Echoes of Danbatta’s Five Years of Regulatory Exploits

By Gwen C. Onyebuchi

Prof. Umar Garba Danbatta was recently reappointed for another five years in office by President Muhammadu Buhari, following the expiration of his first term in August 2015, as the Executive Vice Chairman of the Nigerian Communications Commission (NCC).

The renewal, on the recommendations of the Minister of Communications and Digital Economy, Dr Isa Ibrahim Pantami, is hailed as a tactical move to strengthen the tremendous gains already recorded in the industry.

It is meant to guarantee stability in the industry, as the expectation is that another five years for Danbatta to pilot the affairs of the industry will culminate in higher growth of the sector, especially at this period of increase in the digital economy reliance.

On assumption of office, five years ago, the former university lecturer came with the promise to effectively confront many challenges bedevilling the industry with a visible contribution to actively facilitate the development of a knowledge-driven, inclusive, globally competitive and prosperous Nigeria through telecommunications.

Focal issues on his 8-Point agenda include: facilitating broadband penetration, improving quality service, optimizing usage and benefits of the spectrum, promoting ICT innovation and investment opportunities, facilitating strategic collaboration and partnership, protecting and empowering consumers, promoting fair competition and inclusive growth as well as ensuring regulatory excellence and operational efficiency. Diligent implementation of the 8-Point agenda has brought about a lot of positive dividends to the Nigerian economy, some of which are examined.

Today, impressive growth statistics in the industry between 2015 till date are evidence of the successes recorded under Danbatta as the EVC of NCC from August 2015 to date. They formed the basis of his reappointment. For instance, despite the recession, coronavirus pandemic and other macro-economic challenges, the telecoms segment’s Gross Domestic Product (GDP)’s contribution alone increased from 8.50 per cent in August 2015 to 14.30 per cent at the end of the second quarter of 2020, according to data released by the National Bureau of Statistics (NBS). Significantly also, telecoms investment grew from around $38 billion in 2015 to over $70 billion currently.

Active mobile voice subscribers increased from 151 million in August 2015, when Danbatta came on board, to 205.3 million at the end of September 2020. Between August 2015 and February 2019, when teledensity was measured against the 140 population in Nigeria, teledensity increased from 107.87 to 124.05 per cent. However, after rebasing the country’s teledensity to 91 per cent in February 2019, in line with international best practice and demo-economic reality, teledensity has impressively increased from 91 per cent to 107.53 per cent as of September 2020.

Similarly, Internet subscribers increased from 90 million in 2015 to 143.7 million as of September 2020 while broadband penetration increased from 6 per cent in 2015 to 45.43 per cent in September 2020. This indicates that 86,714,978 Nigerians are now on broadband networks of 3G and 4G in the country.

Also, the number of subscribers that have subscribed to the Mobile Number Portability (MNP) service increased from 385, 617 in August 2015 to over 1,092,781 as of May 2020. This is due to increased public education and awareness by the Commission’s head office and its zonal offices, as they intensified awareness on the availability and usage of MNP across geo-political zones. The total number of telecoms subscribers that have subscribed either partially or fully to the Do-Not-Disturb (DND) service introduced by NCC has increased from zero to close to over 25 million to date.

Following the painstaking implementation of the 8-Point Agenda, the country as able to achieve and surpass its broadband penetration target of 30 per cent by the end of December 2018, a feat that was commended by all stakeholders in the country, appreciating the Commission for occupying the driver’s seat in driving the broadband process.

Various efforts of the Commission in licensing new spectrum bands, re-farming certain frequency bands and driving initiatives for increased broadband infrastructure in the country have been responsible for these feats.

With the increase in broadband penetration being recorded every month, stakeholders have said that the NCC is well-positioned and must be supported by the government through relevant policies to drive the actualisation of the country’s digital economy policy strategy, going forward.

This has become necessary since, as usual, the Commission is expected to take the driver’s seat in the actualisation of the new broadband target being developed by the Ministry of Communication and Digital Economy. In November 2019, the new National Broadband Plan for 2020-2025 was unveiled by President Muhammadu Buhari. The new plan targets 70 per cent broadband penetration to cover 90 per cent of the population in the next five years.

The passion for an aggressive drive for pervasive broadband penetration by the Danbatta-led administration at NCC is manifestly going by the fact that the need to facilitate broadband penetration tops the 8-Point Agenda.

To demonstrate his tenacity to deepening broadband penetration across the nooks and crannies of the country, Danbatta has made it clear that, henceforth, “broadband access will become a fundamental metrics for measuring development growth in Nigeria, as it will be central to the growth recorded in every other sector of the economy where telecoms would be driving services automation and digitization.”

According to Danbatta in one of his numerous speeches, “Nigerians need a robust and pervasive broadband connectivity more than ever before in today’s world, where people can easily interact with an Automated Teller Machine (ATM), carry out activities around e-commerce, e-government, telemedicine, among others daily.”

Nigeria’s thirst for data has grown significantly, largely due to the generational change of telecommunications from the use of voice-dominated technologies (1G and 2G) to today’s data dominated technologies of 3G, 4G and even the much-talked-about 5G. Without a doubt, more virtualised engagements are happening online and will continue to be as it does appear the citizens have an insatiable need for data.

Closely linked to the effort of Danbatta-led NCC towards deepening broadband penetration is the Commission’s licensing of infrastructure companies (InfraCos) to extend broadband services to every nooks and cranny of the 774 local government councils in the country.

In its modest quest to bridge the digital divide, the Commission put in place this initiative to fast-track broadband access and take services to several unserved and underserved areas of Nigeria with the implementation of its Open Access Model, through the InfraCo licensing.

More remarkably pertinent to the digital transformation march is the fact that in 2018, the Commission was able to increase the number of InfraCo licensees from two to six.

The six InfraCos, so far licensed to drive the deployment of broadband infrastructure across the nation’s six geo-political zones and Lagos, include Raeana Nigeria Limited for the South-South Zone; O’dua Infraco Resources Limited for South-West Zone; Fleek Networks Limited for North-West Zone; Brinks Integrated Solutions for North-East Zone; MainOne Limited for Lagos Zone and Zinox Technologies Limited for the South-East Zone. The remaining license for North Central Zone is being processed, according to the Commission.

Currently, the Commission (NCC) has constituted a committee to review the framework for the licensing of Infrastructure Companies (InfraCo) and recommend sustainable funding options for the effective implementation of the proposed national fibre project.

The constitution of the committee was a sequel to the requirements of the new Nigerian National Broadband Plan (NNBP 2020-2025) and reports of relevant committees set up by the Federal Executive Council (FEC), which include the Inter-Ministerial Review Committee on Multiple Taxation on Telecommunications Operators over Right-of-Way (RoW) and the Technical Sub-Committee on Right-of-Way for Deepening Broadband Penetration in Nigeria.

These requirements and reports related to the imperative of reviewing the InfraCo framework to cater for the delays in take-off, change in the exchange rate, supply chain and other challenges imposed by the COVID-19 pandemic.

So far, the Committee set up by the Commission has met with all the six licensed InfraCos as well as the preferred bidder for the North Central zone. The Committee is also looking at the challenges facing the InfraCo project, the need for accelerated deployment of fibre infrastructure, means of mitigating the exorbitant RoW charges, among others. The Commission is also working actively with the Broadband Implementation Steering Committee (BISC), as constituted by the Hon. Minister of Communications and Digital Economy based on the recommendations and requirements of the NNBP 2020-2025.

Providing updates on the status of the InfraCo project in his office in Abuja recently, Danbatta, said: “The InfraCo project is dear to the government because of its ability to enhance robust and pervasive broadband infrastructure to drive service availability, accessibility and affordability.”

According to him, “We are keen on ensuring the project delivers maximum benefits for the economy at large and that is why the ongoing review is very critical to the overall success of the project in line with the new realities of the time.” The EVC clarified that the current status of the InfraCo project, as provided above, is contrary to reports suggesting that the Commission is inching towards executing the counterpart funding in respect of the project.

Taking consumer protection more seriously has become the hallmark of Danbatta leadership in the last five years. From the 2017 Year of the Consumer initiative to curbing cases of unsolicited text messages, curbing cases of call masking, putting in place the 622 toll-free number to resolve consumer complaints, introducing regulations on spectrum trading, national roaming, guidelines on e-waste, regulation on the commercial satellite operations in Nigeria, accelerated implementation of Emergency Communications Centre (ECCs) across the states of the Federation and Federal Capital Territory (FCT), Abuja, among others.

Under Danbatta’s foresight and leadership, was the first telecoms regulator to embark on a trial of 5G in West Africa. Nigeria undertook 5G trials in selected locations within the country in collaboration with an Operator in 2019. The trial, among others, was to study and observe any health or security challenges the 5G network might present.

Following that, the Commission has initiated an ongoing engagement with the academia while at the same time funding 5G related research projects, all in a bid to ensure the nation is provided with the best in terms of research findings and policy input, to drive the implementation and deployment of 5G technology in Nigeria. These engagements are targeted at enabling the development of robust policies, which will put Nigeria in the best place to contribute maximally to the digital economy drive of the nation.

Consequently, the Danbatta-led NCC, in August 2020, published the Draft Consultation Document on the Deployment of Fifth Generation (5G) Mobile Technology in Nigeria and wishes to draw the attention of the general public to the fact that the Commission has not concluded plans for the deployment of Fifth Generation (5G) network. The Draft Consultation Document for the deployment of the 5G in Nigeria has been produced and uploaded on the Commission’s official website (www.ncc.gov.ng).

This document defines the implementation plan for the deployment of 5G in Nigeria. It provides a background into the benefits of 5G technology and outlines the Commission’s plans and strategies for a successful implementation of 5G in Nigeria. It also presents guidelines for the relevant areas of the technology and the expectations of the Commission from the operators. This Plan takes into account the expectations of all the stakeholders in the communications industry in Nigeria.

According to Danbatta, the specific targets of these engagements include the development of policies that have the potential of accelerating the deployment of 5G networks in Nigeria, maximizing the productivity and efficiency benefits of 5G to the nation, creating new opportunities for Nigerian businesses at home and abroad and encouraging in-country investment and ensuring the operations of 5G networks conform with international standards.

One important area where Danbatta has also displayed outstanding leadership is in resolving major disputes. In 2016, Danbatta’s intervention led to the reduction of the Ground Fee Rate imposed on IHS by the Ogun State government from N370 million down to N120 million, leading to the unsealing of 47 Base Transceiver Stations (BTS). In 2017, NCC’s intervention led to the waiver of the N221 million RoW fee for MTN in Kano. Also, in 2018, Danbatta’s intervention in Kogi helped in the unsealing of 20 BTS hub sites.

Asides from several other interventions since 2015, the Commission, in 2019, embarked on such projects as Wireless Internet Cloud, Laptop Project, Computer Based Test (CBT) Centres project and ICT Park project. The Wireless Cloud Project is an initiative to provide a platform for supporting campus-wide wireless access to internet service for teaching, learning, research and development to faculty staff and students of the nation’s colleges of education, polytechnics and universities and hospitals through the provision of the necessary infrastructure, including masts, antennas, networking and twelve (12) months bandwidth supply and maintenance support. During the period under review, the Commission successfully implemented the Wireless Internet Cloud in 150 beneficiary institutions at various locations in the country.

The Laptop Project, for instance, is an initiative to supply, brand, configure and integrate into the cloud laptop computers with e-learning suites in higher institutions across the country. During the period under review, the Commission successfully implemented the supply of laptops in 230 beneficiary institutions at various locations in the country.

In line with our strategic Collaboration & Partnerships drive, the Commission is currently implementing the CBT project in Six (6) locations across the Country which includes: FCT, Katsina, Abia, Ondo, Gombe and the Anambra States. This is a special intervention Programme by the Commission aimed at establishing state-of-the-art facilities where online examinations can be conducted to entrench efficiency, effectiveness and curb examination malpractices. It is implemented in the 6 Geopolitical Zones in conjunction with the Joint Admission and Matriculation Board (JAMB).

The ICT Park is an initiative to establish a fully functional Digital Industrial Complex (DIC) to drive ICT Development and support Technology Start-Ups in beneficiary States and their environs. The Commission is currently building ICT Parks in Four (4) locations across the Country, namely Kano, Borno, Ogun and the Enugu States.

Apart from the telecom sector’s impressive contribution to the country’s GDP, the effective, firm, transparent regulatory approach of the Nigerian Communications Commission (NCC), the regulator of the sector, is resulting in a greater contribution to the revenue drive of the Federal Government, with N362.344 billion in spectrum sales and surplus budgets remitted to the Federal Government’s Consolidated Revenue Fund (CRF) in the last five years.

Although NCC is categorised as a self-funding organization (SFO) of the Federal Government, not primarily as a revenue-generating agency, its efforts in boosting FG’s revenue through annual remittances through spectrum sales and surplus budgets have been described as commendable by industry stakeholders.

Amplifying this in an interview at a recent programme in Abuja, the EVC of NCC, Prof. Umar Danbatta, “Although, NCC’s primary role is not to generate revenue for the government, to nurture and regulate the industry, figures obtained from the commission show impressive remittance of funds to the coffers of the consolidated revenue of the Federal Government, especially in the last five years.”

The remittances are paid to CRF annually after the preparation of audited accounts. This is following the Fiscal Responsibility Act of 2007. However, NCC had taken initiative to make payments on accounts as revenue is generated.

Another milestone of Danbatta worthy of attention, within the last five years, lies in his successful completion and the inauguration of the NCC’s five-storey building now named the Communications and Digital Economy Complex located at 1253 Cadastral Zone, Mbora District, Abuja. The project had been abandoned for a long period for lack of funds to complete the massive structure. The building is now being put to effective use to drive regulator excellence.

It is soothing to say that since becoming the EVC/CEO of the Commission on August 4, 2015, Professor Danbata, who is at the helms of affairs of the nation’s telecommunications regulatory agency, despite daunting challenges in the industry, has brought forth his sound experience in piloting the affairs of the industry with such finesse, ingenuity, regulatory excellence and passion.

No wonder his leadership excellence attained him the winner of the 2019 Zik Prize, in the professional leadership category. Prof. Pat Utomi, a member of the Advisory Board of the prestigious award described Prof. Danbatta as “a square page in a square hole. An academic professor, Danbatta has, through the NCC, led the charge to drive Nigeria’s industrial revolution and knowledge-based economy leveraging telecommunications.” Utomi acknowledged that Danbatta’s leadership has enhanced transparency and innovation in the sector, such that recently, NCC was acknowledged by the International Telecommunication Union (ITU), as one of Africa’s foremost regulators.”

In a letter of nomination in July 2020, which was jointly signed by the Chairman of the Board, Senator Jubril Aminu, CON and Utomi, the NCC boss was described as “an outstanding public servant, whose initiatives and reforms had contributed to Information and Communications Technology (ICT) playing a leading role in the socio-economic development of Nigeria.”

Zik Prize was set up in 1994 in honour of the first President of Nigeria, late Dr Nnamdi Azikiwe, to encourage and nurture leadership in Africa and the diaspora.

Without mincing words, Danbatta, in the last five years, has remarkably consolidated on the growth recorded by his predecessors through effective development and driving of initiatives needed to leapfrog the nation into a fully digital economy and there are high expectations that he is committed to doing more with his formidable team of experts at NCC in the coming years. Already, he has his regulator eyes on attaining the 70 per cent broadband penetration for the country to reach 90 per cent of the population by 2025.