NCC denies incurring N17bn deficit in 2021 budget

By Business A.M. 

The Nigerian Communications Commission (NCC) has denied incurring a deficit of N17 billion by allegedly spending N35.2 billion on personnel costs and consultancy fees.

Reuben Muoka, NCC’s director, public affairs, in a statement made available to Business A.M,, said that the commission was concerned with the inability of an online publication to accurately interpret the contents of its 2021 Annual Reports which had been made public.

Mouka said the publication gave a wrong impression that the commission incurred a N17bn deficit because of expenditures on personnel and consultancy fees, noting that the publication is far from the truth.

NCC maintained that though the statement of the financial performance of the commission for the period ended December 2021, clearly indicates that the sum of N17.3bn was a “Surplus/deficit retained for the period, it does not imply that the Commission incurred a cash deficit as the expenditure in its financials were both in cash and accruals applicable to the year.

“If the publication had inquired of the constituents of our expenditures, it would have learnt that the expenditures for the year 2021 included accruals for items undergoing procurement at the end of the year.

“Like the State Accelerated Broadband Initiative, (SABI), being implemented by the commission which was standing in the sum of about N24 billion in the financial report,” he said.

Mouka also noted that the commission remitted an operating surplus/spectrum fees of estimated N197.7 billion to the federal government under the same financial performance reporting period.

He added that the commission had a bank balance of about N46.97 billion, erasing any doubt that there was any deficit spending.

Dwelling on this, Mouka said, “The commission, therefore, disclaims the wrong impression created by the online publication and subsequent misinterpretation of our financial report in the publication may have had in the minds of the public and stakeholders.

The commission also reiterated its commitment to the effective and transparent processes in all its regulatory, management and financial activities.