The Nigerian Communications Commission (NCC) is advocating further application of the Public Private Partnership (PPP) initiative in areas that can boost the nation’s economy by creating robust digital infrastructure, investment and policy.
Delivering a Keynote during a panel session at the 2021 Virtual Conference And Exhibition on Information Communication Technology & Telecommunications (ICTEL) organised by the Lagos Chamber Of Commerce And Industry (LCCI), the Executive Vice Chairman/CEO of the NCC, Prof. Umar Garba Danbatta, noted that the concept of Public Private Partnership has become one of the commonly used model of collaboration among stakeholders to fast track socioeconomic development whether at the global, regional and national levels.
Speaking on the Conference sub-theme, “Exploring Public Private Collaboration for a Robust Digital Infrastructure, Regulations, Investment and Policy”, Danbatta said the panel discussion is central on examining how Public Private Collaboration (PPC), which is generally, so often referred to as Public Private Partnership (PPP), can be leveraged to develop resilient infrastructure that will advance the country’s digital ecosystem. “Additionally, we are to reflect on how we can effectively implement regulations and policies as well as create an enduring collaboration between the private and public sector for the development of our digital ecosystem.
It is on record that this kind of partnership is helping to fast track the realization of Sustainable Development Goals, SDG9 with derivable quantifiable benefits to industry, including small and medium-sized enterprises in emerging economies.”
In Nigeria, the NCC is particularly noted for its faith in strategic collaboration and partnership as a central principle of its stakeholders’ relationship management and regulatory activities. The Commission’s daily regulatory processes are marked by consultations with a wide spectra of stakeholders as well as strategic partnering and collaboration with both private sector players and other sister public sector organisations.
Citing an African Development Bank (AfDB) White Paper on PPP Framework released in September 2020, Danbatta said it was emphatic that the infrastructure gap in African countries acts as an impediment to their economic growth and development. According to the White Paper, the gaps impact not only the economic situation of the citizens of Africa, but also the countries’ global competitiveness. The paper also estimates that poor infrastructure shaves off 2% of the per capita Gross Domestic Product (GDP) growth rates.
“Suffice it to say that, the role of public-private partnership in infrastructure development in Nigeria cannot be over emphasised because an adequate, robust and functioning infrastructure is the bedrock of communal and societal development. Therefore, to meet future challenges, our industries and infrastructure must be upgraded by evolving an enduring PPP model that services all the sectors of the economy.” He observed that the high level of infrastructure deficit and its attendant effect on socio-economic development in Nigeria explains government’s concern and search for an alternative means of providing infrastructure for the Nigeria’s teeming population.
“Thus, in 2005, the Federal Government established the Infrastructure Concession Regulatory Commission (ICRC) with a clear objective to accelerate investment in national infrastructure through private sector funding; and to assist the Federal Government of Nigeria and its Ministries, Departments, and Agencies (MDAs) to establish and implement effective Public Private Partnerships (PPP) processes. It is gratifying that state governments have also adopted variants of PPP models in order to tackle the challenge of infrastructure in their respective jurisdictions.”
Making a case for PPP in the ICT sector, Danbatta said: “if the telecom and ICT sector is the real ‘Infrastructure of infrastructure’ as it is often referred to because of its impact, efficiency and effectiveness on the growth of other sectors, it stands to reason, that the telecom sector is the most important sphere PPP should be adopted.”
He noted that following the liberalisation of the telecoms sector in 2001, the regulatory Commission has continue to facilitate investment inflow into the country’s digital space through licensing of many private sector players, who are deploying services in different segment of the nation’s telecom market. This, he observed, has resulted in rollout of massive infrastructure ranging from the deployment of Base Transceiver Stations (BTS) and laying of thousands of kilometres of fibre optic cables to every nooks and crannies of the country. Hence, the sector has grown significantly in investment with significant access to an array of voice, data and other kind of enterprises.
He spoke of the licensing of Infrastructure Companies (InfraCos), saying that the Commission has also continued to enhance existing infrastructure through the licensing of a category of private sector players known as InfraCo, who are to deploy fibre optic cable on a wholesale basis across the country with broadband Point of Access (PoA) in each of the 774 Local Government Areas of the country. This InfraCo scheme is running on a PPP arrangement, where the government provides a counterpart fund as a subsidy to stimulate faster, a more robust and resilient broadband infrastructure rollout across the country.
The EVC also spoke of challenges in the sector, noting that while broadband penetration in Nigeria has reached 45% at the moment, from less than 6% in 2015, and by that fact stimulating digital activities in the country, there still exist access gaps which the Commission is making efforts to bridge. Danbatta however raised hope on the instruments put in place to advance the cause of development through PPP. “It is noteworthy that the hitherto existing access gaps of 217 identified in the country have been reduced to 114 through increased collaboration between the Commission and stakeholders in the telecom ecosystem. Hence, the InfraCo project being implemented by NCC and other similar regulatory initiatives which has PPP component are in line with policy expectations of the Nigerian National Broadband Plan (NNBP) 2020-2025; the National Digital Economy Policy and Strategy (NDEPS) 2020-2030; the NCC Strategic Management Plan (SMP) 2020-2024, as well as a number of regulatory instruments and frameworks which envisioned the PPP model as a central organising principle for fast-tracking the development of Nigeria’s telecoms industry.”
He further asserted: “In a concrete expression of belief in the centrality of PPP principles, the NCC, in November 2020, created a ‘PPP Unit’ as a division under its Special Duties Department.”
The Unit is overseeing the implementation of the NCC’s revenue assurance solutions (RAS) as well as the Device Management System (DMS) project. The two projects are being implemented in collaboration with private sector players. He explained that while the RAS is intended to address the revenue leakages accruable to the government, through the NCC; while the DMS is intended to address the issue of type approval of telecom equipment and devices to ensure originality and standardisation because of the implication of substandard devices for health and quality of service. “The DMS is also instituted to tackle the problem of SIM boxing and call masking, which not only constitutes threat to national security but also a mark of anti-competitive practice in the telecoms sector and a basis for loss of revenue in tax remittances to the government.”
He also highlighted the challenges facing the sector with PPP: “However, despite the various PPP interventions being undertaken by the government and similar initiatives at the Commission, a number of challenges persist in the telecom ecosystem. These include multiple taxation and regulation, Right of Way (RoW) issue, vandalism, poor electricity supply, and lately worsening insecurity. All of these factors affect both the tempo and quality of infrastructure rollout by the private sector licensees, who are the main engine of growth in the telecom sector,” noting that these challenges also affect the quality of telecom services and by extension the Quality of Experience (QoE) of telecom consumers.
Danbatta assured that the Commission is committed to continuously engaging relevant stakeholders, both in the public and private sectors, in the country and beyond, in order to ensure that appropriate infrastructure befitting a modern digital economic system is available in the country to deepen government’s determination and commitment to total digital transformation of services in the country.
