Business
Spectrum Licences Followed Due Process – NCC Boss
The Executive Vice Chairman of the Nigerian Communications
Commission, Dr. Eugene Juwah, has broken his silence over newspaper reports
alleging underhand dealings in the allocation of spectrum licences.
The major bone of contention has been the allocation of a
frequency slot belonging to the Nigeria Police to a private firm, OpenSkys.
Juwah noted in a
telephone chat that “due process was followed in the allocation and the process
was initiated long before he assumed office.
“When I assumed office, I pledged to myself to avoid the
Nigerian penchant of jettisoning projects initiated by past administrations.
All we did was to bring to a conclusion a process that began in 2009.”
Media reports have alleged frequent spectrum racketeering by
the current leadership of the telecoms industry regulatory agency to OpenSkys
and Smile Communications.
A statement from the NCC has attempted to put the issues in
perspective by providing clarification regarding how the spectrum allocation
process is carried out.
According to the NCC, the Frequency allocations to OpenSkys
were not only in “compliance with the Nigerian Communications Act, but also in
full implementation of a Presidential Directive of July 5, 2007.
This directive was fully deliberated upon by the Board of
the Commission during its 62nd, 63rd and 64th Sittings and other subsequent
meetings. “
The commission noted that the provisional offer of frequency
was made to OpenSkys as far back as October 2, 2009 and at that period “the
Nigerian Police was still occupying some of the frequencies in the 450MHz Band.
The then Ministry of Communications had on October 5, 2005,
conveyed to the Police the decision of the National Frequency Management Board,
for it to be relocated by the Commission.
“The decision to allocate part of the 450Mhz frequency was
therefore not made by the NCC nor by Dr, Juwah. It was a decision that predated
his appointment by almost five years.
In fact, the NCC noted that the approval for commercial and
corporate entities to “use the 450 MHz for commercial telecommunications
was given by the National Frequency Management Council (NFMC) on
November 5, 2004.
After this approval, occupants in this band like the police,
NITEL, Shell, Chevron, and some others, were relocated to specific portions of
the band. The NCC was categorical that the frequency reserved for the police
has not been tampered with or reallocated to OpenSkys, as has been alleged in
some media reports.
The relocation of occupants in the various portions of the
band was ongoing till 2009. The NFMC approved Frequency bandwidth of 500 KHz
for the Nigerian Police specifically on 469.375 – 469.975 MHz / 459.375 –
459.975 MHz of this spectrum for relocation away from the Commercial Band.
When the Inspector General of Police approved the
relocation, following further meetings with NIGCOMSAT on behalf of OpenSkys,
NIGCOMSAT also submitted the cost of the relocation. The Commission then made
an initial offer of frequency to OpenSkys on February 4, 2009, with a condition
of acceptance within 30 days. OpenSkys accepted the offer on February 23, 2009
almost two years before Dr. Juwah was appointed as EVC.
On October 2, 2009, a clear one year before Dr. Juwah was
even appointed EVC, the NCC management upon review of the status of the offer,
thereafter “issued a provisional offer of the frequency to Openskys on the
condition of payment of total spectrum fees for the 5MHz spectrum for a tenure
of 5 Years of N1,140,000,000 (One Billion, One Hundred and Forty Million Naira
Only), out of which the sum of N247,544,989.40 was earmarked for the
replacement of digital radio equipment of the Nigerian police as may result
from the relocation. The sum of N892,455,010.60 representing the balance of the
spectrum fees for the offer was to be paid to the Commission.”
The NCC noted in their statement that such fees for
Frequency allocation are “paid, mandatorily, into the federation account and a
letter of frequency assignment stating the exact frequency channels, and other
conditions of use is usually issued to the company upon receipt of proof of
payment.”
These, the NCC explained are the processes in place to
ensure transparency in the process and they were all followed to the letter.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
