, so we are eagerly awaiting the president’s order,” he said. “It would be a great boost to the industry, and it will also encourage investment.”

 

 


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Telegram Eyes 1Bn Users amidst Political Pressures

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Telegram, the messaging giant founded by Pavel Durov and headquartered in Dubai, anticipates hitting a remarkable milestone of one billion active monthly users within the next year.

Durov’s departure from Russia in 2014, prompted by governmental pressures to stifle opposition communities on his VK social media platform, underscores Telegram’s commitment to neutrality despite geopolitical challenges.

With 900 million active users currently, Telegram stands as a beacon of free speech in the digital realm, particularly influential in former Soviet Union republics and pivotal during conflicts like the Russia-Ukraine standoff.

Durov’s staunch advocacy for freedom of expression and opposition to censorship by tech giants like Apple and Google reinforces Telegram’s status as a neutral platform.

Opting for the UAE as its base, Durov cites its neutrality and openness as conducive to Telegram’s ethos, serving both opposition groups and governments alike while maintaining impartiality.

In Durov’s vision, the pursuit of freedom eclipses material gain, shaping Telegram’s trajectory as a bastion of digital liberation.

 

 


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NITDA, NIMC Announce Collaboration To Strengthen Digital Economy

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To further strengthen Nigeria’s digital economy in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda, the National Information Technology Development Agency (NITDA) and National Identity Management Commission (NIMC) have announced a collaboration on National Public Key Infrastructure (PKI) and Digital Public Infrastructure (DPI) to enhance and create synergy between digital identity, payment ecosystem, and secure & seemless data exchange capabilities for Nigeria.

During the meeting between the Director-General of NITDA, Kashifu Inuwa Abdullahi, and Director General of NIMC, Engr. Bisoye Coker-Odusote, with some management staff of both organisations, they discussed various initiatives, which include building DPI stacks for a secured and seamless data exchange and forming partnerships to transform the national identity system.

This collaboration also aims to harness the potential of the innovative ecosystem and emphasise the use of Public Key Infrastructure (PKI) to drive digital transformation in Nigeria.

To ensure a smooth implementation, a 12-man committee was set up. This committee will play a crucial role in kickstarting and harmonising the initiatives. It is expected to deliver a comprehensive implementation report within the next 4 weeks


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