The Nigerian Communications Commission (NCC) may review the Annual Operating Levy (AOL) obtainable in the telecom sector.

AOL is a regulatory fee that telecom licensees, particularly network operators, pay to the NCC. It is a percentage of the licensee’s net revenue, calculated after deductions for certain costs like roaming, interconnect, and bandwidth.

Checks showed that network operators pay 2.5 per cent of their net revenues as AOL, while non-network operators pay one per cent of their Gross Revenue.

Indeed, the NCC in a report of the Regulatory Impact Assessment (RIA) on Subsidiary Legislations, 2024, presented by the Legal and Regulatory Services Department, at a stakeholders’ forum, it was noted that since the review of the Regulations in 2022, the collection rate increased by 22.9 per cent while the AOL compliance rate reduced from 28 per cent (in 2022) to 26 per cent (in 2023).

The telecoms regulator, however, noted that 45 and 21 non-compliance enforcement actions were carried out in 2023 and 2022 respectively.

NCC in the document, however, submitted that “There is a need to expand the AOL collection bucket to ensure compliance by all license categories. A compliance roadmap needs to be developed.”

Earlier in his welcome address at the forum, the Executive Vice Chairman of the NCC, Dr Aminu Maida, said that the RIA process provided major stakeholders with an opportunity to offer feedback, as well as recommend areas for review and improvement that will enhance legislation.

“These enhancements will ensure the effective application and implementation of these Subsidiary Legislations,” he said, adding that the Commission remained committed to fostering a fair, transparent, and consumer-centric telecommunications landscape.

The NCC boss, who was represented by the Head of Legal and Regulatory Services, Chizua Whyte, said that the evaluation is important in determining the adaptability and agility of these legislations in reducing barriers to market entrance, entrenching fair competition in the market and facilitating effective and efficient utilisation of scarce resources.

Maida said the essence of the RIA is to provide the telecommunications ecosystem with opportunities to participate in evaluating regulations which when drafted well, safeguard the public interest, stimulate innovations and facilitate investment in the Market.

“The RIA process provided major stakeholders with an opportunity to offer feedback, as well as recommend areas for review and improvement that will enhance legislation. These enhancements will ensure the effective application and implementation of these Subsidiary Legislations,” he stated.

In her remarks, Whyte stated: “The successful completion of this RIA demonstrates our unwavering dedication to building a regulatory environment that supports innovation, fairness, and transparency.”

She added: “As we transition into the next phase, the outcomes of this assessment will guide the Commission’s regulatory review and reform agenda. They will form the basis for amending and updating relevant subsidiary legislation to better align with current realities and future aspirations.”

Whyte noted that the assessment focused on critical areas such as licensing, SIM registration, subscriber management, spectrum trading, enforcement procedures, and infrastructure sharing, among others.

“Through this review, we have identified opportunities to streamline processes, clarify obligations and remove outdated provisions that may hinder innovation or investment. What distinguishes this RIA is the depth of collaboration it entails. We drew insights not only from internal analysis but also from the invaluable feedback of industry stakeholders. Their practical perspectives and constructive contributions helped shape the recommendations that we present today,” she stated.