The Nigerian Communications Commission (NCC) prepares to launch a revised corporate governance code, updating the 2016 version to include mandatory sustainability reporting for telecom operators. This initiative aims to align the sector with global environmental, social, and governance (ESG) standards, enhancing transparency and promoting sustainable development in Nigeria’s telecommunications industry.
Dr. Aminu Maida, Executive Vice Chairman and CEO of the NCC, announces this at the 2024 Annual Corporate Governance Conference, themed “Corporate Survival and Sustainability: The New Face of Governance.” He explains that sustainability reporting requires telecom companies to disclose their ESG performance, providing stakeholders—such as investors and regulators—with insights into how they manage sustainability-related risks and opportunities. This includes reporting on carbon emissions, resource usage, labor practices, and data privacy.
Dr. Maida emphasizes that sustainability becomes crucial for the long-term success of telecom companies. He shares findings from an NCC analysis of corporate governance, which assesses indicators like board composition, diversity, effectiveness, and compliance. The analysis reveals a strong link between effective governance and regulatory compliance, indicating that good governance is vital for sustainable business success.
Key components shaping the future of governance in the telecom sector include
Adaptability: Governance frameworks need flexibility to keep pace with digital transformation and emerging technologies.
Data Privacy and Security: As telecom operators manage vast amounts of sensitive data, robust data protection measures become essential. Dr. Maida warns that data breaches can have severe consequences, underscoring the need for strong internal policies and compliance protocols.
He concludes that “corporate governance is not just a regulatory requirement; it serves as the foundation for the success and sustainability of our industry.”
In discussing the NIN-SIM linkage initiative mandated by the federal government in 2020, Dr. Maida acknowledges the challenges faced in linking all phone numbers to verified National Identification Numbers (NINs). He highlights the initiative’s success in ensuring every phone number associates with a verified NIN, aiming to prevent the use of unregistered SIM cards.
Reflecting on the growth of Nigeria’s telecommunications sector since its liberalization in 2001, Dr. Maida notes the increase from 305,000 active phone lines to over 150 million subscribers today, showcasing the industry’s significant contribution to Nigeria’s economy.
Lastly, he addresses the rising issue of fraud in mobile financial transactions. With mobile banking becoming increasingly prevalent, the NCC collaborates with the Central Bank of Nigeria (CBN) to establish a framework to combat fraud in mobile financial services. He points out that the current system lacks effective penalties for phone numbers linked to fraudulent activities, highlighting the need for stronger enforcement measures.
