The Nigerian Communications Commission (NCC) generated a total revenue of N195.8 billion in 2024, out of which N111 billion was remitted to the Consolidated Revenue Fund (CRF), the agency’s Executive Vice Chairman and Chief Executive Officer, Aminu Maida, has disclosed.
Maida made this known on Thursday while defending the NCC’s 2025 budget proposal before the joint National Assembly Committee on Communications.
The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, revealed that the Commission generated N137.6 billion from annual operating fees and N26.4 billion from spectrum fees, among other undisclosed revenue sources.
Maida disclosed that while the NCC had projected to earn N292.3 billion in the fiscal year, it fell short of this target, primarily due to its inability to auction a slot of the 5G spectrum.
The EVC explained that the transfer to the Federal Government was impacted by the fact that a significant portion of spectrum fees is restricted to the Consolidated Revenue Fund (CRF).
He projected that the Commission will generate N272.433 billion in 2025 from levies, spectrum fees, and other revenue sources. Additionally, he outlined a proposed expenditure plan, including N95.668 billion for recurrent expenses, N10.735 billion for capital projects, and N30.13 billion allocated for special initiatives.
Yakubu Gontor, Director of Financial Services at the Nigerian Communications Commission (NCC), explained further why the Commission was unable to proceed with its planned spectrum auction, citing prevailing market conditions as a key factor.
According to Gontor, two major operators already hold 5G spectrum licenses but are currently underutilizing them. Meanwhile, the third-largest operator, which the Commission had anticipated would purchase the available spectrum, opted out, citing strategic business considerations.
“They made it clear to us that this may not be the right time for them to make such an investment. Instead, their focus is on expanding their existing market position,” Gontor stated.
“So we were operating on very fine margins. We had one slot to sell and only one potential buyer. As you know, 9Mobile is currently undergoing a restructuring of its fortunes,” he explained.
Despite a proposed 50% hike in telecom tariffs, Gontor expressed doubts that the NCC would generate significant additional revenue from spectrum sales.
“We have also made it clear to the telecom operators that our priority this year is to improve service quality. Spectrum is one of the essential resources needed for this, but unfortunately, when you examine their investment priorities, spectrum does not come first,” he noted.
The Director expressed optimism that with the introduction of new technologies, including 6G, the Federal Government could generate over $1 billion in revenue.
“When it comes to spectrum sales, it operates on a 10-year cycle for two key reasons. First, just like leasing a piece of land, there is initial excitement when the lease payment is received. However, for the next nine years, you will be relying on that upfront payment,” he explained.
Earlier, the Chairman of the Senate Committee, Shuaib Afolabi Salisu, assured the Commission of adequate budgetary provisions in the 2025 budget. He emphasized that the telecom sector remains a major contributor to Nigeria’s economy.
