The Nigerian Communications Commission (NCC) is set to unveil a revised corporate governance code, updating its 2016 guidelines with a crucial focus on mandatory sustainability reporting for telecom operators. This initiative aims to align Nigeria’s telecommunications sector with global environmental, social, and governance (ESG) standards, enhancing transparency and promoting sustainable development.
Dr. Aminu Maida, Executive Vice Chairman and CEO of the NCC, made the announcement at the 2024 Annual Corporate Governance Conference, themed “Corporate Survival and Sustainability: The New Face of Governance.” He emphasized that sustainability reporting—disclosing performance on ESG factors—is vital for telecom companies, providing stakeholders such as investors, customers, and regulators insights into how these operators manage risks and seize opportunities related to sustainability.
Key components of sustainability reporting will include metrics on carbon emissions, resource usage, labor practices, community engagement, and data privacy. Dr. Maida highlighted that such practices are no longer optional; they are essential for long-term success in the industry.
A comprehensive NCC analysis revealed a strong correlation between effective governance and regulatory compliance, indicating that companies lacking in governance often experience poor financial performance. Dr. Maida stated, “Good governance is not merely a regulatory obligation but a strategic necessity for sustainable business success.”
He outlined several essential components shaping the future of corporate governance in the telecom sector:
Adaptability: Governance frameworks must be flexible to adapt to rapid digital transformations and emerging technologies while ensuring accountability.
Data privacy and security: With telecom operators managing vast amounts of sensitive data, robust protection measures are critical. Dr. Maida warned that data breaches could have severe repercussions for both individual companies and the industry as a whole, emphasizing the need for comprehensive internal policies and compliance protocols.
He concluded by asserting, “Corporate governance is not just a regulatory organization; it is the foundation for the success and sustainability of our industry.”
NIN-SIM Linkage Completion and Industry Growth
Dr. Maida also discussed the successful completion of the National Identification Number (NIN) and SIM linkage initiative, mandated by the federal government in 2020. He acknowledged the challenges encountered during this process, which required all phone numbers to be linked to verified NINs. “While this process was difficult for many, it is essential to recognize the value this initiative brings. Today, every phone number can be associated with a verified NIN,” he stated.
Since liberalization in 2001, Nigeria’s telecommunications sector has evolved significantly, growing from just 305,000 active phone lines to over 150 million subscribers. This remarkable growth has contributed substantially to Nigeria’s Gross Domestic Product (GDP) and created numerous job opportunities.
Dr. Maida also addressed the rising issue of fraud in mobile financial transactions. As mobile channels become the primary banking mode—whether through mobile apps or USSD codes—the NCC is working with the Central Bank of Nigeria (CBN) to develop a robust framework to combat fraud in mobile financial services. He noted that “the majority of financial services are accessed via mobile,” linking the need for stronger enforcement measures to prevent fraud.
In conclusion, Dr. Maida’s insights reflect the NCC’s commitment to fostering a sustainable and secure telecommunications environment, ultimately aiming to empower Nigeria’s economy and enhance investor confidence in the sector.
