Revenue Assurance: NCC Moves to Mitigate Revenue Leakages, MNOs Anticipate Positive Impact

Bukola Olanrewaju July 5, 2023 TECHNOLOGY Leave a comment

In its move to reduce revenue leakages as digital disruptions and developments in the telecoms industry raised concerns and challenges in the sector, the Nigerian Communications Commision (NCC) has revealed details about the implementation of the Expanded Revenue Assurance Solution (ERAS).

The Commission’s Executive Vice Chairman/Chief Executive Officer, Prof. Umar Garba Danbatta at a meeting with Mobile Network Operators (MNOs) on revenue assurance in NCC’s Lagos office yesterday said ERAS will help address and alleviate revenue leakages.

Revenue Assurance is a business process to identify, measure & prevent the risk point of revenue leakage – the difference between expected revenue and actual revenue to assure minimum opportunity loss. The billing solution is a data quality and process improvement method that improves profits, enhances financial performance, revenues and cash flows without influencing demand.

A research states that the global Telecom Billing Software market size is expected to grow at a CAGR of 8.5% from 2020 to 2025.

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Danbatta recognized the efforts of the NCC in transforming the dream of the ERAS project, conceived in 2007, into a reality.

By deploying the Revenue Assurance Solution, Danbatta said the NCC aims to optimise the revenue payable by licensed telecommunications service providers, thereby bolstering revenue generation for the government.

Also Read: 3R Limited Bags Telecoms Revenue Assurance Award at TIA 2022

He stressed the collaboration between the NCC and the Infrastructure Concession and Regulatory Commission (ICRC), saying the ERAS project is being carried out through a Public-Private Partnership (PPP) arrangement, following the DFDDOT model (Design, Finance, Develop, Deploy, Operate, and Transfer), as recommended by the ICRC.

According to the NCC Boss, the project align with the
Federal Government’s directive to enhance revenue collection and prevent leakages within ministries, departments, and agencies (MDAs).

Initially designed to focus on telecom operators, who have not only become major industry players but have also expanded their services into the digital services ecosystem, the ERAS project underwent a significant expansion.

In June 2022, following a presidential approval, the NCC was directed to broaden the scope of the project to encompass the activities of Digital Economy stakeholders. Consequently, the project was renamed the Expanded Revenue Assurance Solution (ERAS).

The implementation of the ERAS demonstrates the NCC’s commitment to fostering transparency, accountability, and financial efficiency within the Nigerian telecom and digital services sectors. Through the utilisation of accurate data and information, the ERAS aims to eradicate wrong computations, faulty data, and information leakages

With the telecom industry playing a critical role in driving economic growth and enabling digital transformation, the ALTON Chairman’s commendation and the ongoing efforts of the NCC under Danbatta’s leadership highlight the commitment to creating an enabling regulatory environment that fosters innovation and sustainable development.

As the implementation of the Expanded Revenue Assurance Solution progresses, stakeholders within the telecom and digital services sectors eagerly anticipate its positive impact on revenue generation and the overall growth of the Nigerian economy.