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NCC May Intervene over Telcos’ Debt to VAS Licensees

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Licensees in the Value Added Service (VAS) market segment of the nation’s ICT industry have sent ‘Save our Soul’ letter to the Nigerian Communications Commission (NCC) over the increasing debts owed them by telecom operators.

Nigeria CommunicationsWeek gathered that the debt profile running in billions of naira has forced about 30% of the licensees to close shop.

Thus, they are crying to the Nigerian Communications Commission (NCC’s) to replicate its interventional efforts that led to the payment of N10 billion owned to their counterparts in the interconnect segment by same telecom operators.

Meanwhile, there are indications that NCC may step in to resolve the matter as the Professor Umar Danbatta, the EVC in his speech at the recent TERF 2016, admitted that “On the VAS segment, we believe that the absence of detailed regulation with appropriate market segmentation is responsible for interconnect disputes”.

Nigeria CommunicationsWeek’s investigations show that telcos indebtedness to these content providers has been skyrocketing since 2013.

In the VAS market, there are both operators and licensees. While the operators focus on special numbering, the licensees focus on content provisioning using short codes and they are the worst hit following inadequacies in the market.

The licensees numbering over one hundred have in the past sought the intervention of the Value Added Services Providers Association of Nigeria (VASPAN) and the Association of Telecommunications Operators of Nigeria (ATCON) with tones of letters written in that regard.

Nigeria CommunicationsWeek recalled that in 2013, NCC took first step to put in place, regulatory framework to protect consumers and also create revenue streams for service providers in the industry.

The exponential growth in the Nigerian telecoms industry gave rise to the evolution of VAS, where its operators provide support communications services to subscribers, via the smartphone.

They provide plethora of services such as news breaks, ring back tunes, telemarketing, mobile entertainment, flight information, among others. But such services are becoming a nuisance to telecoms subscribers as they constitute unethical practice, forcing unsolicited text messages on subscribers and compulsorily billing them for the services.

Revenue Sharing Formula 
Till now, there has not been regulatory intervention to decide the revenue sharing formula hence it has been a business agreement of the telecom operator and the licensee involved.

It was discovered that the sharing formula varies depending on the bargaining powers between a licensee and the telecom operator. While some agree for revenue sharing on 40:60 percent with the telco taking the lion’s share, the least ratio is 15:85 per cent.

For instance, in pre-licensing era, Econet paid 60% of generated VAS revenue to the licensee. The peak of the market was between 2012 and 2013 but has been on downward trend since 2014.

The operators are also complaining that since revenue on voice calls started dropping, it has also affected the VAS segment, but the licensee have argued that they should be allowed to leverage on the data segment to shore up the revenue.

The debts are building up that a lot of VAS companies are folding up.

A particular VAS licensee which generated over one trillion naira for a big telco between 2014 and first quarter 2016, with a substantive agreement to be paid 20% of the revenue, has yet to receive any payment.

Even when the operator later agreed to pay, with a credit note, several months after the agreement is yet unfulfilled.

According to one of the licensees, “Some other operators if they agree to pay you they slash the percentage to their satisfaction, telling you they deducted commissions”.

When contacted on the matter, Mr. Hyacinth Anucha, coordinator, Value Added Service at ATCON, said that available documents show some discrepancies in the system requiring NCC’s regulatory intervention to sanitize the sub-sector.

“Although I cannot categorically say that this operator owns this VAS licensee this amount or the other, but there is need for regulatory intervention to make all parties feel fulfilled. If we should say NCC should intervene this year that means next year they are still going to intervene in the market. But if there is policy document in place it will deter anyone from owing while the VAS licensees leave up to their expectations too.

Speaking on the implications of the debts on the industry, he said, “Today we talk about local content and there is a framework for it. Then, we are not paying the people that are providing the content, of course we are sending them out of the market; that will also amount to job lose, sending a lot of people back to the labour market and encouraging crime. The youths are innovative. There must be a policy that supports them. If not, the smaller businesses will die. That is why believe there should be a policy to ensure the bigger players so not kill the smaller players”.

He however admitted that NCC has made efforts in the past to ensure the debts are recovered. “But what we are saying is that instead of intervention policy, there should be a regulatory policy on ensure these debts are not continued to be owned.

Recounting the number of VAS licensee that have closed shop due to stifle market forces, “About 30% of them are off. If you check you will not see them again”.

Meanwhile, Professor Umar Danbatta, EVC of NCC represented by Engineer Ubale Maska, executive commissioner (Technical Services) at the Commission gave some regulatory insights into VAS and Interconnect markets at TERF 2016.

He said that the Commission’s approach to interconnect and VAS debts in the telecom industry is persuasive.

The EVC said, “The regulator is not interested in micro managing financial and relationships between, and among service providers, that have been substantially protected by subsisting commercial agreements.

“Interconnect debts have not been really a big issue in the industry except in cases of disputes. But there have been cases of interconnect fees disputes between service providers. In such cases, the regulator has intervened. In the past one year, such intervention has resulted in payments of about N10.5 Billion from about reported N17 Billion disputed interconnect debts. Agreements have also been reached for the settlement of outstanding debts.

“On the VAS segment, we believe that the absence of detailed regulation with appropriate market segmentation is responsible for interconnect disputes. We have received reports, especially from the VAS providers, of alleged exploitation by the big operators. On the other hand, the service providers have complained about the parasitic nature of this service.   There is also a fusion of roles between the identified market segments, resulting in distortions in the market”.

Prof. Danbatta added that the Commission has conducted a consultative process and is about concluding arrangements for introduction of a regulation to guide the activities of the VAS market. This will substantially address the issues arising from VAS interconnect debt.

 


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NITDA Showcases Nigeria’s Startup Framework as Model for Angola

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National Information Technology Development Agency (NITDA) has reaffirmed its commitment to building a coordinated and inclusive digital ecosystem in Nigeria, further strengthening its role as an ecosystem orchestrator.

NITDA Showcases Nigeria’s Startup Framework as Model for Angola

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This was disclosed during a working visit centred on Nigeria’s startup ecosystem framework, where the Director General of NITDA, Kashifu Inuwa, was represented by the Director of Stakeholders Management and Partnerships, Dr Aristotle Onumo.

Speaking during the visit, the DG said NITDA was established to drive coordinated and sustainable information technology development in Nigeria, leveraging both its regulatory and developmental mandates, serving as an ecosystem orchestrator that fosters collaboration, innovation, and growth across the digital economy.

He stated that these reforms are aligned with the Federal Government’s Eight-Point Agenda and reflected in NITDA’s Strategic Roadmap and Action Plan (SRAP 2.0), which is built around eight strategic pillars designed to accelerate the growth of Nigeria’s digital economy.

According to him, a key objective of the roadmap is to position Nigeria as a technologically driven nation that promotes inclusive economic development through innovation. He highlighted digital literacy as a major priority, with NITDA targeting 70 percent digital literacy by 2027 under the National Digital Literacy Framework, with a long-term goal of achieving 95 percent by 2030.

Other priority areas, he said, include ecosystem development, IT talent advancement, expansion of digital infrastructure, policy implementation, and research-driven innovation.

The visiting delegation from Angola’s National Institute of Support for Micro, Small and Medium Enterprises (INAPEM), led by Chairman of the Board of Directors (PCA) and Chief Executive Officer, Bráulio Augusto, commended Nigeria’s progress in implementing the Nigeria Startup Act and described the country as a valuable model for shaping Angola’s own startup legislation.

Augusto disclosed that Angola’s Startup Law has received initial parliamentary approval and is now entering the implementation stage. He expressed interest in understanding how Nigeria transitioned from legal adoption to practical execution, particularly in areas such as startup labelling, incentive management, ecosystem mapping, investor registration, and the operation of the Nigeria Startup Portal.

According to him, Angola is currently developing the Startup Angola Programme under its Digital Entrepreneurship Support Programme, aimed at building a structured and integrated startup ecosystem rather than isolated interventions.

The programme will focus on institutional strengthening, startup funding, support for business development service providers, expansion of innovation hubs, and partnerships with international accelerators.

He added that Nigeria’s experience is especially relevant as Angola seeks solutions to challenges including informality, limited access to finance, youth unemployment, digital inclusion gaps, and restricted market access for small and medium-sized enterprises.

The INAPEM chief also requested further technical insights into Nigeria’s National Startup Council, its member selection process, and the governance structure of the Nigeria Startup Portal.

The visit highlights growing collaboration among African nations in digital policy development and further reinforces Nigeria’s position as a reference point in shaping startup ecosystem frameworks across the continent.


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NITDA, FMCIDE Deepen Collaboration on Nigeria’s Digital Transformation

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Kashifu Inuwa, National Information Technology Development Agency (NITDA), has reaffirmed the Agency’s commitment to deepening collaboration with the Federal Ministry of Communications, Innovation and Digital Economy (FMCIDE) to accelerate Nigeria’s digital transformation and strengthen policy alignment across the sector.

NITDA, FMCIDE Deepen Collaboration on Nigeria’s Digital Transformation

The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, taking the Permanent Secretary of the Federal Ministry of Communications, Innovation and Digital Economy, Mr. Nadungu Gagare, on a tour of the newly commissioned Innovation Space during the Permanent Secretary’s working visit to the Agency’s corporate headquarters.

Speaking during a courtesy visit by the Permanent Secretary of the Ministry of Communications, Innovationand Digital Economy, Mr. Nadungu Gagare, to NITDA headquarters, Inuwa described the engagement as a significant demonstration of the Ministry’s support and leadership, noting that sustained collaboration between both institutions is essential to delivering Nigeria’s digital economy agenda.

The NITDA Director General recalled previous engagements with the Ministry, including a familiarisation visit during which the Agency shared its strategic roadmap and ongoing initiatives, noting that continuous dialogue has strengthened alignment between both institutions.

He highlighted key policy areas requiring continued collaboration, including the development of a national sovereign cloud infrastructure and a comprehensive cybersecurity policy framework.

“We are awaiting the Ministry’s guidance on how to move forward, particularly on the national cloud and cybersecurity policies,” he said, while emphasising the importance of clear institutional boundaries and mutual respect in enhancing operational effectiveness and inter-agency cooperation.

Inuwa also revealed that NITDA has been at the forefront of implementing the Performance Management System (PMS), having introduced the framework internally several years before its adoption across the Federal Civil Service.

“We started PMS about four years ago. What we have now at the national level actually originated from our internal reforms,” he disclosed, adding that initiatives such as Project NEXT have strengthened accountability, role clarity, and measurable outcomes across the Agency.

“If you perform well, you are rewarded. If not, there are consequences. Even promotions are tied to performance,” he added.

The Director General further highlighted NITDA’s transformation from a traditional regulatory institution into a dynamic ecosystem enabler focused on innovation, inclusion, and national development.

“We are building a high-velocity organisation—one that is agile, inclusive, and driven by innovation,” he said, explaining that the Agency is embracing a more flexible and entrepreneurial culture that empowers staff to contribute ideas and drive institutional growth.

In his remarks, the Permanent Secretary of the FMCIDE, Mr. Nadungu Gagare, reaffirmed the Ministry’s commitment to strengthening collaboration with its agencies, describing partnership as fundamental to achieving sustainable progress in Nigeria’s digital transformation journey.

“If there is no partnership, there is nothing that can be achieved. But with partnership and collaboration, a lot can be accomplished, and that is exactly what we are seeing now,” he stated.

Gagare explained that the visit forms part of the Ministry’s ongoing engagement with agencies under its supervision to strengthen policy coordination, assess progress, and address operational challenges requiring higher-level intervention.

He commended the management and staff of NITDA for their dedication to advancing Nigeria’s digital innovation ecosystem, acknowledging the Agency’s contributions to digital literacy, innovation, cybersecurity awareness, and the creation of opportunities for startups and young innovators.

“NITDA has continued to play a pivotal role in shaping Nigeria’s digital future through the promotion of information technology development, digital literacy, innovation, and regulatory standards,” he said.

The Permanent Secretary also stressed the importance of policy coherence among institutions within the Ministry, noting that agency mandates are interconnected and must be implemented seamlessly.

“Your mandates are inputs into one another. That is why we need tight collaboration so implementation can go smoothly,” he said, while assuring NITDA of the Ministry’s continued guidance and institutional support.

He further highlighted ongoing Federal Civil Service reforms, particularly the adoption of the Performance Management System, which promotes accountability, clear target-setting, and measurable performance outcomes.

“When everything needed for performance is made available and targets are not met, consequence management follows. Where targets are exceeded, there is reward. This is how we drive performance in the service,” he noted.

The visit showcases the shared commitment of both FMCIDE and NITDA to advancing Nigeria’s digital economy through stronger collaboration, innovation, and effective governance, with the strengthened partnership expected to play a critical role in delivering inclusive growth, improved service delivery, and sustainable national development.


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Upperlink, ICANN, Others Rally Global Participation for UA Day 2026

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Upperlink has announced its collaboration with the Internet Corporation for Assigned Names and Numbers (ICANN), the United Nations Educational, Scientific and Cultural Organization (UNESCO), and the Universal Acceptance Steering Group for UA Day 2026 to host a global awareness event focused on promoting a more inclusive and multilingual internet ecosystem.

Upperlink, ICANN, Others Rally Global Participation for UA Day 2026

The event, themed “Building a Truly Global, Multilingual #Internet4All”, will hold virtually on Monday 18 May 2026 by 10:00AM WAT, bringing together stakeholders across government, academia, technology, digital policy, and the Internet community to discuss the future of Universal Acceptance and digital inclusivity.

The Upperlink, ICANN, UNESCO and Universal Acceptance Steering Group’s UA Day 2026 will feature live demonstrations, expert-led strategy sessions, and conversations around enabling Internet systems, applications, and digital platforms to support all domain names and email addresses, regardless of language, script, or character length.

Speaking on the importance of the initiative, Akano Olusegun, the managing director and CEO of Upperlink Limited, noted that Universal Acceptance is critical to ensuring that billions of Internet users around the world can fully participate online using their native languages and local digital identities.

“As Africa’s digital economy continues to grow, there is an urgent need to build Internet systems that reflect linguistic diversity and provide equal access for all users. UA Day 2026 is an opportunity for stakeholders to collaborate and shape a more inclusive digital future,” Olusegun stated.

The event aligns with ongoing global efforts championed by ICANN and UNESCO to promote digital inclusion, local language accessibility, and universal Internet participation.

Developers, tech ecosystem players, policymakers, educators, Internet governance stakeholders, students, startups, and digital rights advocates are encouraged to participate in the session.

Registration

Participation is free, but interested participants are required to register to attend the event via the official registration link here (https://us06web.zoom.us/webinar/register/WN_nklQmJObT8OtS2AF_bE0fA#/registration) or QR code provided on the event flyer.


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