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NCC, FRC to Enforce Corporate Governance Compliance in Telecom Sector

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Nigerian Communications Commission (NCC) and the Financial Reporting Council of Nigeria (FRC) have agreed to enforce compliance by players in the Nigerian telecommunication sector to the national and sectoral corporate codes of governance in the country.

 

Speaking during a courtesy visit by the management and board of FRC to the commission in Abuja, Mr. Sunday Dare, executive commissioner, Stakeholder Management, NCC, who received the FRC team on behalf Prof. Umar Garba Danbatta, executive vice chairman of the commission, said the commission was ready to provide full support and collaboration by working together to entrench the best corporate governance practices in all sectors of the Nigerian economy.

 

Mr. Dare said the NCC believed that sound corporate governance was a sine qua non for meaningful growth and economic development, particularly for an industry as dynamic and complicated as telecom, stressing that this was why the NCC issued the Code of Corporate Governance for the telecom industry in 2014 and made it mandatory for its larger licenses in 2016.

 

He noted that the FRC also launched the Nigerian Code of Corporate Governance in 2018 to achieve broadly the same objectives as the NCC Code on an economy-wide basis. The FRC Code, however, takes effect from January 2020.

 

Dare explained that while the two codes had the same primary objective of enhancing corporate performance through adherence to best practice principles, it was natural that there would be areas of divergence, which he said the commission and FRC could work harmoniously together to address for the overall benefit of the country.

 

“It is our understanding that the National Code will exist simultaneously with sectoral codes such as the NCC Code, which will now be described as ‘Guidelines’; where conflicts exist between the two codes, the stricter provisions will apply; and the National Code for FRC gives flexibility for sector regulators such as the NCC to adapt Governance Principles to suit the peculiar needs of the sector,” he said.

 

Dare further explained that regulatory certainty and predictability were very critical for the telecom industry and therefore required continuous and harmonious engagements between the two organisations to address grey areas.

 

He also informed the FRC delegation that since the compliance with the NCC Code became mandatory; the level of corporate governance compliance among affected telecom licensees had also increased.

 

In his comments, Mr. Daniel Asapokhai, FRC executive secretary and chief executive officer, who led his delegation to the commission, commended the NCC for its sectoral code initiative, stressing that increased engagement of the businesses and licensees affected by such co


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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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