The Nigerian Communications Commission (NCC) has attributed its low revenue generation in 2024 to the failure of telecommunication companies to purchase 5G Spectrum licenses.
According to NCC’s Director, Financial Services, Mr. Yakubu Gontor, market conditions were not favorable for the auctioning of the 5G Spectrum.
Gontor explained that two unnamed large operators, had already possess 5G spectrum but are underutilizing it.
The third largest operator, who was expected to purchase the spectrum, according to him, decided not to do so due to deficit market conditions.
This left the NCC with only one potential buyer, making it challenging to generate revenue through the spectrum.
Despite a 50% telecom tariff hike, the NCC does not expect to generate more revenue from spectrum sales in 2025, he added.
He further said that the priority for telecommunication companies is to improve services, and deepening their Anchorage in the spectrum is not their primary investment focus for now.
However, the introduction of new technologies, including 6G, he noted, is expected to generate significant revenue for the federal government in the future.
Gontor predicted that revenue from spectrum sales alone, could exceed $1 billion.
According to him, the NCC has projected a total revenue of N272.433 billion for 2025.
This includes an operating levy of N205.7 billion, spectrum fees of N49.784 billion, and other income. The Commission’s total recurrent expenditure is projected at N95.668 billion, with a capital expenditure of N10.735 billion.
In 2024, the NCC generated N195.8 billion in revenue, with N111 billion remitted to the Consolidated Revenue Fund (CRF).
The Commission had targeted N292.3 billion but fell short due to its inability to auction one slot of the 5G Spectrum.
The NCC’s Chief Executive Officer/Executive Vice-Chairman, Aminu Maida, while speaking, stated that the Commission had to revise its projections for 2025 due to the challenges faced in 2024.
The Co-Chairman of the Committee, Sen. Aliyu Ikrah Bilbis, emphasised that NCC’s submissions would help the Committee ask questions that would help improve on the Commission’s operations in 2025.
