Nigerian government projected to earn N500 billion from 5G spectrum

Nigerian government expected to earn N500 billion from the 5G spectrum
The NCC based this prediction on past earnings
NCC plans to increase internet penetration from 44% to 75% by 2025

According to the National Communication Commission, the Federal Government of Nigeria is expected to generate over N500 billion ($1.158 billion) in 2023, through the 5G spectrum.

An interactive meeting was organized by the Senate Committee on Finance and held on 2023-2025 MTEF-FSP, and. There, the Executive Vice Chairman of the NCC, Prof. Umar Danbatta, relayed the projected figures above.

The Executive Vice chairman revealed that the estimated revenue would be realized from the auctioning of two 5G spectrums and also made known the bidding process for auctioning of the spectrums in 2023.

Speaking more on the subject, he disclosed that the NCC’s projections were a result of the data from the recent revenue the NCC has acquired. He disclosed that NCC had generated N257 billion in the first quarter of 2022, while N195bn was remitted to government coffers.

Prof. Umar Danbatta, also added that from April to August, N318bn was generated while N214 was remitted. He noted that the secured fund was brought about by the auctioning of two 5G spectrums at the rates of N263m and N273m dollars.

“The NCC from 2017 to 2021 had also generated N799bn and remitted N423bn to the government. The target was to hit 75% penetration in 2025. Hopefully, we will achieve 50% penetration by end of 2022,” The Executive Vice Chairman said.

Prof. Umar Danbatta said that provisions have been made for reporting emergencies. To this effect, he encouraged Nigerians to make use of the 112 emergency national number to report issues of emergency such as fire outbreaks and accidents, among others, and another toll-free number, 622, to lodge complaints on issues relating to drop calls.

From 2017 to 2021, NCC also generated N799 billion and remitted 423 billion to the government. The NCC had earlier planned to generate N500 billion with the auctioning of two 5G spectrums. This goal has been actualised.

The Chairman of the Committee, Senator Solomon Adeola noted prior to the N500 revenue that the expected NCC revenue in 2023 would help reduce the deficit proposed in the 2023 budget (NAN).

The NCC plans to increase internet penetration in Nigeria from 44% to 75% by the year 2025, hitting milestones as this is a step in the right direction.