Lawmakers Investigate NCC’s Failure to Provide Network Services Amid Funds Availability

Udora Orizu in Abuja

The House of Representatives at plenary yesterday, resolved to investigate the failure and inability of the Nigerian Communications Commission (NCC) to provide wide spread availability and usage of mobile telecommunications networks services throughout the country in spite of availability of Universal Service Provision Fund (USPF).

Consequently, the House set up an ad-hoc committee chaired by Bamidele Salam (PDP, Osun) to carry out the investigation which would cover total accruals into and the utilisation of USPF by NCC since inception of the fund.

This was sequel to the amendment and adoption of a motion moved by Hon. Sergius Ogun (PDP, Edo).
Moving the motion, Ogun said in Section 4 of the Nigerian Communications Act, 2004, the NCC was saddled with the responsibility of facilitating investments in and entry into the Nigerian market for provision and supply of communication services, equipment and facilities.

He said the House was aware that in the wake of the rapid expansions of the Global System of Mobile Communication (GSM) in Nigeria, most of the mobile telecommunication network operators were reluctant to move to the rural areas owing to the business considerations.

He said, “Also cognisant that a community reading of the provisions of sections 114 and 118 of the Nigerian Communications Act shows that the structure, governance, administration and control of the Universal Service Provision Fund (USPF) shall be as determined (or domiciled in) the NCC. Also aware that the Nigerian Communications Act, Cap N97, Laws of the Federation of Nigeria, 2004, empowers the Nigerian Communications Commission (NCC) to receive two and half percent (2.5%) of the annual turnover of the mobile telecommunication network operators as annual license renewal fee.

“Further aware that the NCC is expected to utilise the funds generated from the contributions of mobile telecommunication network operators, for implementing Universal Access Strategy and programme in accordance with Federal Government’s policy thereon (as enshrined in section 4 of the Act).

“NCC on its own, decided to contribute 40 per cent of the fund generated from the 2.5 per cent annual turnover from mobile telecommunication network operators translating to one per cent of the annual turnover of the operators to the USPF, a practice common throughout Africa.
“Also, informed that the Universal Service Provision Fund (USPF), is to be used to build infrastructure in the underserved and unserved areas of Nigeria, which can subsequently be made available to the mobile telecommunication network operators, who will in turn utilise such infrastructure in serving the areas that are hitherto underserved and unserved.

“Further informed that the first major infrastructure project attempted by the NCC in this regard was the Emergency Response System (ERS), which led to the construction of Emergency Communications centers all over the country, with little or no results, despite the fact that the contract was awarded in millions of US dollars with annual fiscal appropriations for the said project.”

Also at the plenary, the House adopted a motion sponsored by Hon. Shina Peller, who urged the federal government of Nigeria to urgently implement policies that would enhance the capacity of our creative industries as major revenue earners.

The lawmakers while agreeing that they would hold a national summit to understand the creative industry better, also urged the Minister of Information and Culture, Lai Mohammed, to as a matter of priority to create and execute policies to strengthen the creative industries.

They further urged the federal government and the National Assembly to increase the budgetary allocation of the Ministry of Information and Culture in the 2024 budget estimate for optimal performance.