NCC: Promote Indigenous Content to Curb Telecom Tariff Increase
TECH DIGEST- Amidst discussions about potential hikes in telecom tariffs, the Nigerian Communications Commission (NCC) is championing a different approach: fostering homegrown content to enhance telecom services and diminish dependency on imports. Prof Umar Danbatta, the Executive Vice Chairman of the NCC, stressed this imperative during the Nigerian Telecommunications Indigenous Content Expo (NTICE 2023), citing the stable nature of telecom tariffs in Nigeria despite rising costs and forex fluctuations.
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Danbatta acknowledged that the stability of tariffs could be sustained if the telecom industry embraced the creation of indigenous content, thus reducing reliance on imported components. He articulated, “Quality of Service and Experience have improved in Nigerian telecommunications, but the key to maintaining this without tariff hikes lies in nurturing local innovation.”
Asserting the NCC’s alignment with the Federal Government’s vision for a robust Nigerian economy, Danbatta highlighted the establishment of the Nigeria Office for Development of Indigenous Telecoms Sector (NODITS) in July 2021. NODITS, operating under the NCC’s aegis, is tasked with driving the National Policy for Promotion of Indigenous Content in the Nigerian Telecommunications Sector.
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NODITS is advancing across four pivotal realms: Manufacturing, Human Capacity, Research and Development (R&D), and Software and Services Development. The EVC emphasized, “NTICE stands as an embodiment of NCC’s accomplishments through NODITS, fostering not only strategic partnering but also emerging as the industry’s premier indigenous content event.”
Furthermore, NCC’s initiatives have culminated in fostering local manufacturing capabilities. An example is the Corrugated Optical Duct (COD), designed to shield fiber infrastructure from persistent damages, thus contributing to the overall robustness of the network.
Danbatta’s comprehensive address underscored the NCC’s commitment to fortifying the Micro, Small, and Medium Enterprises (MSMEs) landscape, nurturing young talents and innovations, and catalyzing investment. Additionally, NCC’s ban on importing whole-body SIM cards, introduced at the inaugural NTICE, has not only alleviated foreign exchange pressures but also fostered a local industry worth over N55 billion. The tangible outcome: job creation and economic growth.
In the midst of escalating costs, Nigerian telecom operators have been advocating for tariff increases. However, the regulatory stance of the NCC has thus far halted such increments, citing a lack of compelling justification. As discussions continue, the NCC’s proactive approach highlights the transformative potential of homegrown content in not only stabilizing tariffs but also nurturing innovation and bolstering the nation’s digital landscape.
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