The Nigeria Communications Commission (NCC) is poised for a significant revenue surge with the imminent arrival of 6G technology, projecting a potential windfall of $1 billion. This ambitious target, outlined during the 2025 budget defence before the National Assembly, underscores the transformative potential of this next-generation wireless communication standard.
However, a major roadblock to the NCC’s revenue aspirations remains: the sluggish uptake of 5G spectrum licenses. Despite a recent 50% tariff hike, the Commission acknowledged that its spectrum sales this year are unlikely to meet initial projections.
“Two large operators already possess 5G spectrum, yet they are underutilising it,” lamented Yakubu Gontor, NCC’s Director of Financial Services. “The third major player, who we anticipated would acquire the available spectrum, indicated that now might not be the opportune moment.” This lack of industry enthusiasm casts a shadow over the Commission’s short-term revenue goals.
While Gontor emphasised the long-term value of spectrum leases (“It’s a 10-year cycle, much like leasing land”), the current market realities pose a significant challenge. The focus for telecommunications companies appears to be on service improvement and network expansion rather than immediate spectrum acquisitions.
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This shift in priorities has direct consequences for the NCC’s budget. The Commission projected a total revenue of N272.433 billion for 2025, with a significant portion reliant on operating levies and spectrum fees.
“We had to revise and be more realistic,” admitted Aminu Maida, the NCC’s CEO/EVC. The Commission fell short of its 2024 revenue target of N292.3 billion, primarily due to the failed 5G spectrum auction. This shortfall directly impacted the amount remitted to the Consolidated Revenue Fund (CRF).
Despite these challenges, the NCC remains optimistic about the future. “6G represents a paradigm shift,” Maida stated. “It will not only revolutionise telecommunications but also drive economic growth across various sectors.” The potential for 6G to unlock new revenue streams and propel Nigeria into a digital frontier is undeniable.
However, navigating the current market realities and fostering a more conducive environment for 5G adoption will be crucial for the NCC to achieve its ambitious revenue targets and fulfil its mandate of driving the nation’s digital transformation.
