In order to further ensure transparency and accountability with regard to effective regulation and prevention of anti-competitive behaviour, the Nigerian Communications Commissions (NCC) has commenced the implementation of the Accounting Separation Framework (ASF) in the Nigerian telecoms industry, from July 15, 2020.
The policy document, Determination on the Implementation of an Accounting Separation Framework for the Nigerian Telecoms Industry, which was developed via a consultative process in 2015, has undergone a comprehensive review by the regulator in collaboration with telecoms licensees and other critical industry stakeholders.
With the commencement of the implementation of the framework, telecoms licensees are, henceforth, obligated to submit their Regulatory Financial Statement (RFS) to the Commission in line with the new ASF, within seven months after the end of the licensees’ financial year.
Prof. Umar Danbatta, the EVC of the NCC expressed optimism about the framework noting that “the new ASF will promote an industry environment that fosters open and transparent financial reporting, while ensuring that charges for telecom services are cost-based and non-discriminatory.”
The Commission, however, stated that submission of RFS in line with the new framework, is currently limited to and mandatory for only six telecom licensees, adding that this will subsist for an initial period of two years after which the regulator may review the list to include other operators. The six licensees include Airtel Nigeria, MTN Nigeria, Emerging Markets Telecommunications Services Limited (9Mobile), Globacom Nigeria, Main One Cable Company Limited and IHS Nigeria.