The Nigerian Communications Commission (NCC) said that in the 12 years of operation of the Global System for Mobile communication(GSM) in Nigeria, the companies have not recorded any level of profit.
The Executive Vice Chairman of NCC, Dr. Eugene Juwah said the service providers have not reached their marginal profit level despite huge subscribers network. According to him, "the service providers have not been paying their mandatory Annual Operation Levies (AOL) due to the fact that the companies are not making profit.' The NCC boss said his submission was based on the accounting books the companies presented to NCC.
Former President Olusegun Obasanjo-led administration in 2001 opened up the country's communication network with the introduction of the Global Systems for Mobile communication (GSM) as part of government's liberilisation and privitisation programme.
The NCC's notion has generated reactions from Nigerians and stakeholders on the question on the accuracy of the accounting books of these companies, and also raising doubts as to whether these companies are remitting appropriate taxies to the Nigerian government.
In collaborating with Dr. Juwah's accusation, the NCC Director of Public Affairs, Tony Ojobo told LEADERSHIP SUNDAY that the reason the companies have not been making profit over the years is simply because they are still investing in the building of new Base Stations and other essentials to meet up with the overbearing demand for better services services.