The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof Umar Danbatta, has stressed that the only way to prevent increase in telecom tariffs is for Nigerians to start creating local content that will add value to the telecom sector by reducing sector’s inputs’ importation.
Danbatta, who made this remark this at the 2nd edition of the Nigerian Telecommunications Indigenous Content Expo (NTICE 2023), pointed out that despite the rising costs and the foreign exchange (FX) shortage, telecom tariffs had been relatively stable in the country
The industry regulator, however, cautioned that tariff increase would be inevitable if the operators continue to source all the components of the telecom services from foreign countries.
The EVC clarified: “It is important to note that while Quality of Service and Quality of Experience in telecommunications services in Nigeria have continued to improve, tariffs have remained stable notwithstanding the increase in cost-of-service provision to the telecom operators.
“In order to sustain and further improve Quality of Service and Quality of Experience in telecommunications services in Nigeria, we must embrace indigenous content and value creation within the telecoms value chain, otherwise, an increase in telecoms tariff will be inevitable”, Danbatta added.
While reiterating the commitment of the Commission to the current drive by the Federal Government to position the Nigerian economy on the path of sustainable growth through policy reforms, Danbatta explained that it was in furtherance of the dream that the NCC created the Nigeria Office for Development of Indigenous Telecoms Sector (NODITS).
According to him, the NODITS is a Special Purpose Vehicle under the Commission to drive the National Policy for Promotion of Indigenous Content in the Nigerian Telecommunications Sector in July 2021.
The EVC also spoke on the achievements of the NODITS in four areas of focus which include Manufacturing, Human Capacity, Research and development (R&D), and Software and services development for the telecoms sector.
He expatiated: “Today, I am happy to inform you that NTICE is one of the achievements of NCC through NODITS because it has served not only to promote Pillar number 5 (Strategic Partnering) of the Strategic Management Plan SMP 2020- 2024 of the Commission but has also become the flagship indigenous content event for the industry.
“The Commission has also incentivized the manufacturing of a Corrugated Optical Duct (COD) that will be used to protect our fibre infrastructure from the incessant cuts experienced by our service providers.
“The Commission is equally committed to continuously supporting Micro, Small and Medium Enterprises (MSMEs) and Innovators to promote our talented young persons and ventures through Angel Investments, R&D support, exposure to Investors, and sponsorship to local and international tech events.
“Another key achievement of our policies is the ban on the importation of whole-body SIM cards which was announced at the maiden NTICE event last year.
“This ban has not only eased the burden on our demand for foreign exchange but has also created a business in excess of N55 billion for the local SIM card manufacturers in Nigeria which in turn has created direct and indirect jobs”, Danbatta added.
