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I stopped fussing about the NBC Code once I realised that it was going to be implemented because once the patriotic stance takes centre stage it's a wrap. At this point it is to be thinking through the fallout and the effect on business
The Code story reminds me of the power privatisation. I used to be an energy Investor before I focused on telecoms media and technology. We pretty much saw every almost every consortium during that time looking to invest in the sector
We were financial investors and so we wanted to partner with strategic investor. Pretty much every single strategic we talked to said that they wouldn't invest their money alongside us but that they were happy to provide technical services
That was the clearest indication we had that the power privatisation wasn't backable - if the people with the most knowledge weren't willing to invest why would we. Ultimately we passed on all the opportunities during the privatisation and we never regretted doing so
Similarly the proponents of the new code are claiming it will spur investment but everyone who invests seems to be worried about it. There is a lot of underinvestment in the sector and it is not yet clear how this new code is supposed to spur investment, and the framework for it
There are a number of good provisions in the code but they are unlikely to bear fruit if the code reduces investment. It will be useful to hear who is ready to invest in the space on the back of the code coming into operation
The fact that broadcasters are unable to pay their broadcasting fees kind of shows the state of the finances of the operators in the industry. Will these operators become more attractive for investment under the new regulations? Investment they clearly need.
Maybe the $500m NTA received from the FG bond means they don't need private sector capital and can provide all the investment the sector requires but given the cost requirements of the Digital Switchover it may be tough to do everything
Ultimately if investment doesn't come the sector will not experience the transformation that the authors of the code are hoping for and it will end up being a lose lose for everyone.
Everyone seeking to energise a sector should take a cue from the NLNG Pencom and NCC Acts. Each unlocked a sector and transformed the lives of millions of Nigerians. If you don't have capital you have to attract it by creating the opportunity for economic returns. Selah.
