The Federal Government has announced the approval of Revenue Assurance Solution (RAS), which it says is expected to generate revenue accruals of the Annual Operating Levy (AOL) from network operators to the tune of N1,207,016,942,000 in ten years.
This was disclosed in a statement by the Infrastructure Concession Regulatory Commission (ICRC) on Sunday.
It stated that RAS, designed by the Nigerian Telecommunications Commission (NCC) is expected to block possible gaps in revenue accountability, using cutting-edge technology solutions.
It stated that following the review and issuance of compliance certificate of the Full Business Case (FBC) by the Infrastructure Concession Regulatory Commission (ICRC), the Federal Executive Council (FEC) approved the Revenue Assurance Solution (RAS) project through the Design, Finance, Build, Operate and Transfer (DFBOT) Public Private Partnership (PPP) model.
The RAS, designed by the Nigerian Telecommunications Commission (NCC) and the Federal Ministry of Communications and Digital Economy (FMCDE), seeks to improve the collation and collection of Annual Operating Levy (AOL) from network operators.
ICRC said the next stage after approval 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 NCC initiated the process for the deployment of an RAS with the aim of blocking revenue leakages by ensuring that there are no errors in computing and collection of the AOL due to the Federal Government.
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.
ICRC added that the AOL regulations were initiated in 2014 amendment of the 2003 NCC Act, which enables “Every Licensee that is a Network Operator shall pay to the Commission an Annual Operating Levy assessed at two and a half percent of the Licensee’s Net Revenue for the relevant period being its Gross Revenue less its Roaming, Interconnect and Bandwidth Costs for the period.”
Licensees that are not Non-Network Operator are not expected to pay annually to the Commission an Annual Operating Levy, which is assessed at one percent of the Licensee’s Net Revenue for the relevant period being its Gross Revenue less its Roaming, Interconnect and Bandwidth Costs for the period, according to the ICRC.
Nigeria’s information and communications sector, which was one of the best performing sectors during the pandemic, recorded a decline in its growth rate, as its GDP growth rate stood at 6.55% in 2021 compared to 13.18% recorded in the preceding year.
