By Mercy Aikoye
The Nigerian Communications Commission (NCC) has attributed its low revenue generation in 2024 to the failure of telecommunications companies to purchase 5G Spectrum licenses.
According to the NCC’s Director, Financial Services, Yakubu Gontor, market conditions were not favorable for the auction of the 5G Spectrum.
Gontor explained that two large operators already possess 5G spectrum but are underutilizing it. The third largest operator, who was expected to purchase the spectrum, decided not to due to market conditions. This left the NCC with only one potential buyer, making it challenging to generate revenue.
Despite a 50% telecom tariff hike, the NCC does not expect to generate more revenue from spectrum sales in 2025. Gontor stated that the priority for telecommunications companies is to improve services, and spectrum is not their primary investment focus.
However, the introduction of new technologies, including 6G, is expected to generate significant revenue for the federal government. Gontor predicted that revenue from spectrum sales could exceed $1 billion.
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, noted that the Commission had to revise its projections for 2025 due to the challenges faced in 2024. The Co-Chairman of the Committee, Senator Aliyu Ikrah Bilbis, stated that the NCC’s submissions would help the Committee ask questions and improve the Commission’s operations in 2025.
