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House probes NCC over telecom fund, poor network

FILE PHOTO: Members of the House of Representatives at plenary The House of Representatives has resolved to investigate the Nigerian […]

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FILE PHOTO: Members of the House of Representatives at plenary

The House of Representatives has resolved to investigate the Nigerian Communications Commission (NCC) over its use of the Universal Service Provision Fund (USPF), which is funded by a 2.5 % levy on the annual turnover of mobile telecommunications operators as a licence renewal fee. At Thursday’s plenary, members voted to establish an ad hoc committee to “investigate the failure/inability of the NCC to promote widespread availability and usage of mobile telecommunication network services throughout Nigeria, including the underserved and un‑served areas.” The panel must report back within four weeks for further legislative action.

Member Mark Gbillah amended the motion to include an inquiry into the accruals and utilisation of the USPF by the NCC since the fund’s inception. The amended motion was unanimously adopted. Speaker Femi Gbajabiamila appointed a probe panel comprising Bamidele Salam (Chairman), Jide Jimoh, Unyime Idem, Aisha Dukku, Sani Bala, Babajide Obanikoro, Abubakar Fulata, Chinedu Ogah, and motion sponsor Sergius Ogun. The urgent public‑interest motion was titled, “Need to Investigate the Non‑Provision of Mobile Telecommunication Network Services to the Underserved and Unserved Areas of Nigeria by the Nigerian Communications Commission Despite the Availability of Universal Service Provision Fund.”

While moving the motion, Ogun cited Section 3 of the Nigerian Communications Act (Cap N97, Laws of the Federation of Nigeria, 2004), which establishes the NCC as the regulator of the communications sector. He noted that Section 4 assigns the NCC the duty of facilitating investment and market entry for communication services, equipment, and facilities. Section 112(1) empowers the NCC to design a system that promotes widespread network availability and usage, especially in unserved and underserved areas, through the Universal Service Provision. Ogun emphasized that Sections 114 and 118 dictate that the structure, governance, administration, and control of the USPF reside within the NCC.

Ogun observed that, despite rapid expansion of the Global System for Mobile Communications in Nigeria, many operators have been reluctant to serve rural areas for commercial reasons. The Act authorises the NCC to collect 2.5 % of operators’ annual turnover as a licence renewal fee, which should be used to implement the Universal Access Strategy and Programme in line with federal policy (Section 4). However, the NCC has chosen to allocate only 40 % of the fund generated from this levy—equivalent to 1 % of operators’ turnover—to the USPF, a practice he said is common across Africa. The USPF is intended to fund infrastructure in underserved regions, which can later be utilised by operators to extend services.

Ogun highlighted the NCC’s first major infrastructure project under the USPF: the Emergency Response System, which led to the construction of emergency communications centres nationwide. Despite contracts worth millions of dollars and annual fiscal appropriations, the project yielded little result. He concluded by stating that the NCC’s failure to utilise the USPF to achieve the widespread availability and usage of network services, as mandated by Section 112 of the Nigerian Communications Act, represents a significant disservice to the nation.

Ifunanya

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