Nigeria’s telecom investment is reported to have recorded a significant increase in the second quarter (Q2) of 2023, rising from $38 billion to $77 billion.
This was disclosed by the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta who lauded the milestone during a media chat with media industry stakeholders in Kano.
According to Prof. Danbatta, the telecom sector contributed 16 percent to Nigeria’s Gross Domestic Product (GDP) during this period, (Q2) 2023.
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In his words,
“From about eight percent contribution to GDP in 2015, when I came on board as the EVC of NCC, quarterly GDP has increased significantly to reach its current threshold of 16 percent and this has continued to positively impact all aspects of the economy”.
Prof. Danbatta lauded his leadership as NCC boss while disclosing that through the effective implementation of NCC’s mandates, the telecommunications industry in Nigeria has achieved remarkable milestones under his watch.
“While we acknowledge the challenges encountered by the industry, we have also witnessed explosive growth, improved regulatory standards, and digital innovations that have garnered global recognition”, he said.
While disclosing impressive statistics that have characterized his leadership at NCC from 2015 to date, the Danbatta said that active telephone subscribers had increased from less than 150.7 million to 218.9 million, representing a teledensity growth of 115.70 percent from 107.87 percent in 2015.
Through stimulating broadband infrastructure across the country, he said broadband penetration, which stood at 6 percent in 2015 has increased significantly to 47.01 percent as of July 2023, enhancing over 89.73 million subscriptions on 3G, 4G, and 5G networks in the country.
Additionally, general internet subscriptions have reached 159.5 million up from less than 100 million in 2015.
“Also, from an 8 percent contribution to the Gross Domestic Product (GDP) in 2015, telecommunications sector now contributes 16 percent quarterly to the Nigerian economy as of the second quarter of 2023.
“Besides, following the authorization of more telecommunications companies to operate in Nigeria’s telecoms sector, the investment profile has increased tremendously from $38 billion in 2015 to $75 billion currently and this keeps growing daily. From the sales of Fifth Generation (5G) C-Band Spectrum, the NCC has generated over $847.8 million for the Federal Government”, he said.
While the NCC is still faced with a number of challenges such as multiple taxation, vandalism, and securing equitable Right of Way (RoW) from governmental stakeholders, the commission remains committed to ensuring that there is a sustained growth trajectory.
As the national target to achieve 70 percent broadband penetration by 2025 is receiving significant attention, the NCC has promised to achieve a broadband penetration of 50 percent before the end of 2023.