NCC to introduce Revised Governance Code for Sustainable Telecom Practices.

The Nigerian Communications Commission (NCC) is preparing to issue a revised corporate governance code, updating the 2016 version with a key focus on the introduction of mandatory sustainability reporting for telecom operators.

This initiative aims to align the sector with global environmental, social, and governance (ESG) standards, promoting greater transparency and supporting sustainable development within Nigeria’s telecommunications landscape.

The Executive Vice Chairman of the NCC, Dr. Aminu Maida, disclosed this during his address at the 2024 Annual Corporate Governance Conference in Lagos, State, Southwest Nigeria, themed “Corporate Survival and Sustainability: The New Face of Governance.”

Voice of Nigeria reports that sustainability reporting involves organisations disclosing information about their ESG performance. This practice provides stakeholders—including investors, customers, and regulators—with insights into how telecom operators manage risks and opportunities related to sustainability. Key components include reporting on carbon emissions, resource usage, labour practices, community engagement, and data privacy.

Dr. Maida emphasized the importance of sustainability in corporate governance, highlighting that “such practices are no longer optional but essential for the long-term success of telecom companies.”

Analysing Corporate Governance

Dr. Maida presented findings from a comprehensive NCC analysis evaluating corporate governance among telecom operators. Key indicators examined included board composition, diversity, effectiveness, ethical conduct, compliance, risk management, and corporate social responsibility.

The analysis revealed a strong correlation between effective governance and regulatory compliance, with companies not excelling in governance facing poor financial performance.

This, he noted, demonstrates that “good governance is not merely a regulatory obligation but a strategic necessity for sustainable business success.”

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Future of Corporate Governance

Dr. Maida outlined essential components shaping the future of corporate governance in the telecom sector:

Adaptability: As digital transformation and emerging technologies redefine the landscape, governance frameworks must adapt while ensuring accountability.

Data Privacy and Security: With telecom operators handling vast amounts of sensitive data, robust data protection measures are imperative.

Dr. Maida warned that “data breaches could have dire consequences for both individual companies and the sector as a whole,” emphasizing the need for governance frameworks that prioritize data security through comprehensive policies and compliance protocols.

In addition, he remarked, “Corporate governance is not just a regulatory organization; it is the foundation for the success and sustainability of our industry.”

Dr. Maida also highlighted the impressive growth of Nigeria’s telecommunications industry since its liberalization in 2001. “From just 305,000 active phone lines in 2001, we now boast over 150 million active telecom subscribers,” he stated, emphasizing the sector’s significant contributions to Nigeria’s Gross Domestic Product (GDP), job creation, and economic empowerment.

Tackling Fraud in Mobile Transactions

Dr. Maida addressed the increasing problem of fraud in mobile financial transactions. With mobile channels becoming the primary mode for banking, whether through mobile apps or USSD codes, the NCC is collaborating with the Central Bank of Nigeria (CBN) to develop a robust framework to combat fraud in mobile financial services.

“The majority of financial services are accessed via mobile, which ties back to the phone numbers used for these transactions,” he explained.

Dr. Maida acknowledged that the current system lacks effective consequences for phone numbers involved in fraudulent activities and stressed the need for stronger enforcement measures.