LEADERSHIP

Nigeria: Nigcomsat, NCC Disagree Over Licence Issuance

18 January 2008
Posted to the web 18 January 2008

Nigerian Communication Satellite (NIGCOMSAT) and National Communication
Commission (NCC) on Wednesday disagreed over the non-issuance of spectrum
licence to NIGCOMSAT.

NCC insisted that it had to be privatised before it could issue the licence
to NIGCOMSAT.

However, NIGCOMSAT said it qualified for the licence, since the spectrum
would be operated through its downstream sector. The two organisations took
their positions  during the House of Representatives Committee on Communication's
investigation into the NCC's refusal to issue the licence to NIGCOMSAT.

The House had, at its plenary session on January 15 mandated the committee
to investigate the refusal of NCC to issue the licence to the satellite firm,
as it earlier directed.

Also, last year, the House passed a resolution mandating the NCC to issue
the licence as recommended by its committee on communications. Alhaji Ahamed
Rufai, NIGCOMSAT managing director, told the committee that the downstream
sector dealt with public information, while the upstream sector related to the
satellite and other security related information.

"The issue of privatisation does not even arise, because our downstream
sector is qualified to operate the spectrum licence," he said.

He said the sector was set up a with U.S.$200 million (N23 billion) loan to
service the Private Telecommunication Operators (PTOs).

In his response, Mr. Earnest Ndukwe, NCC Executive Vice-Chairman, said the
Commission had nothing against NIGCOMSAT.

Ndukwe, however, blamed the conflicting directives from the presidency for
non-issuance of the licence.

He said the earlier directive by former President Olusegun Obasanjo for the
commission to issue the licence was halted by the presidency in Nov. 2007.
Ndukwe said the NCC was directed in a letter, to advise NIGCOMSAT to float a
subsidiary company that could be awarded the licence.

He said this followed the Federal Executive Council (FEC) directive against
the privatisation of the satellite company based on security implications.

The NCC chief said the FEC decision on the proposed privatisation of
NIGCOMSAT was informed by observation by the National Security Adviser (NSA), who
highlighted the security risks associated with the privatisation of the
company.

Apart from setting up a subsidiary company, Ndukwe said, NIGCOMSAT was
further advised by the NCC to take over 49 per cent equity shares of NITEL, since
it was only 51 shares that were sold.

As a way of resolving the deadlock, he said, a stakeholders' meeting was
convened by Vice-President Goodluck Jonathan, where a committee was raised to
study the issues involved and report back within one week. (NAN)

NCC - http://www.ncc.gov.ng Executive Vice-Chairman: Ernest Ndukwe

NIGCOMSAT - http://www.nigcomsat.org MD/CEO: T. Ahmed Rufai