NCC Seeks Identification, Elimination of Risks in Telecom Sector
Samuel Ohwovoriole
The Nigerian Communications Commission (NCC) has embarked on a regulatory step to sensitise the industry about the need for proper and continuous risk identification with a view to managing such risks before they affect the health of the industry.
Speaking during a two-day maiden conference hosted by NCC in Abuja, its Executive Vice Chairman, Prof. Umar Garba Danbatta, said: “It has become imperative to minimise risks in the industry to ensure that services are not disrupted, and that consumers obtain the best services that are globally available.”
The conference with the theme: “Nigerian Telecommunications Industry: Managing the Emerging Risks and Embracing Risk Opportunities,” called for collaboration between the regulator and other stakeholders in the industry, to achieve multi-stakeholder strategies aimed at identifying and addressing emerging risks in the telecommunications sector to ensure sustainable and impacting growth.
Director of Policy, Competition and Economic Analysis, Yetunde Akinloye, who represented Danbatta, said the essence of the forum was to examine myriads of issues that challenge the implementation of the National Digital Economy Policy and Strategy (NDEPS) 2020-2030, and to enhance the development of a sustainable ICT sector in Nigeria.
“The focus of this conference is to bring to the fore the ever-rising uncertainties in the global economy and the attendant regulatory/operational risks in the areas of increased data security regulations, new partnerships and transforming business models, fast-changing mix of mounting capital expenditure (CAPEX) burdens, shifting market structures, newly emerging disruption scenarios, regulatory and policy challenges amongst others,” Danbatta said.
The EVC told participants at the event, which also featured virtual participation that the commission has been at the forefront of ensuring that the telecoms industry is not adversely impacted by these uncertainties/risks. He stated that one of our Strategic Visions is to ensure a competitive market for the communications services that foster fair inclusion of all players, promote local content and innovative services in ways that facilitate new investment, job creation and consumer satisfaction.
In his paper presentation titled ‘X-raying Telecommunications Risk Radar: The Operators’ Perspective’, the event facilitator, Eniola Olugboyega, who spoke about issues of concern to operators, said that risk-taking can have positive or negative impact on businesses. He also stated that most common losses from improper management of risk in the sector include customer dissatisfaction, fines and litigation, product failure, and loss of business opportunities, among others. According to him, “Effective risk management aids effective decision making, prevents financial and reputational loss and addresses potential threats. Thus, telecommunication risk from the operators’ perspective includes regulatory risk, insecurity, data breach risk, foreign exchange risk, rising CAPEX risk, human resource risk, and the inability to take advantage of new business models.”
