Since the sack of 26 DGs by the government, stakeholders in the nation’s digital migration are apprehensive that if current NBC leadership fails to follow Emeka Mba”s roadmap, Nigeria may miss 2017 deadline set by west Africa.Besides, the way and manner he drove the funding of Digital Switch Over with thoughtful leadership is worthy of emulation, Primetime Reporters’ correspondent reports.
Over the years, Nigeria’s international obligation to transition from analogue to digital broadcasting, known as Digital Switch Over (DSO), was stalled due to lack of funds. Successive governments failed to appropriate necessary funding for this very crucial national development program. Following the huge burden on the economy emanating from the 2015 elections which was around the corner within the critical period, and pressures of the war against Boko Haram, it became clear towards the end of 2014 that the last administration of President Goodluck Jonathan was also going to miss the June 2015 DSO deadline.
But in his thoughtful leadership, the former Director General of National Broadcasting Commission (NBC), Mr. Emeka Mba looked at a proposal from Technology Advisors, a leading ICT Law Firm in the country; 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 by the former President of the licensing covered not only the utilization of the proceeds realized for DSO, but also the format of the special auction to be conducted for the license, as well as provisioning of set-top-boxes (STBs), providing STB rebates, DSO publicity and other critical aspects of the DSO. MTN Communications Limited, who made the highest bid offer in the special auction process, was later licensed by the NBC and the proceeds was 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.
At this point, industry stakeholders began to appreciate the innovation and wisdom of the NBC under the leadership of Emeka Mba which was immediately recommended by the Commonwealth Telecommunications Organisation (CTO) for other nations battling with the funding of their DSO to meet the new regional DSO deadline set by the West African States.
With the understanding that Nigeria was about to create the largest digital free television network in the world with a known 26million television households, government also approved a household set top box rebate assistance scheme, for the most vulnerable families across the country, in other 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 STBs for the Jos DSO pilot and establishing manufacturing plants locally in Nigeria would be safe; and furthermore that governments funds were not paid upfront to anyone who may end up receiving the funds and frittering it away.
It was a win-win situation designed to guaranty the availability of the product 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 authorized 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 ploughed into a broadcasting fund for maintenance of the digital infrastructure, provide training for professionals in the industry, creation of digital content, and provide support to owners of some thematic channels such as children’s programming.
Stakeholders following the DSO have argued that it is 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 license fee.
Investigations have revealed that the NBC had with appropriate approvals entered necessary agreements with Zenith bank and the authorized STB manufacturers for the bank guarantees on manufacture of the STBs, 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 authorized STB manufacturers before the TSA directive took effect. It is a known fact that the rest of the funds was swept into the TSA by the bank.
In an interview with a Lagos based telecom expert, Dr. Lanre Omololu, he told journalists that “The former Director General of NBC, Emeka Mba, is a known agent of positive change and a proactive person who is even needed in this present government if am asked”.
He said Mba transformed the broadcast regulation at NBC and liberalized the industry for accelerated development.
Another ace broadcaster and opinion leader in the sector, Alhaji Garba Rano said Mr. 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.
Continuing, Alhaji Rano added that “The NBC received several local and international awards while he 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 to Directorship even when some of his predecessors refused to do the same.
“Emeka changed the NBC website which won the federal agency a 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 Basil Udotai, Esq., the Managing Partner of Technology Advisors, 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 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 realized, and to be paid 20% of the funds raised upon successful completion.
“The NBC Board however negotiated the rate downward to 10%, which was accepted by the firm. This proposal and the procedure adopted were approved by the then Board of the NBC and the former President.
The source therefore queried “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 morph 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.
Upon all these, it was touted in some quarters that Mba’s innovative manner of taking up and sorting out challenges resulted in the loss of his job.
The same group of poorly informed analysts alleged that the EFCC has “recovered” the sum of N34bn paid by MTN for Spectrum” which was allegedly stolen or mismanaged are false and without foundation. Followers of the industry are disturbed as such insinuations are not only baseless but are grossly misleading and a total misrepresentation of facts. The clear objective is to tarnish the immediate past management of the NBC under Mr. Emeka Mba and other individuals and companies mentioned in the false news in circulation.
Besides, investigations have shown that the purported recovery of N10billion is a total misrepresentation of facts. Details gathered from Zenith Bank indicate that the truth of the matter was that the authorized 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 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 guaranty was in the NBC DSO Collateral account and never left Zenith Bank.
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.
Only few days after the removal of Mr. Mba, 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 authorized 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.
No doubt, experts in digital broadcasting who met in Ibadan recently have called on the federal government to avoid anything that will derail DSO platforms 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. It will be unwise to throw away the baby with the bath water.
Besides, completion of the DSO has the potential of generating billions of dollars revenue for Nigeria and creating over 100,000skilled jobs and about a million unskilled jobs in the industry on a yearly basis just like the GSM revolution.
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