Umar Danbatta, the executive vice-chairman of the Nigerian Communications Commission (NCC), says the country has attracted $75.6 billion in investment through the telecommunications sector.
The amount comprises both foreign direct investment (FDI) and local investment, as at 2021.
Danbatta spoke at an interactive session with stakeholders in the communications media ecosystem in Lagos on Wednesday, according to a statement by Reuben Muoka, director of public affairs at NCC.
Highlighting his achievements, the NCC boss said the telecom sector has experienced a trajectory of growth since he became the chief telecom regulator in August 2015.
According to Danbatta, “investment profile in the sector stood at $68 billion, in 2018. This increased to $70.5 billion in 2019, and $72 billion in 2020. At the end of 2021, the figure rose to $75,560,563,417.79 ($75.6 billion)”.
“The latest figure is the current official investment profile computed in the industry up from the initial $70 billion investment in the last few years,” he said.
“Investment in the telecommunications sector in Nigeria is computed from two sources: the Central Bank of Nigeria (CBN), and the financial data obtained from service providers by the commission.
“While the CBN collects and calculates an element of the telecoms sector to include FDI, portfolio, and others; the commission collects investment figures from telecom licensees described as domestic investment arising from capital expenditure (CAPEX) which form part of the total investment in the industry.”
Danbatta also said through the effective regulatory environment put in place by NCC, the telecom sector has recorded tremendous growth from an initial investment profile of $500 million as at 2001 when the sector was fully liberalised.
‘SIGNIFICANT CONTRIBUTION TO GDP’
He said the telecom sector has made a major am impressive contribution to Nigeria’s gross domestic product (GDP).
Citing data from the National Bureau of Statistics (NBS), Danbatta said the telecoms sector contributed N10.126 trillion as an aggregate quarterly contribution to the nation’s GDP in 2022.
The vice-chairman said the revenue was an 8.5 percent rise from the amount recorded in the third quarter (Q3) of 2015.
“In the first quarter, the sector contributed 12.94 percent equivalent to N2.246 trillion while the second quarter witnessed an all-time high GDP contribution by the telecom sector to the nation’s economy, standing at 15 percent and valued at N2.593 trillion.
“The sector’s contribution to GDP in the third was 12.85 percent and in the fourth quarter, it grew to 13.55 percent, which are valued at N2.436 trillion, and N2.851 trillion respectively.
“The growth trajectory continued this year as the telecommunications and information services sector in Nigeria delivered a handsome N2.508 trillion in terms of financial value contribution to the nation’s gross domestic product, GDP, representing 14.13 percent in the first quarter of 2023.
“As of May, 2023, active voice subscriptions reached 221.3 million, equivalent to 115.91 percent teledensity, while internet subscriptions rose to 159.6 million.”
The NCC boss added that broadband subscriptions on third-generation (3G) and fourth-generation (4G) networks increased to 92.2 million, representing a 48.28 percent broadband penetration in the country.
“Following the issuance of 3.5GHz spectrum licences for the deployment of fifth-generation (5G) networks in Nigeria, marked by ultra-high-speed internet, low latency, and high capacity, and the subsequent commercial launch by two of the three licence holders, 5G subscriptions have grown to over 60,000 in many cities in at least 12 states of the federation,” he added.
‘MAJOR ECONOMIC ENABLER’
Danbatta said the sector has become a major enabler of economic development in Nigeria, as it continues to positively impact all the facets of the Nigerian economy.
“As the regulatory authority for the telecom sector in Nigeria, we are happy that the sector has recorded phenomenal growth statistics in the past two decades of the liberalisation of the telecoms sector,” he said.
“However, we will not rest on our oars. We will continue to push upward to greater heights by encouraging the expansion of frontiers to put Nigeria’s imprint on the global map of the digital economy.”
Danbatta, therefore, assured of the commission’s commitment to always give concrete expression to the federal government executive order 001 focused on ease of doing business and other digital economy-oriented policies.
Source: Top Stories
