NCC remits 49.7bn to FG in Q1

The Nigerian Communications Commission (NCC) said it remitted N49.7 billion to the federal government in the first quarter of 2018.

NCC’s Director of Public Affairs, Tony Ojobo in a statement on Thursday said the remittance was in compliance with the Fiscal Responsibility Act of 2007 (FRA 2007).

Ojobo said the figure represented the “Payment on Account” in respect of operating surplus for period.

“According to the FRA 2007, such payments are to be made every year after preparation of Audited Accounts.

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

“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 is clear about this – 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.’’

The director said that the funds remitted were besides “Spectrum Assignment fees which are remitted 100 per cent to the Federal Government in line with Section 17, Sub section 3 of the Nigerian Communications Act (NCA 2003).’’

For his part, Executive Vice Chairman of the Commission, Prof. Umar Dambatta said “For instance in the first quarter of 2017, telecommunications contributed N1.45 trillion to the Gross Domestic Product (GDP) while the figures rose to N1.549 trillion in the second quarter of 2017.

Disclosing that the telecoms industry contribution to Nigeria’s GDP stood at 10 per cent over the last four years, he added that the figures did not tell the entire story as investments in human and material resources rise on daily basis.

According to him, from a paltry $50 million investment in the sector in 2001, the figures stand at 70 billion dollars as at September, 2017.

He said that Value Added Services (VAS) segment of the sector investment is over $200 million and estimated to hit $500 million by the turn of 2021.

“The industry has provided direct and indirect employment to millions of Nigerians and over 150 million subscribers are connected to various networks with broadband penetration currently at 22 per cent, according to the UNESCO/ITU Sustainable Development Goal (SDG).”

Leave a Reply