DANBATTA: DIGITAL TRANSFORMATION KEY TO NIGERIA’S DEVELOPMENT
building the critical mass adoption and use of telecommunications services in order to achieve the right broadband internet penetration. We have a National Broadband Plan which the NCC is at the forefront of pushing it to ensure that we have a deeper broadband penetration for Nigeria. We have currently achieved 22 per cent broadband penetration in the country, which is above the minimum target of achieving 30 per cent broadband penetration, with plans to achieve the maximum target by the end of this year. So the NCC is also targeting massive capacity building in schools and colleges, including tertiary institutions and communities outside the schools. The other aspect of the digital transformation for Nigeria is in the area of telecoms infrastructure. In order to boost the rollout of telecoms infrastructure across the country, we decided to zone the country into seven zones and licensed Infrastructure Companies (InfraCos) in all the seven zones. The role of the InfraCos is to provide broadband infrastructure that will facilitate faster rollout of broadband service across the country. All these initiatives are targeted at enhancing digital transformation in the country.
Are there incentives that will motivate the InfraCos to roll out broadband infrastructure much faster? To ensure rapid rollout of broadband infrastructure across the country, the NCC provided some palliatives in the form of incentives for all InfraCos that are willing to roll out in rural communities, including underserved and unserved communities. Aside the incentives, the InfraCos licence was made very cheap to encourage InfraCos. NCC is not interested in making money out of InfraCos, but to encourage them to roll out broadband infrastructure in all nooks and crannies of the country. Beyond women, youths and SMEs, we also have plans for the physically challenged persons and we give them opportunities to belong to the country’s digital transformation process.
What is your view about government’s position on MTN, where the telecoms company was asked to return money it repatriated from the country between 2007 and 2015 and to pay tax arrears within the same period, totaling $10.134 billion? Government is an institution whose actions are guided by law. For example, the CBN is a government institution that regulates the financial sector of the economy, while the Federal Inland Revenue Services (FIRS)is another government institution that regulates the tax sector of the economy and the NCC regulates the telecoms sector of the Nigerian economy. What is happening between MTN and the Nigerian government is based on regulatory issues in their different sectors. Although the issue is currently centred on financial and tax regulation, but there are public fears and outcry that the action taken so far by government could cause a ripple effect on other sectors of the economy because telecommunications, as it were, which is the core business of MTN, cuts across all sectors of the Nigerian economy. As telecoms regulator, we are aware that there is no sector of the Nigerian economy that does not enjoy the services of telecoms sector, and we are concerned about the current MTN issue with government because MTN Nigeria is a licensed operator under the supervision of NCC. But I will like to say that although the alleged breach is purely on financials and taxes, the NCC as a regulator of the telecoms sector, is doing everything possible to ensure quick and amicable resolution of the matter. We are already intervening, just the same way we intervened in previous matters concerning MTN Nigeria. As a regulator with human face, we will always provide guidance to all our licensed operators, both big and small, during crisis of any sort. MTN has been in touch with us over the recent matter and we have mapped out strategies to address the issue, which I will not like to divulge to the media as at the moment.
What is NCC doing about additional licensing of spectrum frequency for telecoms operators? The issue of spectrum licences is ongoing, and this is closely followed by the renewal of licences. We had a scenario when MTN bought over Visafone in 2015 and later wrote the commission to take over the shares of Visafone and approval in principle was granted MTN. Having met the conditions, the approval of transfers of 99.999 per cent of shares was conveyed to MTN. Subsequently MTN wrote for the transfer of the 800MHz spectrum of Visafone and we made MTN realised the implication of transferring spectrum licence, which is a national resource. There is another 700MHz spectrum belonging to the broadcast industry that was in the custody of the National Broadcasting Commission (NBC) that was long sold to MTN by the NBC, which again,has the same condition like any other national licence. There were industry agitations after the sale of the 700MHz spectrum to MTN and the spectrum was later reallocated to NCC. But instead of NCC conducting a fresh auction for the spectrum, the NCC decided that MTN should keep the spectrum since it has already been paid for, but the NCC insisted that MTN must use the 700MHz spectrum for the provision of telecommunication services only and not for broadcast services. This has been concluded and MTN is very happy about the decision of the NCC. This of course shows the true position of our human face as a regulator to MTN and all other telecoms operators, both big and small. But the Visafone 800MHz spectrum cannot be given to MTN, because it is a national resource that belongs to the NCC and there are dominant issues involved. Other operators have kicked against giving MTN the Visafone 800MHz spectrum without auctioning it because they could be interested in the spectrum as well. To avoid dominance, we are still studying the issue and will soon come out with our position on the 800MHz spectrum.
What is NCC’s view about the bank-led mobile money operation in Nigeria as against the telco-led in Kenya, where the penetration of mobile money in Kenya has been described as high and encouraging? Mobile money in Nigeria is bank-led and its penetration level is still very low since its inception, which is put at one per cent penetration. With a population of about 190 million, one per cent mobile money penetration is still on the low side and it has not improved and not encouraging also. I have it on good record that about 40 per cent of the total 190 million population of Nigeria is financially excluded. The reason for the low penetration of mobile money service in Nigeria is because of the modules of operation, which is bank-driven, yet banks leverage on the infrastructure and network of the telecommunication operators to drive mobile money in Nigeria. It appears they do not have the capacity to drive mobile money and the telecoms operators have expressed their desire to be part of the driving processes, but this has not been approved by the CBN that regulates mobile money and financial services operation in Nigeria. The telecoms operators have said severally that they have the capacity and infrastructure to drive mobile money and that they are willing to provide additional capacity, yet mobile money is still bank-led and the penetration level has been too slow. I am convinced that once CBN licenses telecoms operators to provide mobile money service, the penetration level will increase and the level of financial exclusivity will be drastically reduced.
To ensure rapid rollout of broadband infrastructure across the country, the NCC provided some palliatives in the form of incentives for all InfraCos that are willing to roll out in rural communities, including underserved and unserved communities. Aside the incentives, the InfraCos licence was made very cheap to encourage InfraCos. NCC is not interested in making money out of InfraCos, but to encourage them to roll out broadband infrastructure in all nooks and crannies of the country