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NCC Blames Low 2024 Revenue On Failed 5G Spectrum Sales

By Benjamin Abioye

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NCC low revenue 5G spectrum

The Nigerian Communications Commission (NCC) has revealed that its low revenue in 2024 was mainly due to telecommunications companies failing to purchase 5G spectrum licences.

Yakubu Gontor, the NCC’s Director of Financial Services, and Aminu Maida, its Chief Executive Officer/Executive Vice Chairman, shared this during the 2025 budget defense before the National Assembly Joint Committee on Communications.

Gontor explained that the NCC could not auction the 5G spectrum mainly because of unfavorable market conditions. He said, “Two large operators already have 5G spectrum, and they are actually underutilising it. The third-largest operator, whom we were relying on to purchase the spectrum, unfortunately indicated that this was not the right time, stating that their strategy was to expand their fortune.” He added that only one potential buyer remained, but 9Mobile was currently going through a financial restructuring.

Despite a 50 percent telecom tariff hike, Gontor noted that the NCC might not generate significant revenue from spectrum sales this year.

He explained, “We have also made it clear to them (telcos) that the priority this year is to improve service. Spectrum is one of the resources required, but unfortunately, when you look at where they prioritise their investments, it’s not spectrum.”

However, Gontor pointed out that the introduction of new technologies, such as 6G, could help the Federal Government generate over $1 billion in revenue. He said, “When it comes to spectrum sales, it follows a 10-year cycle for two reasons. First, just like leasing a piece of land, you celebrate when they pay for a 10-year lease, but for the next nine years, you rely on that one-time payment.”

Regarding the 2025 budget, Gontor stated that the NCC is projecting a total revenue of N272.43 billion. This includes N205.7 billion from operating levies, N49.78 billion from spectrum fees, and other income sources. The NCC’s recurrent expenditure is projected at N95.67 billion, with capital expenditure at N10.74 billion, and N30.13 billion allocated for special projects.

Maida discussed the 2024 budget performance, revealing that the NCC generated N195.8 billion in revenue that year. He said that N111 billion of this was remitted to the Consolidated Revenue Fund. “N137.6 billion was earned from annual operating fees, while N26.4 billion came from spectrum fees, among other revenue sources,” he explained.

Maida also mentioned that the NCC had targeted N292.3 billion in revenue for 2024 but fell short due to its inability to auction one slot of the 5G spectrum. He added, “That also affected the transfer to the Federal Government because a significant proportion of spectrum fees is remitted to the CRF.” He also pointed out, “But if you recall, in the 2024 budget, we also assumed that we would receive a 12.5 per cent cost of collection from the Federal Government.”

Finally, Aliyu Bilbis, co-chairman of the committee, stated that the NCC’s submissions would provide members with the necessary information to ask relevant questions aimed at improving the commission’s operations in the 2025 fiscal year.

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