The Nigerian Communications Commission (NCC) says it will implement the Revenue Assurance Solution (RAS) to monitor revenue generated in a bid to block leaks in its Annual Operating Fee (AOL).
Professor Umar Danbatta, Executive Vice President (EVC) of the NCC, revealed this on Friday in Abuja, during an interactive session with stakeholders on the deployment of RAS in the Nigerian telecom industry.
Speaking about the importance of RAS to the nation’s economy, Danbatta said it would allow the commission to determine how much its licensees generate annually.
He explained that the technological solution would not wait for licensees to submit information to the commission before determining what they must pay as AOL.
“The official burden of deployment will fall on the operators. This project relieves the commission of the initial official burden that will be required for the deployment of the RAS project.
“It will also ensure that the revenue generated by the precise network operators is tracked, analyzed and used for the benefit of the industry. Beyond revenue assurance, when implemented NCC RAS will bring many solutions to the industry,” he said.
He added that the solution would include more effective and improved control and regulation of licensed telecom operators.
The EVC said the commission believed that implementing a proper revenue assurance solution would lend higher levels of integrity and fidelity to AOL’s numbers than are obtainable in the industry.
He said that the RAS would allow the NCC to validate information, records and data supplied to it from time to time, among others.
“This is in addition to plugging possible loopholes and leaks in the revenue calculation and collection processes. AOL is a very important tool in the regulation of the telecommunications industry. In Nigeria, the importance of AOL is well expressed in the Nigerian Communications Act of 2003.
“AOL can be described as the main root of an efficient and effective telecommunications regulatory environment. AOL’s charging and computation mechanisms are of interest and importance both to the regulator and to the operating networks”, he said.
He explained that various efforts had been made to achieve a highly effective administration of AOL, in accordance with the commission’s powers under Section 72 of the NCA Act 2003.
He reported that one of these key efforts includes the preparation of the 2014 Regulation, which is also currently under review.
According to him, some of the main objectives of the AOL Regulations, as provided in Part 1 (2) of the AOL Regulations of 2014, are: “To create and provide a regulatory framework for the effective and efficient administration of the regime of the Annual Operating Tax and all matters related thereto;
“Stipulate the mode and methods of evaluation of the Annual Operating Tax and the modes of payment thereof; specify rules and guiding principles for the administration of the annual operating tax regime.
He also said that the size of the Nigerian telecom industry and the revenue events involving operators, demands an effective, accurate and technology-driven revenue assurance solution that NCC-RAS represents.
He said that proper revenue assurance systems have resulted in increased revenues and plugging of leaks and that modern revenue assurance systems have proven to be equipped with additional capabilities to generate and analyze information beyond that required for revenue calculation. .
“The system is designed to be connected to the systems of licensed telecommunications operators. You’ll have the ability to capture and report billing activities in near real-time for purposes, among others.
“Calculate and secure with a minimum margin of error, if any, the accumulated AOL payable to the NCC,” he said.
He advised Ministries, Departments and Agencies (MDA) that might need data not to duplicate efforts but to go to the NCC to obtain it.
“This effort may be relevant for FIRS to pay taxes, there is no need to duplicate this government effort.
“So the essence is to ensure smooth cooperation from all the MDAs that require the kind of data that we will get from this effort. Which is for the calculation of other levies, operating tax levies that are supposed to be paid to the government.
“The benefits of this exercise are very long and that is why the Federal Government attaches great importance to this effort,” he said.
The Nigerian News Agency reports that the Federal Executive Council (FEC) recently approved the RAS project through the Design, Fice, Build, Operate and Transfer (DFBOT) Public Private Partnership (PPP) model.
The transaction received the ICRC Certificate of Compliance in accordance with the Provisions of the ICRC Act 2005 on December 17, 2021.
NAN
