Revenue Assurance Solutions: FG targets N1.2trn from Network Operators in 10 years
Abimbola Abatta and Ayo Olaseinde
The Federal Government is set to generate N1.2 trillion from Network Operators in the country through its 10-year Revenue Assurance Solutions (RAS) project.
The Nigerian Telecommunications Commission (NCC) and the Federal Ministry of Communications and Digital Economy (FMCDE) designed the RAS to improve the collation and collection of Annual Operating Levy (AOL) from network operators.
The Federal Executive Council (FEC), on Wednesday, approved the Revenue Assurance Solution (RAS) project through the Design, Finance, Build, Operate and Transfer (DFBOT) Public Private Partnership (PPP) model.
In a statement in Abuja, the Acting Head Media and Publicity of the Infrastructure Concession Regulatory Commission (ICRC), Mr. Manji Yarling, provided the N1.2trn estimate.
Yarling explained that the RAS would block revenue leakages by ensuring that there were no errors in computing and collection of the AOL due to the Federal Government.
According to him, “With the approval by FEC and a requisite vetting by the Federal Ministry of Justice, the next stage will be the commercial close – contract execution, with Messrs 3R Consortium as the Private Partner.
“The RAS which is to span a 10-year period, is expected to increase the revenue accruals from AOL to the tune of N1,207,016,942,000:00 (One trillion, two hundred and seven billion, sixteen million, nine hundred and forty two thousand naira only) within the period.
“The RAS is expected to block possible gaps in revenue accountability, using cutting-edge technology solutions and shall provide additional layer of assurance that the licensees of the Commission pay the correct Annual Operating Levies and meet other regulatory obligations without any miscalculations and/or exemptions based on faulty and inaccurate data and information.
“The deployment of the RAS platform will significantly improve the NCC’s current AOL revenue computation and collection system, amongst other benefits.”
Meanwhile, while reacting to the development, an Economic Analyst and Social Commentator, Zakka Bala, averred that the N1.2 trillion naira the Federal Government seeks to generate in 10 years is too small.
Bala said the COVID-19 pandemic ushered in a more active digitalisation era, where many companies and individuals work and attend events virtually, thereby leading to an increase in the services provided by the telecommunications operators.
He maintained that the surge in the consumption of data and airtime equates increase in the revenue generated by telecommunications companies.
In his words, “As far as I am concerned, that amount is too small because everything has gone digital now. Because of COVID-19, a lot of multinational companies are operating from home. Many people now carry out online activities on platforms like Skype, Zoom, and teleconferences. Many more people are buying data. Apart from factory workers, staff of many national corporations are operating from home.
“There is a high consumption of petrol and diesel. Apart from that, there is so much consumption of data. When you talk about telecommunications, they generate money from data and phone calls. Many people are making use of YouTube, Zoom, WhatsApp, Skype, and others more than ever before.
“Many executives and experts have screens in their houses, and when they are discussing with their employees, they make use of these conferencing platforms. And what tool do they use?
“If you want to work on Skype, Zoom, Instagram, or Twitter you need data. So, when you talk about phonecalls alone, it may look small, but in the real sense, there is so much. Even the online transactions of these financial institutions require data. Many people do not go to the banks anymore. And it’s these telecommunications companies that provide these services.
“By the time one analyses the consumption of data, one will realise that the amount is too small. Most of the activities we do today require the use of data. Ministers and government officials can participate in meetings virtually, and this is made possible through the use of data.
“There was a time when ministers, governors, and other government officials used to be physically present at events. But now, these people can connect virtually. And the telecommunications operators are responsible for providing the data they use,” he added.
