NCC remits N49.7bn to federation account in 2018 Q1

The Nigerian Communications Commission (NCC) says it has remitted N49.7billion to the federation account in the first quarter of 2018.

This is in compliance with the Fiscal Responsibility Act of 2007 (FRA 2007), NCC said in a statement on Thursday.

“The Nigerian Communications Commission (NCC) remitted N49,792,870,113 (forty-nine billion, seven hundred and ninety-two million, eight hundred and seventy thousand, one hundred and thirteen naira only) to the Federal Government Consolidated Revenue Fund (CRF) within the first four months of 2018.

“This figure represents ‘Payment on Account’ in respect of operating surplus for the year 2018,” the statement signed by NCC’s Director of Public Affairs, Tony Ojobo, said.

According to the FRA 2007, such payments are to be made every year after preparation of Audited Accounts, Daily Trust can report.

However, the NCC has taken the initiative to be making payments on account as it generates revenue.

Section 22, Sub section 1 of the Act states that “Notwithstanding the provisions of any written law governing the corporation, each corporation shall establish a general reserve fund and shall allocate thereto at the end of each financial year, one fifth of its operating surplus for the year.”

Section 22, Sub section 2 of the Act adds: “The balance of the operating surplus shall be paid into the Consolidated Revenue Fund (CRF) of the Federal Government not later than one month following the statutory deadline for publishing each corporations account.”

But the funds remitted, according to NCC, are besides Spectrum Assignment fees which are remitted 100 percent to the Federal Government in line with Section 17, Sub section 3 of the Nigerian Communications Act (NCA 2003).

The section states that “The commission shall pay all monies accruing from the sale of spectrum under part 1 of Chapter VIII into the Consolidated Revenue Fund (CFR).”

It would be recalled that in the first quarter of 2017, telecommunications contributed N1.45 trillion to the Gross Domestic Product (GDP) while the figure rose to N1.549 trillion in the second quarter of the year.

In general terms, telecoms industry contribution to GDP in Nigeria stands at 10 percent yearly in the last four years, Prof. Danbatta submitted.

From a paltry $50 million investment in the sector in 2001, the figures stand at $70 billion as at September, 2017.

The Value Added Services segment of the sector investment is over $200m and estimated to hit $500m by the turn of 2021.