The Association of Licenced Telecommunications Operators of Nigeria (ALTON), has called for stronger and effective regulatory independence for the Nigerian Communications Commission (NCC), harmonisation of telecom taxes to curb the current cases of double taxation, a regime of predictable fiscal framework and improved protection of fibre and other communication infrastructure The association made the call during a congratulatory visit to the newly-appointed Chairman of the NCC Board, Dr. Idris Ibikunle Olorunnimbe, recently.
The association noted that sustaining Nigeria’s digital economy would depend on securing three key pillars of a visibly independent regulator, a clearly defined single-sector authority, and a harmonised and predictable fiscal environment. These, the association said, would help to boost and sustain investor confidence in the sector, which would go a long way to further strengthen the government’s drive towards the development and sustainable growth for the country’s digital economy.
Speaking during the visit in Abuja ALTON chairman, Engr Gbenga Adebayo, said Dr. Olorunnimbe’s appointment came at a critical time for the sector, which he said was currently undergoing recovery and recalibration after years of pricing pressures, infrastructure challenges, and foreign exchange constraints. Adebayo expressed confidence in the ability of the NCC Board under Olorunnimbe’s supervision to meet and surpass expectations not only of President Bola Tinubu in strengthening institutional governance and ensuring sector sustainability but also those of the stakeholders.
He lauded the executive vice chairman of NCC, Dr. Aminu Maida, and his management team for resolving the longstanding Unstructured Supplementary Service Data (USSD) debt crisis, which had grown to nearly N300 billion over a four- year period, thus posing a systemic threat to both the telecom and digital financial services ecosystems.
“The migration to end-user billing has eliminated the debt burden and created a more sustainable framework for telecom operators and financial service providers. Similarly, federal government’s approval of cost-reflective tariff adjustments last year has helped to avert a potential collapse of the industry after 13 years of static pricing amid rising inflation, currency volatility, ageing infrastructure, and escalating energy costs.
“Investment slowed and networks became increasingly strained. The sector was approaching a stage where service rationing was becoming a real possibility, but the tariff review had enabled operators to gradually return to profitability and resume capital expenditure planning,” Adebayo said.
On macroeconomic reforms, he acknowledged that the recent foreign exchange policy adjustments by the Federal Government has improved forex availability and has allowed operators to meet international obligations related to bandwidth, satellite capacity, software licensing, and equipment sourcing. The ALTON boss observed that renewed investor confidence was already evident in recent infrastructure investment announcements in the country’s telecom tower segment.
He also lauded the government over the designation of telecommunications infrastructure as Critical National Information Infrastructure (CNII), through an Executive Order of the president, describing the move as transformative for network protection against vandalism and fibre damage.
