Having missed the digital switchover deadline twice, Nigerians are skeptical about the country’s chances of meeting the new June 20, 2017 date. Emma Okonji reports
The journey towards migration from analogue to digital broadcasting started on June 17, 2006, but Nigeria signed international and regional agreement to conclude the digital migration by June 17, 2012.
The federal government was forced to shift the migration date to June 17, 2015, following its inability to achieve the initial date, and through the NBC, set a deadline of January 1, 2015 as the switch off date.
In December 2012, a 14-man team tagged: ‘Digiteam Nigeria’, with Mr. Edward Amana as the Chairman, was inaugurated to drive the process of digital migration.
Although the Digiteam, in collaboration with the NBC, worked hard to conclude the migration by January 1, 2015, the efforts again did not yield result, as paucity of funds stalled the process.
Although Nigeria had failed twice to meet the DSO deadline, the immediate past Director General of the Nigerian Broadcasting Commission (NBC), Mr. Emeka Mba, had hoped he would eventually lead the country to achieve migration by June 20, 2017, which is the new deadline. But his hope was dashed following his sudden removal from office, along with other 26 DGs of federal government parastatals.
Mba’s hope of accomplishing the DSO task by June next year, was hinged on the level of work already carried out, following the N34 billion funding that the commission had raised from the licensing of 700MHz frequency slot to MTN to assist in the completion of the digital migration.
According to Mba, the commission had received approval from the federal government to raise money to fund the digital migration process, since the government was unable to release the substantial amount required for the funding.
Lack of funding had been the major reason for Nigeria’s inability to accomplish her DSO plans in the past.
Ironically, the same N34 billion that was raised from the licensing of MTN to fund the DSO, actually led to Mba’s removal as DG of NBC.
For several years, Nigeria’s international obligation to transit from analogue to digital broadcasting, had been stalled owing to lack of funds, as successive governments failed to appropriate necessary funding for this very crucial national development programme.
The huge burden on the economy as a result of the 2015 elections and the Boko Haram insurgency among others helped to stall the June 2015 DSO deadline.
However, Mba looked at a proposal from Technology Advisors, a leading ICT Law Firm in the country, and a dedicated DSO funding platform was developed on the basis of the free and available broadcasting spectrum, which by law is under the administration of the NBC. The express approval of the licence did not only authorise the utilisation of the proceeds realised for DSO, but also a special auction to be conducted for the licence. The approval also covered the provision of set-top-boxes (STBs), STB rebates, DSO publicity and other critical aspects of the DSO.
MTN Communications Limited, who made the highest bid in the special auction process, was later licensed by the NBC and the proceeds were immediately put to use as was directed by the former president in order to meet the new regional DSO deadline set by the West African States.
Nigerians are becoming skeptical about the country’s chances of meeting the new deadline in view of Mba’s removal as the NBC DG.
They argue that the country still miss the next deadline if the next DG decides to jettison what Mba had done to begin the process afresh.
According to them, much work has been put in place towards the pilot phase launch of the DSO project, and they expected the next DG to work hard in order to surmount the challenges that bedeviled the migration process since 2012.
Government, they noted is a continuum but some stakeholders have expressed the fear that successive governments in Nigeria always insist in doing things their own ways, instead of continuing from where their predecessors stopped. They therefore advised that the migration process should not be stopped by whoever takes over at the commission.
They argue that the country still miss the next deadline if the next DG decides to jettison what Mba had done to begin the process afresh.
According to them, much work has been put in place towards the pilot phase launch of the DSO project, and they expected the next DG to work hard in order to surmount the challenges that bedeviled the migration process since 2012.
Government, they noted is a continuum but some stakeholders have expressed the fear that successive governments in Nigeria always insist in doing things their own ways, instead of continuing from where their predecessors stopped. They therefore advised that the migration process should not be stopped by whoever takes over at the commission.
Set-Top-Boxes for DSO
With the understanding that Nigeria was about to create the largest digital free television network in the world with a known 26 million television households, government also approved a household set-top-box (STBs) rebate assistance scheme for poor families across the country. The scheme is to ensure that economically disadvantaged families are not cut off from watching television when the analogue switch off occurs.
The NBC, in consultation with all relevant stakeholders involved in the DSO, including the licensed set-top-box manufacturers, agreed on the STB rebate scheme financing, with the NBC providing the necessary “off taker guarantees” to all the STB manufacturers through Zenith Bank for the off-shore manufacture and delivery of STBs for the pilot DSO launch in Plateau State.
Industry watchers are aware that the major reason the guaranty was instituted was to ensure that the STB manufacturers were assured that their investment in importing the products for the Jos DSO pilot and establishing manufacturing plants locally in Nigeria would be safe. The guarantee was also to ensure that government’s funds were not paid upfront to anyone who may end up receiving the funds and do away with it.
It was a win-win situation designed to guaranty the availability of the products and the security of the government funds. The off-taker guarantees and also covers the cost of the provision of the digital content access fee (DCAF) for all the STBs by the authorised middleware provider (Inview Limited).
Part of the innovative plans was that the DCAF was to be used for activation of each STB and would be plough into a broadcasting fund for maintenance of the digital infrastructure, provide training for professionals in the industry, create digital content, and provide support to owners of some thematic channels such as children’s programming.
With the understanding that Nigeria was about to create the largest digital free television network in the world with a known 26 million television households, government also approved a household set-top-box (STBs) rebate assistance scheme for poor families across the country. The scheme is to ensure that economically disadvantaged families are not cut off from watching television when the analogue switch off occurs.
The NBC, in consultation with all relevant stakeholders involved in the DSO, including the licensed set-top-box manufacturers, agreed on the STB rebate scheme financing, with the NBC providing the necessary “off taker guarantees” to all the STB manufacturers through Zenith Bank for the off-shore manufacture and delivery of STBs for the pilot DSO launch in Plateau State.
Industry watchers are aware that the major reason the guaranty was instituted was to ensure that the STB manufacturers were assured that their investment in importing the products for the Jos DSO pilot and establishing manufacturing plants locally in Nigeria would be safe. The guarantee was also to ensure that government’s funds were not paid upfront to anyone who may end up receiving the funds and do away with it.
It was a win-win situation designed to guaranty the availability of the products and the security of the government funds. The off-taker guarantees and also covers the cost of the provision of the digital content access fee (DCAF) for all the STBs by the authorised middleware provider (Inview Limited).
Part of the innovative plans was that the DCAF was to be used for activation of each STB and would be plough into a broadcasting fund for maintenance of the digital infrastructure, provide training for professionals in the industry, create digital content, and provide support to owners of some thematic channels such as children’s programming.
Alleged misappropriation of funds for STBs
Although there were allegations that the N34 billion that was raised from the licence issuance, from which part of it was kept aside for the funding of STBs, was misappropriated, some stakeholders have argued that it was absurd for anyone to allege that the NBC defied the federal government’s directive on the Treasury Single Account (TSA) by diverting funds from the proceeds of the licence fee.
Investigations have revealed that the NBC had with appropriate approvals, entered necessary agreements with Zenith Bank and the authorised STB manufacturers for the bank guarantees on manufacture of the equipment, without which it would be impossible to achieve the digital switchover. A portion of the DSO fund was already encumbered through the bank guarantees provided for authorised STB manufacturers before the TSA directive took effect.
Investigations have revealed that the NBC had with appropriate approvals, entered necessary agreements with Zenith Bank and the authorised STB manufacturers for the bank guarantees on manufacture of the equipment, without which it would be impossible to achieve the digital switchover. A portion of the DSO fund was already encumbered through the bank guarantees provided for authorised STB manufacturers before the TSA directive took effect.
Mba’s achievements
Assessing the performance of the former NBC DG, a Lagos based telecom expert, Dr. Lanre Omololu said: “Mba is a known agent of positive change and a proactive person who is even needed in this present government if am asked.”
According to him, the former NBC boss transformed the broadcast regulation at commission and liberalised the industry for accelerated development.
Another ace broadcaster and opinion leader in the broadcast sector, Garba Rano, said Mba enabled the industry to grow and become key contributor in several international content markets such as MIPCOM, MIPTV, DISCOP, CABSAT and a host of others.
To him, “these platforms created foreign partnerships and attracted foreign investments in the broadcasting industry.”
Rano added: “The NBC received several local and international awards while Mba was at the helm of affairs. It was his presence that provided confidence and attracted several foreign investors into the industry. He elevated several senior staff members, even when some of his predecessors refused to do the same.
“Mba changed the NBC website, which attracted the Philips Consulting Award last year in Lagos and also brought about more professionalism in broadcast regulatory practice through reformative regulations and industry research.”
A source in NBC revealed that the Managing Partner of Technology Advisors, Basil Udotai, worked with NBC to prepare all memoranda and documentations required for all the approvals; developed the project framework; managed the special auction licensing process with the NBC; negotiated and drafted the Digital Terrestrial Television (DTT) License Agreement, amongst others.
According to the source, “For its ideas and services, the firm had asked for no upfront payment or any payment at all throughout the entire period of the project until the funding is realised, and to be paid 20 per cent of the funds raised upon successful completion.”
The source therefore queried that “If whether a consultant contracted by the federal government to deliver a service approved by the President should be paid upon full delivery of such services or not? How such contracted payment can be converted into a scam or fraud in anyone’s estimation is truly shocking. Interestingly, the news making the rounds failed to mention the more than half a billion naira paid by Technology Advisors to the Federal Inland Revenue Services (FIRS) as taxes on this transaction.”.
According to him, the former NBC boss transformed the broadcast regulation at commission and liberalised the industry for accelerated development.
Another ace broadcaster and opinion leader in the broadcast sector, Garba Rano, said Mba enabled the industry to grow and become key contributor in several international content markets such as MIPCOM, MIPTV, DISCOP, CABSAT and a host of others.
To him, “these platforms created foreign partnerships and attracted foreign investments in the broadcasting industry.”
Rano added: “The NBC received several local and international awards while Mba was at the helm of affairs. It was his presence that provided confidence and attracted several foreign investors into the industry. He elevated several senior staff members, even when some of his predecessors refused to do the same.
“Mba changed the NBC website, which attracted the Philips Consulting Award last year in Lagos and also brought about more professionalism in broadcast regulatory practice through reformative regulations and industry research.”
A source in NBC revealed that the Managing Partner of Technology Advisors, Basil Udotai, worked with NBC to prepare all memoranda and documentations required for all the approvals; developed the project framework; managed the special auction licensing process with the NBC; negotiated and drafted the Digital Terrestrial Television (DTT) License Agreement, amongst others.
According to the source, “For its ideas and services, the firm had asked for no upfront payment or any payment at all throughout the entire period of the project until the funding is realised, and to be paid 20 per cent of the funds raised upon successful completion.”
The source therefore queried that “If whether a consultant contracted by the federal government to deliver a service approved by the President should be paid upon full delivery of such services or not? How such contracted payment can be converted into a scam or fraud in anyone’s estimation is truly shocking. Interestingly, the news making the rounds failed to mention the more than half a billion naira paid by Technology Advisors to the Federal Inland Revenue Services (FIRS) as taxes on this transaction.”.
Misrepresentation of facts
Investigations have shown that the purported recovery of N10 billion is a total misrepresentation of facts. Details gathered from Zenith Bank indicate that the truth of the matter was that the authorised STB manufacturers, who were provided off-taker guarantees in the form of collateral for the manufacture and delivery of STBs for the DSO were meant to also open letters of credit for that purpose.
“However, it was agreed at a recent meeting between the Minister of Information, Zenith Bank and Economic and Financial Crimes Commission (EFCC) that the guarantees meant for those STB manufacturers, who were yet to open letters of credit through Zenith Bank, but have completed necessary agreements with their foreign original equipment manufacturers (OEMs) should be cancelled and the funds meant for them transferred to EFCC’s account, while those who have commenced theirs should complete the process. It should be noted that the funds for off-taker guarantee was in the NBC DSO Collateral account and never left Zenith Bank,” NBC said in a statement.
According to the commission, from the foregoing, it is important to clear the air and make it open that no money was missing, lost or stolen by anyone at NBC.
“The NBC followed the necessary processes and acquired appropriate approvals from the then Minister of Information, former Minister of Communications Technology and President Goodluck Jonathan to accelerate or fast track the NBC to successfully transit Nigeria to digital broadcasting,” it said.
Only a few days after Mba’s removal, the NBC took delivery of over 150,000 pieces of the STBs manufactured by SMK Engineering Limited and Gospell Technology Limited. These companies were part of the authorised manufacturers who were provided with bank guarantees by the NBC. Some of the companies have also manufactured theirs and are about to bring them into the country.
It is on this note that experts in digital broadcasting, who met in Ibadan recently, called on the federal government to avoid anything that will derail DSO platform and set up the former DG, stressing that it will be sad for Nigeria to miss another digital switchover deadline with all these disruptions. To them, everything must be done to achieve a successful digital switchover so that Nigeria can begin to reap the immense benefits of making this transition.
“However, it was agreed at a recent meeting between the Minister of Information, Zenith Bank and Economic and Financial Crimes Commission (EFCC) that the guarantees meant for those STB manufacturers, who were yet to open letters of credit through Zenith Bank, but have completed necessary agreements with their foreign original equipment manufacturers (OEMs) should be cancelled and the funds meant for them transferred to EFCC’s account, while those who have commenced theirs should complete the process. It should be noted that the funds for off-taker guarantee was in the NBC DSO Collateral account and never left Zenith Bank,” NBC said in a statement.
According to the commission, from the foregoing, it is important to clear the air and make it open that no money was missing, lost or stolen by anyone at NBC.
“The NBC followed the necessary processes and acquired appropriate approvals from the then Minister of Information, former Minister of Communications Technology and President Goodluck Jonathan to accelerate or fast track the NBC to successfully transit Nigeria to digital broadcasting,” it said.
Only a few days after Mba’s removal, the NBC took delivery of over 150,000 pieces of the STBs manufactured by SMK Engineering Limited and Gospell Technology Limited. These companies were part of the authorised manufacturers who were provided with bank guarantees by the NBC. Some of the companies have also manufactured theirs and are about to bring them into the country.
It is on this note that experts in digital broadcasting, who met in Ibadan recently, called on the federal government to avoid anything that will derail DSO platform and set up the former DG, stressing that it will be sad for Nigeria to miss another digital switchover deadline with all these disruptions. To them, everything must be done to achieve a successful digital switchover so that Nigeria can begin to reap the immense benefits of making this transition.
Fresh expectations
In spite of the controversies trailing the removal of the Mba, industry stakeholders have called on the next DG to make the federal government see the importance of migrating Nigeria from analogue to digital broadcasting, come June 20, 2017. They are of the view that the federal government was yet to see the importance of digital migration, hence the issue of funding had stalled the process of achieving the mandate for digital switchover. The stakeholders therefore advised that NBC must intensify efforts to ensure that government releases sufficient funds to drive the process to a conclusive end. They argued that June 2017 was close at hand, asking NBC to set new agenda, while considering the previous agenda for the actualisation of nation’s DSO plan.
They warned that should Nigeria misses out for the third time in June next year, the International Telecommunications Union (ITU) may not grant another extension to the country. The stakeholders explained that should Nigeria fail to meet up with the June 2017 deadline, the country may create frequency interference along border countries, which will attract sanction from ITU.
Now that Nigeria still has some months to achieve the switchover mandate, it is essential that NBC begins to make adequate preparations ahead of time, in order to overcome previous challenges.
They warned that should Nigeria misses out for the third time in June next year, the International Telecommunications Union (ITU) may not grant another extension to the country. The stakeholders explained that should Nigeria fail to meet up with the June 2017 deadline, the country may create frequency interference along border countries, which will attract sanction from ITU.
Now that Nigeria still has some months to achieve the switchover mandate, it is essential that NBC begins to make adequate preparations ahead of time, in order to overcome previous challenges.
http://www.thisdaylive.com/index.php/2016/03/17/as-nigeria-targets-new-digital-switchover-date/
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