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The telecommunications sector has made a significant contribution to Nigeria’s Gross Domestic Product (GDP), reaching 16% in the second quarter of 2023, as reported by the Nigerian Communications Commission (NCC), citing the recent release by the Nigeria Bureau of Statistics (NBS).
Prof. Umar Danbatta, the Executive Vice Chairman of NCC, shared this information during his keynote address at the Telecom Executives and Regulators Forum (TERF), organized by the Association of Telecommunications Companies of Nigeria (ATCON) in Lagos.
Danbatta noted that the telecommunications sector’s contribution had grown from 14.13% in the first quarter of 2023 and surpassed the previous all-time high of 15% recorded in the second quarter of 2022, now standing at 16% for Q2 2023.
He attributed this remarkable growth to the substantial expansion in broadband penetration since 2015. Back then, the sector contributed around 8% to the GDP when he assumed the role of EVC of NCC. The consistent increase in quarterly GDP since then has positively impacted various facets of the economy.
Danbatta emphasized that the effective regulatory framework established by the NCC, combined with support from stakeholders, has played a pivotal role in the industry’s success.
Despite challenges such as right-of-way (RoW) issues, fiber cuts, high capital requirements, multiple taxes, and regulations, Danbatta reaffirmed that the NCC was working resolutely to navigate these challenges and enhance digital inclusion and literacy, tackle security concerns, and collaborate with stakeholders like ATCON to devise solutions.
Regarding RoW challenges, he highlighted that there were approximately 46 different taxes imposed on telecom operators by various government agencies and tiers of government, especially at the state and local levels. This complexity burdens telecom subscribers economically.
Addressing connectivity, Danbatta mentioned a significant reduction in access gaps across the country. The NCC has been driving initiatives that promote access to telecommunications services and has achieved this through government commitment, robust policy frameworks, investment promotion, infrastructure development, digital inclusion, competition, and market liberalization, effective spectrum allocation, and fostering the e-government ecosystem.
Mr. Tony Izuagbe Emoekpere, President of ATCON, explained that the forum aimed to stimulate discussions on critical national infrastructure, attract more investments into the telecoms sector, and address key challenges while proposing solutions.
Telecom operators, represented by Gbenga Adebayo, Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), called for an upward review of telecoms tariffs. They emphasized the sector’s need for the total independence of the NCC to implement policies supporting its growth, highlighting that telecoms’ cost of delivering services had become unsustainable, especially given the sector’s significant contribution to the GDP and the disparity in the cost of delivering services compared to other sectors.
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