For the next 2 years, Airtel, Glo, MTN, 9Mobile, IHS Nigeria and MainOne will have to provide the Communications Commission of Nigeria (NCC) with separate accounts for each of their activity in the country. The new accounting separation framework, drafted by the NCC, has entered into force.
Telecom operators will now have to present to the Communications Commission of Nigeria accounts for each of their activity in the country, in addition to general accounts. These documents must be provided to the telecoms regulator at the end of each financial year, according to a precise timetable.
This is what is recommended by the accounting separation framework to which the telecoms regulator has submitted the telecoms sector. It came into effect last week, the NCC announced on July 21, 2020. To keep everything going smoothly, the NCC has given operators until October 30, 2020 to provide it with a separation manual for validation. specific accountant (OASM) containing policies, principles, methodologies and procedures for accounting and cost allocation.
Until 2022, the telecom companies targeted by this new accounting policy are Airtel Nigeria, MTN Nigeria, Emerging Markets Telecommunications Services Limited (9Mobile), Globacom Nigeria, Main One Cable Company Limited and IHS Nigeria. NCC executive vice president Umar Garba Danbatta (pictured) explained that it was decided to first limit the new framework to the six operators to ensure that the structure needed to review and analyze the accounts is put in place. Then, the new regulatory framework will extend to all licensees in the telecoms sector.
The new accounting regulations “will foster an industrial environment that will contribute to open and transparent financial reporting, while ensuring that tariffs for telecommunications services are cost-based and non-discriminatory,” said Umar Garba Danbatta.
He specified that the accounting separation framework was developed in 2015 at the end of a consultative process which was the subject of a full review by the telecoms regulator, in collaboration with the holders of telecommunications licenses and other key stakeholders in the Nigerian telecoms industry.