By The Nigerian Communications Commission (NCC) has attributed its lower-than-expected revenue generation in 2024 to the failure of telecom operators to purchase 5G spectrum licenses.
NCC’s Director of Financial Services, Yakubu Gontor, and its Chief Executive Officer, Aminu Maida, made the disclosure on Thursday while defending the Commission’s 2025 budget before the National Assembly’s Joint Committee on Communications.
Gontor explained that market conditions hindered the planned auction of the 5G spectrum.
“Two major operators already hold 5G licenses, but they are underutilizing them. We had expected the third-largest operator to make a purchase, but they opted to focus on expanding their existing network instead,” he said.
He also noted that 9mobile, another potential buyer, is currently undergoing a financial restructuring, limiting competition for the available spectrum slot.
Despite a 50% hike in telecom tariffs, Gontor cautioned that revenue from spectrum sales may remain stagnant.
“Our priority for 2025 is to improve service quality. While spectrum is crucial, operators are currently prioritizing other investments over spectrum acquisition,” he added.
However, he expressed optimism that the introduction of next-generation technologies, including 6G, could generate over $1 billion in revenue for the government in the future.
NCC’s Financial Projections for 2025
The NCC has projected total revenue of N272.4 billion for 2025, with key revenue streams including:
N205.7 billion from operating levies
N49.8 billion from spectrum fees
Other income sources
The Commission’s total projected expenditure stands at N136.5 billion, including:
N95.7 billion for recurrent expenses
N10.7 billion for capital projects
N30.1 billion for special initiatives
The NCC also aims to remit N120.8 billion to the Consolidated Revenue Fund (CRF) and additional funds to the Universal Service Provision Fund.
2024 Revenue Shortfall
Providing an overview of the 2024 financial performance, CEO Aminu Maida revealed that the NCC generated N195.8 billion, falling short of its N292.3 billion target.
The breakdown includes:
N137.6 billion from operating fees
N26.4 billion from spectrum fees
Other revenue sources
Maida attributed the shortfall largely to the failed 5G auction, which affected government remittances.
“The inability to sell a spectrum slot significantly impacted our revenue and contributions to the CRF,” he stated.
He also highlighted that an anticipated 12.5% cost of collections from the federal government was not approved, further affecting revenue projections.
Legislative Scrutiny
Co-chair of the Committee, Senator Aliyu Ikrah Bilbis, said the NCC’s budget submission would enable lawmakers to scrutinize its operations and ensure improved performance in 2025.
