In the wake of an effective monitoring plan over the concern of the sad state of the general conduct of stakeholders in the telecom business, the Nigerian Communications Commission has taken a decision to intensify its check to ascertain that the activities of the telecom licensees comply with the industry’s code of corporate governance.
Senator Olabiyi Durojaiye, Chairman, Governing Board, NCC stressed during the workshop that took place at Enugu State, Nigeria that the mandatory phase of cooperate code of governance which took effect in November 2016, was implemented to promote equity among the individual operators in the country for the sole purpose of sustenance.
However, it appears that the absence of an ethical code of conduct persists across the various segments which has resulted in the emergence of watchdogs or an intensified monitoring. ‘In line with a carefully developed monitoring and compliance plan, effective last quarter in 2017, the commission will intensify monitoring activities in relation to the code’, he stressed.
There were past ugly incidences which threatened the survival of the sector, with stakeholder taking laws into their hands and acting as they pleased. This necessitated a call to action, which gave rise to the birth to the ‘code of corporate governance’. At the time, the sector experienced several breaches of contracts, several licensed conditions were violated, no protection of human and labour rights, leading to a complete loss of reputation and prestige. With all these practices, the sector was at the mercy of destruction until last year. The Chairman said:
The mandatory compliance framework was introduced amidst a receding economy triggered off by a combination of factors such as falling oil prices, embarrassing public and private sector corruption, huge internal and external debts, weak income per capita/per head, excess of imports over exports resulting in adverse balance of trade and of international payment, huge expenses in combating Boko Haram damage in the North-East and infrastructural deficit and restiveness in the Niger Delta.
However, regardless of the inexplicable instability and mayhem of the country, the IT sector had an exceptional performance in its contribution to the country’s GPD of N1.4tn per quarter in 2016.
Durojaiye said further that a close survey demonstrated that the industry is experiencing a decline in its year-on-year gross earnings, from its top performance last year. This decline, he said is a result of poor quality and an increased debt and expenditure profile. It doesn’t come as a surprise when it is obvious that stakeholders who handle projects overcharge the cost of materials, inadvertently leading to a bankruptcy.