The Nigerian Communications Commission (NCC) has remitted N49.79 billion to the Federal Government Consolidated Revenue Fund (CRF) within the first four months of the year.
The NCC said it was in compliance with the Fiscal Responsibility Act of 2007 (FRA 2007).
Tony Ojobo, the Director of Public Affairs, NCC, in a statement, Thursday, said the figure represents “Payment on Account” in respect of operating surplus for the year 2018.
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.
NCC explained that Section 22 (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 telecoms regulator said the funds remitted are 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).
The section stipulates that “the Commission shall pay all monies accruing from the sale of Spectrum under part 1 of Chapter VIII into the Consolidated Revenue Fund (CFR).”
Prof. Umar Garba Danbatta, the Executive Vice Chairman (EVC) and Chief Executive of NCC, enumerated how telecommunications has impacted the Nigerian economy positively.
Danbatta who stated this when he paid a courtesy visit on Godwin Emefiele, the CBN Governor, recently, quoted figures released by the National Bureau of Statistics (NBS) to justify this impact.
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.
“This performance at a period of recession is very remarkable,” Prof. Danbatta explained that “we are keeping dates with the NBS to identify and track how these trends continue.”
In general terms, telecoms industry contribution to GDP in Nigeria stands at 10 per cent yearly in the last four years, Prof. Danbatta submitted.
The EVC said these figures may not tell the entire story, because investments in human and material resources are on the rise daily.
From a paltry $50 million investment in the sector in 2001, the figures stand at $70 billion as at September 2017.
