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The Nigerian Communications Commission (NCC) has underscored the importance of creating indigenous content to prevent potential increases in telecom tariffs. According to the Executive Vice Chairman of the Commission, Prof Umar Danbatta, encouraging the development of local content that adds value to telecom services can curb the need for imports and help maintain stable tariffs.
Speaking at the second edition of the Nigerian Telecommunications Indigenous Content Expo (NTICE 2023), Danbatta acknowledged the challenges of rising costs and forex fluctuations. Despite these challenges, he pointed out that telecom tariffs in Nigeria have remained steady.
However, Danbatta cautioned that tariff hikes could become unavoidable if the telecom industry continues to rely heavily on imported components for its services. He emphasized the necessity of embracing indigenous content and value creation within the telecom value chain to ensure sustainability.
Enhancing Quality of Service
Danbatta acknowledged the improvements in both the quality of service and experience within the Nigerian telecom sector over the years. He stressed the link between these improvements and the stable tariffs, highlighting the importance of supporting indigenous content to maintain these positive trends.
Danbatta reiterated the NCC’s commitment to aligning with the Federal Government’s efforts to foster economic sustainability through various policies. He mentioned the establishment of the Nigeria Office for Development of Indigenous Telecoms Sector (NODITS) under the Commission as a step toward promoting local content in the telecommunications sector.
NODITS and Its Achievements
Danbatta explained that NODITS focuses on four key areas: manufacturing, human capacity development, research and development (R&D), and software and services development for the telecom sector. He noted that the NTICE event is one of the accomplishments of NCC through NODITS, serving as a platform to promote indigenous content.
The Commission has also incentivized the manufacturing of Corrugated Optical Duct (COD) to protect fibre infrastructure. Additionally, NCC supports Micro, Small, and Medium Enterprises (MSMEs) and innovators through various means, including angel investments and exposure to investors.
Ban on SIM Card Imports
Danbatta highlighted the positive impact of policies such as the ban on importing whole-body SIM cards. The ban not only reduced foreign exchange demands but also stimulated a business worth over N55 billion for local SIM card manufacturers. This move has also generated direct and indirect employment opportunities.
Telecom operators in Nigeria have sought tariff increases due to escalating costs, but the NCC has thus far prevented such hikes, stating that the justification is not yet sufficient. The Commission’s call to promote indigenous content echoes its efforts to maintain affordable and stable telecom tariffs for Nigerian consumers.
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