NCC Clarifies Report On N17.3bn Deficit In 2021 Financial Statement

The Nigerian Communications Commission said the reason for the N17.3bn deficit it recorded in 2021 was due to accruals from projects.

The commission however did not deny retaining a deficit balance in its books but said the expenditure in its financials were both in cash and accruals in 2021.

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Accruals are recognition of expenses incurred but for which cash has not been settled.

The telecom regulator made the clarification on Tuesday after THE WHISTLER report revealed lavish spending on personnel costs which amounted to N34.16bn in 2021.

In 2020, the NCC spent N22.6bn on personnel costs, which, compared to 2021 rose by 51.4 per cent or an equivalent of N11.6bn.

The agency also said it spent N12.36bn on administrated and general expenses which rose by N5.95bn compared to N6.41bn spent in the 2020 full year.

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Project consultancies cost the NCC N1bn in 2021, up from the N386m spent in 2020.

The NCC said, “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)”, this 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.

“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 N24bn in the financial report.

“The Commission also remitted an Operating Surplus/Spectrum Fees of estimated N197.7bn to the Federal Government, under the same Financial Performance Reporting period, and had a bank balance of about N46.97bn.”

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