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NIGERIA
A new business climate |
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 nigeriaN COMMUNICATIONS COMMISSION (NCC)
Doing telecoms business in nigeria
Manager:
Director General & Chief Executive
Engr. Dr. Nnama
Contact:
Plot 19, Aguata Close – Near CBN Quarters, Garki II
PMB 326, FCT, Abuja
nigeria
Telephone + 234 9 234.4590
Facsimile +234 9 234.4593
E-mail : ncc@cyberspace.net.ng
Head Public Affairs : Dave Imoko
Telephone + 234 9 234.4589-92
E-mail : hpa.ncd@micro.com.ng
For more information,
please visit our Website at http://www.ncc.gov.ng
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INTERVIEW WITH
ENGR.
(DR) EMMA NNAMA,
CEO nigeriaN COMMUNICATIONS COMMISSION
August 5th, 1999
Forbes: Please could you give our viewers the historic background of NCC.
Engr. Dr. Nnama: The nigerian Communications Commission was established by Decree 75 of 1992. I will like to give a background to that because I was involved in the discussions that preceded its formation. In 1987 the Ministry of Communications, under the able leadership of the then Minister, Major General Tanko Ayuba and his Permanent Secretary Engr. Olawale Ige, organised an international seminar aimed at formulating a telecommunications policy. Many telecommunications experts within nigeria participated in this seminar. People like Engr.Victor Haffner who, at one time, in the 70s, was chairman of the Administrative Council of the International Telecommunications Union, Prof. Bajoga, who is today CEO of Nitel ; and Engr. Vincent Maduka, a former Director General of the nigerian Television Authority. I was then the Head of Communications at the nigerian Ports Authority . The then Secretary General of the ITU, Mr Butler, was also actively involved in this seminar.
Among the recommendations of this seminar was the creation of two bodies that would be independent of the then Ministry of Communications unit that was handling radio frequency matters.
One of these bodies, the NCC, was to deal with telecommunications generally, while the other, the National Broadcasting Commission, would focus on broadcasting. With the enactment of the decree, the NCC was mandated to regulate telecommunications practice in nigeria, in concert with the Ministry of Communications. The Ministry represents nigeria on all matters relating to the ITU, the specialised agency, of the United Nations charged with regulating telecommunications on a worldwide basis.
Forbes: The role of NCC still needs to be elaborated as far as the development of the industry is concerned. Could you clarify the exact role of NCC.
Engr. Dr. Nnama: As I said earlier, our role is to regulate all aspects of telecommunications practice in nigeria, with the exception of broadcasting. The NCC regulates the use of that path of the usable electro-magnetic frequency spectrum available to nigeria. In regulating, that is in ensuring the orderly use of this path of usable electro-magnetic frequency spectrum available to nigeria, NCC's activities impact on the operations of all private telecommunications operators using the frequency. Nitel is a major user and, in recent times many private operators have been granted licences for one thing or the other. In nigeria today, there is online banking because many organizations have been licensed to use VSAT systems to carry official and operational traffic for banks. Indeed, a company called Schlumberger has as many as 65 VSAT systems mainly serving the banking sector. Nitel is a major user. This is why Nitel comes to the fore. Most frequencies allocated to nigeria for fixed services and fixed satellite operations are being used by Nitel, which is the only carrier. That is why they are big. We regulate them in concert with the Ministry of Communications, which has a unit called Technical Services Division, that assigns frequencies. So, although we regulate Nitel, we do not control Nitel. That is a different thing. We cannot stay here and order their operational activities but in terms of regulating them we do so. There is an offshoot of Nitel called M-TEL, handling the cellular phone system in nigeria. They have paid their licence fees, and obey the rules we set for such organizations.
Forbes: As far as the telecommunications policy is concerned, again analysts tend to think that the current policy needs to be updated, since it dates back to 1995. What aspect of the law should be changed or modified?
Engr. Dr. Nnama: In June this year, President Obasanjo established a panel to review the telecommunications policy. He chaired the first meeting and subsequently handed over the panel to his deputy, Vice President Atiku Abubakar , while giving the panel one month to conclude all deliberations and submit its reports. Membership of this panel was drawn from the Ministry of Communications, NCC, Nitel, M-tel, as well as some other senior government officials whose designations escape my memory presently.
The Ministry of Communications organised a two-day International Seminar (July 21 and July 22, 1999) at the ECOWAS Secretariat, Abuja, nigeria, during which course, key players, operators and representatives of major companies from within and without nigeria, generated germane ideas which have since been coalesced into a document presently engaging the attention of the President.
Consequently, there will be a new policy coming out soon. When, I don’t know. But I think the President is keen on moving forward, so a new policy is coming out. We have been receiving enquiries from people who want to invest in our telecommunications sector. Recently, a former American Ambassador to this country, Mr. Lennon Walker, now retired and operating as a consultant, came here to find out the prospects on behalf of his clients. Whether or not there would be a new legal framework, a new set of rules for people to come, I would say yes, that will be soon. I think it will soon be opened up. Thanks to the vision of the President.
Forbes: Both domestic and international investors are eager to know how the government will involve the private sector in not only resuscitating but modernizing and rehabilitating the communications infrastructure, would you give us some details about that?
Engr. Dr. Nnama: I have answered part of that question but I have to be specific this time. Since you came into the country you may have noticed that almost any news paper you pick, within the centerspread, is talking about infotech, about telecommunications. Some of the publications are speculative while others are factual, but that shows you how everybody is interested in telecommunications, both public and private. I think it is in two parts. There is what is called privatization. Government has made public statements about its determination, its irrevocable determination to privatize Nitel, which is the only carrier we have, and also M-Tel, the junior associated company, handling the cellular telephone system. The Government is irrevocably committed to privatizing these companies. The details will be made known. Both nigerians and foreigners will be involved. The Government has also shown irrevocable and urgent commitment to having more carriers. The number will be known when the new policy is out. We here do not know how soon, but I know that work has reached advanced stage in articulating a position that government will consider.
Government has also shown an irrevocable commitment to having another company to do cellular phones. It may be national, it may be regional, depending on the interplay of frequency and space. We know in our practice that I can give you some frequencies to use down in the southeast and give the same to some one else in the northeast. Engineers will sit together and see how these things should be done to accommodate people and ensure, as I said earlier, the optimal and orderly use of that national limited resource. We have the frequency band for such a service to encourage as many operators who are viable to come in. Again whoever comes in will still have to interconnect with what exists. The new carriers interact amongst themselves and Nitel in such a way that we have a new order aimed at opening up the rural areas so that there will be an increase in trade and commerce throughout the country. So government is already involving private people. The new mandate area is to encourage private participation in telecommunications practice. This is being done and many licences have been issued, I think about 522 licences and permits. But the permits are now being rationalized to encourage the very serious ones. The natural law of survival of the fittest will allow those who are weak to die naturally. Of course a firm legal framework will be put in place to allow investors to have peace of mind that they are doing business that will last in a democratic setting. The man who invests would like to take his money back. The law is already there making it easy for you to take your money back in keeping with laws of the country in that regard. That is why I said that everything is set, thanks to the vision of the President.
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Forbes: That will mean that improved telecommunications will also be slowed down.
Engr. Dr. Nnama: The question is hypothetical, because the man to decide at which speed Nitel will be privatized is the President . He has not told us how soon, but the barometer is there for every-body to read. If you look at the dailies and read what people are saying, you may easily form an opinion. On going around, I mean talking to nigerians at large, you will find out what they want to do. I am here, as a chief regulator, that is the Commission, and a member of a panel set up by the President to help formulate regulations. We have almost finished making our recommendations. It is up to the Presidency to say we want it this way or we want it that way. If Nitel is privatized slowly, development will be slow as regards the disposal of its shares but if new operators are introduced, new carriers as government has said, they will move at the pace government wants and we here will be doing some balancing. So the scenario I see now is that prospective investors should come quickly to establish a new carrier. So on balance, I think we are moving forward quickly.
Forbes: What is NCC’s role in lobbying strategic partnerships with international carriers for example?
Engr. Dr. Nnama: It is outside our mandate area to be matchmakers because we are supposed to be umpires. But if you come to me and say you have money but you don’t have a license and some one else has got the license and it is genuine, nothing stops us talking and saying "meet the nigerian company, Go ahead!" because I think the Legal Adviser could say this. Part of the stipulation is that it has to be a nigerian listed company that will ask for the license. So it is a total company, so we should be able to say if you go this way, go left, you can find somebody who is sincere as yourself, even though it is not our core business area. I think it is only that being at the international/national interface we should be able to tell you who has a genuine license then you go on. Whatever is between you is your private business.
Forbes: As the most asked question, how do you see the future of your industry?
Engr. Dr. Nnama : Panamsat was here, in this place, followed by Omnes. Panamsat in fact told us that they were very happy to be here. They don’t obey national frontiers, so somewhere there must have been some stray signal. They picked it up, analyzed it, and found it was true. It was coming in from nigeria. Something new was happening with the new President. So they flew down to find out, like Mr. Lennon Walker did. It is a new level playing field where people can come and invest. The Vice Chairman of Panamsat told us they have a satellite dedicated to Africa which makes it very lucrative and efficient for people to rent transponders on our area of the Atlantic and Africa. Minaj, one of our indigenous television broadcasting stations is using their transponder.
Suddenly, after Panamsat, there was Omnes, Schlumberger with French connections and its 65 VSAT outstations in nigeria. They also came to confirm that there is a new level playing field and we told them yes, there is. So many have been coming and going. MTS came. There is one called Telecel, whose world Vice President was here. He came with friends, some even came with private jets: "We want to know, is it true we can come and invest?" "Can you assure us that our system will work without harmful interference?" "Can we recoup our money?" We said
"yes! but wait for the whistle from the Presidency. The future is rosy."
Forbes: So there is some confidence?
Engr. Dr. Nnama : Certainly. I think there may be some Bill Gates springing up soon because everybody is talking about Internet. We here have been supported by the UNDP. We were given some two million dollars to arouse awareness. We had an international workshop - Afrinet ’99, and we are now going quietly to the universities to sensitize people, to promote Internet in nigeria, to arouse awareness. It’s part of our mandate area to make people aware. You may be surprised to know that in every nook and corner, people are acquiring Internet. The universities, private homes, students even spend their school fees to acquire PC’s and printers and all. So there is a tremendous awareness. You may not easily observe this trend because, out here information processing is still in its infancy. We don’t have data banks like you have but then you go to Internet you will find awareness. So, yes the future is very rosy. Every little corner wants an Internet node. So we are not even talking about the future. We are talking of the information age that has started in nigeria. The awareness is there, so we should be part of it, particularly the man on the wheel, on the control, I mean the President. He knows it all and we are glad to be part of the team.
Forbes: Our very last question is very personal opinion, what will be your last message to our 4.6 million readers?
Engr. Dr. Nnama The message is two-fold. One, please tell them that on this side of the globe there are nigerians, millions of nigerians, at the last count we were well over 100 million, educated much like their brothers and sisters anywhere in the world, be that in Papua New Guinea or Honolulu, Denver in Colorado or Oklahoma, Vancouver, or anywhere very much like them. We are very eager to be part of this global village where everything happens at once. If they find a nigerian asking any question, they should please respond positively because our nigerian fellows are as educated as any one of them anywhere in the world. That is one. Two, we have tasted the good fruits of modernization in every field of human endeavor. Be it in the university, in the academic exchange of knowledge, medical, radioastronomy, engineering…, You can always download instantly anything you want as far as you go to the right website. The impulse to emulate, to be part of the world is correspondingly sharpened and we have a President who, by virtue of his training as a military man, an engineer, a statesman, and many other aspects of human endeavor, understands that the first thing to do is plug us on to the information technology age, plug us on to the world at large, through the internet so that we can instantly, at a touch of a button, be part of humanity. Tell them that we are there and that most importantly in what I call telecomm olympics, that the host cargo-would be matched. That any player can go instantly to his own event with qualified referees, that we have our own qualified referee by world standards in this country. I can tell you that there are over 1000 people who are seasoned and recognized by the International Telecommunications Union: they are consultants, recognised around the world. I remember a friend, Niyi Raji, one of the pioneers of what is our former Telecommunications network- Net. He is a consultant to British Telecomms. There are so many like that even in the academia. They are there. I know Professor Ajayi, an adviser on nigerian aviation at many conferences. He is probably in Italy advising the Italian government presently. We can also exchange ideas. I remember, during our workshop, the World Bank flew in two experts to join us under 24 hours notice, and one of the gentlemen who came, formulated the telecomm policy of Ireland, which is now being implemented, and he gave us copies. They are hotcakes. The thing wasn’t up to a month old and we have digested it and taken what is right so that with this kind of cross fertilization of ideas made possible by radio electricity linked with computer, we are part of the human race solidly there at the frontiers of learning.
But the other thing is that they should help us to talk to players in the industry, both in their home countries, and in our country, that technology itself has something that we cannot checkmate. I have something in mind like the call-back system. People exploit the differentials in currency exchange rates between countries to make money. Instead of making straight call to the U.S, some subscribers call computers in U.S. It gives them the tone recognizing their numbers because calling from U.S is cheaper than calling from here. That has been a problem for many countries and the ITU cannot help without throwing the problem back to the country. That is one. People with Internet terminals and computer terminals establish international calls on voice as if it is just a local call. They pay nothing. That is another thing. So there are areas you cannot check. But with patriotism, country to country and international relations based on some kind of clean or civilized respect for other countries' laws, the losses to countries, both in security and commerce, could be minimised. From commerce point of view, it can be minimised. I think that is the message I want to give. Thank you.
Forbes: Thank you very much. |
© World INvestment NEws, 1999.
This is the electronic edition of the special country report on nigeria published in FORBES Magazine,
October 18 th issue.
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nigeria
