NCC implements Accounting Separation Framework, starting with six companies

silhouette photo of transmission tower on hill 2525871The Nigerian Communications Commission (NCC) said it has commenced the implementation of an Accounting Separation Framework that mandates telecoms companies to submit their regulatory financial statements, RFS to the commission within seven months of the companies’ financial year

At this initial stage, the submission is limited to only six telecom companies - Airtel Nigeria, MTN Nigeria, Emerging Telecommunication Services (9 Mobile), Globacom Nigeria, all national mobile operators, Main One, a submarine cable and data services company, and IHS, a telecoms tower operator.

In limiting the initial submission to six companies, the NCC said the decision was taken to ensure the necessary structure is in place for reviewing and analysing the accounts before applying the new framework to all licensees in the country, but that any other licensee willing to prepare its financial statements in line with the new framework is allowed to voluntary do so.

The NCC said that for full and effective implementation of the framework, such telecom companies are expected to prepare for regulatory approval an Operator Accounting Separation Manual containing methodologies and procedures for accounting and cost allocation and submitted to the commission on or before 30 October 2020.

The commission said the new accounting procedures, which it pointed out, was developed through a consultative process will ensure transparency, accountability and prevent anti-competitive behaviour.  

Professor Umaru Dambatta, the executive chairman of NCC, said the commission considers the accounting separation framework an effective, least expensive and less costly solutions to implement its regulatory objectives.

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