Treasury eyes N1.2tr extra through RAS in 10 years
By Jeph Ajobaju, Chief Copy Editor
Abuja has floated a Revenue Assurance Solution (RAS) to generate N1.207 trillion as Annual Operating Levy (AOL) on telecom operators in 10 years.
RAS is designed by the Nigerian Telecommunications Commission (NCC) to block gaps in revenue accountability, using cutting-edge technology solutions, according to the Infrastructure Concession Regulatory Commission (ICRC).
The designed, done in collaboration with the Ministry of Communications and Digital Economy, seeks to improve collation and collection of AOL from network carriers.
The Federal Executive Council (FEC) approved RAS through Design, Finance, Build, Operate and Transfer (DFBOT) Public Private Partnership (PPP) after review and compliance certificate issuance for the Full Business Case (FBC) by the ICRC.
The next stage after approval will be the commercial close contract execution, with Messrs 3R Consortium as the Private Partner, the ICRC explained in a statement.
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Purpose of RAS
The NCC devised RAS to block revenue leakages by ensuring there are no errors in computing and collection of AOL due to the treasury, according to Nairametrics.
RAS is designed, among other functions, to
- Block gaps in revenue accountability, using cutting-edge tech solutions
- Provide additional layer of assurance that NCC licencees pay correct AOLs
- Ensure telcos meet other regulatory obligations without miscalculations and/or exemptions based on faulty and inaccurate data and information
- Improve current AOL revenue computation and collection system
The ICRC said AOL regulations were initiated in the 2014 amendment of the NCC Act 2003.
“Every Licencee that is a Network Operator shall pay to the Commission an Annual Operating Levy assessed at two and a half per cent of the Licencee’s Net Revenue for the relevant period being its Gross Revenue less its Roaming, Interconnect and Bandwidth Costs for the period,” the amendment says.
But licencees that are not Non-Network Operators are exempted from paying annually to the NCC an AOL assessed at 1 per cent of the Licencee’s Net Revenue for the relevant period being their Gross Revenue less their Roaming, Interconnect and Bandwidth Costs.
ICT performance
Nigeria’s information, communications and technology (ICT) was one of the best performing sectors during the pandemic but declined in growth, as its GDP growth rate stood at 6.55 per cent in 2021 against 13.18 per cent in 2020.