The telecoms sector’s contribution to nation’s gross domestic product (GDP) has increased to 16% in second quarter of 2023. This information comes from data reported by the Nigerian Communications Commission (NCC) and computed by the Nigeria Bureau of Statistics (NBS).
The executive vice chairman (EVC) of NCC, Umar Danbatta, stated this in a keynote address delivered at annual telecom executives and regulators forum (TERF) hosted by Association of Telecom Companies of Nigeria (ATCON) in Lagos on Thursday. According to Danbatta, from a 14.13% contribution in initial quarter of 2023, and up from hitherto 15% all-time-high record contributed in second quarter of 2022, telecommunications sector added 16% to national GDP in second quarter of 2023 to set a record.
Danbatta, while speaking on theme, “Success Factors and Barriers to National Broadband and Digital Economy Aspirations”, took audience, promising executives of telecom companies and other industry stakeholders, through strides being made by Commission. From about 8% contribution to GDP in 2015, when Danbatta came on board as EVC of NCC, he says quarterly GDP has increased to reach its current threshold of 16% and that this has continued to positively impact all aspects of economy.
“Through sustained regulatory excellence and operational efficiency by the Commission, the industry has grown in leaps and bounds over the past two decades and this has impacted on all other sectors of the economy. The effective regulatory regime emplaced by the NCC and with the support from all stakeholders has been our major success factor as an industry,” adds Danbatta.
The EVC stated that while there are barriers to broadband deployment in country, ranging from issue of right of way (RoW), fibre cuts, high capital requirement for deployment, multiple taxation and regulations, among other challenges, NCC is navigating regulatory complexities, digital divide and literacy, security concerns with firmness and increased collaborations with necessary stakeholders such as ATCON (Association of Telecommunications Companies of Nigeria) to create measures towards tackling challenges.
On RoW challenge, EVC says there are about 46 different taxes directed at telecom sector at the moment. Such charges and levels, coming in various names, are imposed on telecom operators by some agencies and tiers of government, especially at state and local levels. Danbatta says challenge translates into economic burdens on telecom subscribers in country.
“Over the years, we have identified some clusters of access gaps all over the country but we have recorded a significant drop in the number of access gaps, as we continue to drive initiatives that boost access to telecommunications services.” adds Danbatta.
He stated that commission does this by enlisting government commitment to a digital economy with policy frameworks, promotion of investment and funding, stimulation of infrastructure development, digital inclusion and literacy, promotion of competition and market liberalisation, productive allocation of spectrum, as well as driving e-government ecosystem.
“The NCC is confident that we are going to reach 50 and broadband penetration threshold by the end of 2023 and by 2025, we would have met and possibly surpassed the 70% broadband penetration target, as contained in the Nigerian national broadband plan (NNBP), 2020-2025.” adds Danbatta.
The EVC particularly commended ATCON and its members for being partners in progress and for constantly engaging commission in constructive ways towards finding solutions to myriad of challenges confronting industry. The EVC says a national broadband network and a thriving digital economy are not without their challenges.
“However, these challenges can be overcome through determination, innovation, and strategic planning. By focusing on the success factors and addressing the barriers, we can create a future where every Nigerian have access to the opportunities that the digital world offers” adds Danbatta.
Danbatta also stated that growth of nation’s digital aspirations is beyond technological advancements but also about changing lives, driving economic growth, and ensuring that a nation remains competitive on global stage.
“As we work together to navigate this path, I enjoin all our stakeholders in the public and private sectors to remain committed to building a brighter and more connected future for our country,” adds Danbatta.
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