Regulatory Framework of Telecommunication Sector: A Comparative Analysis Between Nigeria and South Africa
| Pages | 273-290 |
| Author | Marcus Ayodeji Araromi |
| DOI | 10.3366/ajicl.2015.0121 |
| Date | 01 June 2015 |
| Published date | 01 June 2015 |
Nigeria and Republic of South Africa have had chequered histories in the development and regulation of their communication sectors. These two countries now have well-developed laws regulating this crucial sector of the economy and have considerable markets for deployment of communication services in Africa, which informs the reason for comparing the regulatory regimes of the two countries. Moreover, Nigeria remains the Africa's largest democracy and the most liberalised telecommunications market in the continent of Africa.
“An Overview of the Nigerian Telecommunications Environment,” Chief Executive/Vice-Chairman, NCC, ITU Telecom Africa, (2004), available at
South Africa is 1,127sq.km consisting of nine geographical and political entities or provinces.
See particularly section 5 of the Constitution of the Federal Republic of Nigeria 1999. See also Chapter VI of the same Constitution.
A. Tooki, ‘A New Dimension to Nigeria's Telecom Revolution’, available at
Since 1999 when the democratic governance was ushered in, the attention of the world had turned to Nigeria as the country with the highest potential for Information Communications Technology (ICT) investment on the African continent. With the attainment of stable democratic rule, Nigeria has continued to attract the attention of serious local and foreign investors that have come to take advantage of the new clime of investment potentials that the nation presents.
The importance that communication plays in the economic development of a nation cannot be underestimated; in fact, it serves as a valve for getting goods and services across geographical spreads. The relationship between economic development and telecommunications has been said to be so interwoven to determine which one takes priority over the other.
G. A. Alabi, ‘Telecommunications in Nigeria’, University of Pennsylvania – African Studies Center, available at
Electronic communication involves the process by which messages could be sent across the globe through the use of the computer, telephone line and a modem.
Freedom of communication is a fundamental right recognised internationally, which is believed to give people the right to express themselves freely. Nigeria has also provided in its Constitution a right to freedom of expression and the press. The 1999 Constitution of the Federal Republic of Nigeria states in section 39(1) that every person shall be entitled to freedom of expression, to hold opinions and to receive and impart ideas and information without interference. The Constitution further provides that every person shall be entitled to own, establish and operate any medium for the dissemination of information ideas and opinions after fulfilling certain conditions.
Section 39(2) of the Constitution of the Federal Republic of Nigeria, 1999.
The above background has given the assurance that the government of Nigeria recognises the fundamental right of expression and has given legal backing to it. As no society can effectively cohabit as a unit without effectual means of communication, it is important that there should be appropriate penetration of the available means of communication. Succinctly put by Alabi:
Every human society, from the most primitive to the most advanced, depends on some form of telecommunications network. It will be virtually impossible for any group of people to define their collective identities or make decisions about their common and binding interests, without communications. Communication networks make society a reality.
G. A. Alabi,
Prior to the merger of Post and Telegraph Department and Nigerian External Telecommunications Limited, each of these organisations was responsible for the provision of the internal and external telecommunications services, respectively. These two bodies were wholly owned by the Nigerian government. The existence of separate organisations for the management of the internal and external telecommunications networks was not a recipe for an efficient national telecommunications network because of the lack of coordination that existed between the two operating entities in development planning, implementation, operation, project phasing, maintenance and billing.
G. A. Alabi,
‘Telecommunications in Nigeria – Legal framework’, available at
The Nigeria Communication Commission (NCC) was established in 1992 under a Decree, later labelled as the Nigeria Communication Commission (NCC) Act,
Nigeria Communications Commission Act, No 75 1992.
to exercise jurisdiction over the regulation of telecommunication in Nigeria.Note that the Nigeria Broadcasting Act No.38 1992 also replicates the same provision for the broadcasting sector of the Nigerian economy.
J. I. Wojuade, ‘Impact of Global System for Mobile Telecommunication on Nigerian Economy: A Case of Some Selected Local Government Areas in Oyo State, Nigeria’, MEd Thesis. University of Ibadan, Nigeria (2005).
However, the telecommunication sector of Nigeria attained full deregulation with the fully fledged democratic rule that came into being in 1999. In 2003 the then president of Nigeria, Olusegun Obasanjo, signed the new Nigeria Communications Act (NCA) into law after being passed by the National Assembly, which repealed the NCC Act of 1992 and other previous enactments.
Section 150(1) of the Nigerian Communications Act 2003 repealed the Nigerian Communications Commissions Act 1992, the Nigerian Communications Commission (Amendment) Act 1998, the Telecommunications and Postal Offences Decree No. 21 of 1995 and all subsequent amendments thereto.
Prior to the repeal of the 1992 Decree, the NCC Decree merely opened up the market to allow PTOs to compete with the incumbent service providers in all areas of provision of telecommunications services, except exchange and trunks, and international services.
This was one of the events in the sector that led to the advocacy for the break up of the monopoly hitherto enjoyed by the incumbent telecom operator (TO) with the immediate appointment of two (2) national carriers to compete with NITEL for local, trunk and international services during the Obasanjo regime.
The NCC, under the 1992 Decree, was meant to be an autonomous body regulating the telecom sector, while the Ministry of Communications maintained the policy-making function for the sector and frequency coordination. However, the Commission could not be regarded as truly autonomous as final approval for the granting of licences came from the Presidency based on the recommendation from the NCC through the Ministry of Communications. This led to a situation where licences were granted or refused based on the level of influence the applicants could wield among the powers in the government. The NCC was often compelled by powerful elements to recommend applicants for approval irrespective of whether they were qualified or not.Further, the NCC was empowered to exercise control only over the PTOs and not the national carrier, NITEL. The Commission could merely license the private operators and type-approve their equipment but lacked the capacity to call NITEL to order and could not compel NITEL to interconnect the licensed operators. This was a major problem as most of the PTOs even with their networks in place, could not commence their operations. A strengthening of the powers of the NCC was therefore advocated in order to be able to create a level playing field and the creation of a conducive environment...
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