The Nigerian Communications Commission (NCC) has embarked on a regulatory initiative to sensitize the industry stakeholders about the need for proper and continuous risk identification with a view to managing such risks before they affect the health of the industry.
To ensure the success of initiative, the Commission hosted a two-day maiden conference at its headquarters in Abuja, where the Executive Vice Chairman, Prof. Umar Danbatta, pointed out that it had become imperative to minimize risks in the industry for improved services to telecom subscribers nationwide in line with global best practices
Participants at the conference with the theme ‘Nigerian Telecommunications Industry: Managing the Emerging Risks and Embracing Risk Opportunities’ stressed the need 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 and in effect, ensure sustainable and impacting growth.
Speaking at the forum, the EVC representative and the commission’s Director of Policy, Competition and Economic Analysis, Yetunde Akinloye, said the conference was organized to examine myriads of issues that challenge the implementation of the National Digital Economy Policy & Strategy (NDEPS) 2020-2030, and to enhance the development of a sustainable ICT sector in Nigeria.
The EVC said: “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.”
He told participants that the commission had been at the forefront of ensuring that the telecoms industry is not adversely impacted by these uncertainties/risks.
The industry regulator pointed out that one of the commission’s strategic visions was 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.
Danbatta expatiated: “While risk management has been critical in our regulatory service delivery, we acknowledge that all stakeholders must be concerned about the varied uncertainties that confront the Industry. There is no gainsaying the fact that the Information and Communication Technologies Sector is inherently filled with several business and technology risks.
“It is, therefore, important that regulatory risks be minimized to ensure that services are not disrupted, and consumers obtain the best and latest services that are globally available. The Commission in a bid to ensure that operators in the industry enjoy a conducive operating environment has had cause to seek government interventions and collaborate with other Agencies of Government in addressing major sectoral risks.
“These risks include cybersecurity and online fraud, regulatory burden, multiple taxation, vandalism of telecommunication infrastructure, right of way challenges, access to foreign exchange, inter-industry indebtedness, among others”, he added.
In his paper titled ‘X-raying Telecommunications Risk Radar: The Operators’ Perspective’, a facilitator at the event, Eniola Olugboyega, who spoke to 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.
He listed some of the telecommunication risks as including 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.
