Reps panel threatens arrest warrant against Bello-O

The House of Representatives adhoc committee investigating the
operational activities of telecoms operators panel yesterday
threatened to issue an arrest warrant against the Chairman of the
defunct Etisalat Nigeria, Akeem Bello-Osagie as well as the Chief
Executive Officer (CEO) of Airtel Nigeria for shunning the panel’s
summons.

According to the Hon. Ahmed Abu- headed committee, Bello-Osagie
and the Airtel CEO refused to honour the invitations by the panel
to answer questions on alleged tax evasion by Airtel and former
Etisalat

Abu while speaking at the National Assembly during a public
hearing yesterday described the behaviour of the two men as
unacceptable adding that an arrest warrant would be issued against
them should they fail to appear on the next invitation.

His words: “It’s important that your MD is here. Public interest
overrides any other interest. We don’t want anybody to play this
card to say people will lose their jobs. Nigerian workers are
ultimate.

“It’s only in Nigeria where what happened in the transition
between Etisalat and 9Mobile will happen. We looked into the books,
and the balances are annoying. You must bring Bello-Osagie here,
else we’ll issue arrest warrant against him.

He said while speaking on the Airtel CEO: “when next we do a
letter to the CEO of Airtel and he doesn’t turn up, we’ll issue an
arrest warrant against him.”

However, because he was in a meeting at the Presidential villa,
the Chairman of the Federal Inland Revenue Service (FIRS),
Babatunde Fowler could not appear before the lawmakers hence the
spect of 5 percent Value Added Tax charges on sales of recharge
cards could not be treated.

Meanwhile, another ad-hoc panel of the House which is probing
the various intervention funds by the Central Bank of Nigeria
(CBN), has summoned the Managing Director of the Assets Management
Company of Nigeria (AMCON), Ahmed Kuru.

At the same committee hearing, the Director General of the
Nigeria Lottery Commission, Lanre Gbajabiamila said that while
approximately 295 licensed Value-added Service (VAS) providers have
generated about N80 billion revenues across the four operators
within the past 4 years , MTN alone is grossing about 50 percent of
the entire revenue

He said it is therefore evident that there is need for the
revenue sharing formula between Mobile Network Operators and
Value-added Service (VAS)/Digtal content and Mobile- based lottery
providers be reviewed upwards in favour of the VAS providers.

Gbajabiamila, said the sharing formulae should now be 60- 40 in
favour of the VAS providers.

“VAS partners are largely responsible for running lottery/promo
services in behalf of the operators. As these initiatives are very
resource consuming, it is important that any partner looking to
engage in it is well prepared in terms of funding and planning of
their expectations and returns.

” The resources and creativity the continues to be applied to
VAS and digital content generation are the key components to the
success of the industries..

“Over the years, collaborations between MNOs and the VAS
partners have seen revenue share continue to take a fall from 60 to
30 percent on the average, to as low as 15 percent to VAS providers
in some cases.”

He said previously, VAS partners who held licenses from the
Lottery Regulatory Commission were guided by certain sets of
provisional rules which are easily applied according to the type
and scale of promo offering being proposed..

But that the guideline seems to be varying in ways that VAS
partners are struggling to comply with. “And this is the basis of
the presentation of our position to this honorable assembly.”

Gbajabiamila said the current lottery ACT 2005 seem to address
mostly main stream lottery services, usually based in ticket sales
and returns.

While citing, sections 20,24,35 and 57 of the Act he said a
minimum of 50 percent of the proceeds of the National Lottery is to
be paid to a prize fund, which is dedicated to the payment of
prizes.

He however said that approximately 295 licensed VAS providers
have generated about N80 billion revenues across the four operators
within the past 4 years ” of which MTN is grossing about 50 percent
of the entire revenue.”

Members of the committee agreed that there is need to upgrade
the share of the VAS providers adding that the Mobile Network
Operators are obviously not treating the VAS providers fairly.

The House of Representatives adhoc committee investigating the
operational activities of telecoms operators panel yesterday
threatened to issue an arrest warrant against the Chairman of the
defunct Etisalat Nigeria, Akeem Bello-Osagie as well as the Chief
Executive Officer (CEO) of Airtel Nigeria for shunning the panel’s
summons.

According to the Hon. Ahmed Abu- headed committee, Bello-Osagie
and the Airtel CEO refused to honour the invitations by the panel
to answer questions on alleged tax evasion by Airtel and former
Etisalat

Abu while speaking at the National Assembly during a public
hearing yesterday described the behaviour of the two men as
unacceptable adding that an arrest warrant would be issued against
them should they fail to appear on the next invitation.

His words: “It’s important that your MD is here. Public interest
overrides any other interest. We don’t want anybody to play this
card to say people will lose their jobs. Nigerian workers are
ultimate.

“It’s only in Nigeria where what happened in the transition
between Etisalat and 9Mobile will happen. We looked into the books,
and the balances are annoying. You must bring Bello-Osagie here,
else we’ll issue arrest warrant against him.

He said while speaking on the Airtel CEO: “when next we do a
letter to the CEO of Airtel and he doesn’t turn up, we’ll issue an
arrest warrant against him.”

However, because he was in a meeting at the Presidential villa,
the Chairman of the Federal Inland Revenue Service (FIRS),
Babatunde Fowler could not appear before the lawmakers hence the
spect of 5 percent Value Added Tax charges on sales of recharge
cards could not be treated.

Meanwhile, another ad-hoc panel of the House which is probing
the various intervention funds by the Central Bank of Nigeria
(CBN), has summoned the Managing Director of the Assets Management
Company of Nigeria (AMCON), Ahmed Kuru.

At the same committee hearing, the Director General of the
Nigeria Lottery Commission, Lanre Gbajabiamila said that while
approximately 295 licensed Value-added Service (VAS) providers have
generated about N80 billion revenues across the four operators
within the past 4 years , MTN alone is grossing about 50 percent of
the entire revenue

He said it is therefore evident that there is need for the
revenue sharing formula between Mobile Network Operators and
Value-added Service (VAS)/Digtal content and Mobile- based lottery
providers be reviewed upwards in favour of the VAS providers.

Gbajabiamila, said the sharing formulae should now be 60- 40 in
favour of the VAS providers.

“VAS partners are largely responsible for running lottery/promo
services in behalf of the operators. As these initiatives are very
resource consuming, it is important that any partner looking to
engage in it is well prepared in terms of funding and planning of
their expectations and returns.

” The resources and creativity the continues to be applied to
VAS and digital content generation are the key components to the
success of the industries..

“Over the years, collaborations between MNOs and the VAS
partners have seen revenue share continue to take a fall from 60 to
30 percent on the average, to as low as 15 percent to VAS providers
in some cases.”

He said previously, VAS partners who held licenses from the
Lottery Regulatory Commission were guided by certain sets of
provisional rules which are easily applied according to the type
and scale of promo offering being proposed..

But that the guideline seems to be varying in ways that VAS
partners are struggling to comply with. “And this is the basis of
the presentation of our position to this honorable assembly.”

Gbajabiamila said the current lottery ACT 2005 seem to address
mostly main stream lottery services, usually based in ticket sales
and returns.

While citing, sections 20,24,35 and 57 of the Act he said a
minimum of 50 percent of the proceeds of the National Lottery is to
be paid to a prize fund, which is dedicated to the payment of
prizes.

He however said that approximately 295 licensed VAS providers
have generated about N80 billion revenues across the four operators
within the past 4 years ” of which MTN is grossing about 50 percent
of the entire revenue.”

Members of the committee agreed that there is need to upgrade
the share of the VAS providers adding that the Mobile Network
Operators are obviously not treating the VAS providers fairly.