Nigerian Telecom Access Grows 11.26% Despite 46.89% Dip in Foreign Investment – NCC
TECHDIGEST – Nigeria witnessed an impressive 11.26% increase in telecommunication access during 2022, despite facing a significant 46.89% decline in Foreign Direct Investment (FDI), according to a recent report by the Nigerian Communications Commission (NCC).
The NCC’s ‘2022 Subscriber/Network Data Annual Report’ highlighted that operators successfully deployed an additional 12,882 base stations in 2022, elevating the total count to 127,294 from 114,412 in the previous year.
This expansion effectively enhanced the coverage and availability of essential telecom services like calling and internet access.This surge in access was further demonstrated by a rise in broadband penetration, reaching 47.36% by December 2022, up from 40.88% in the prior year.
Active subscriptions also experienced an upswing, climbing from 195.46 million in 2021 to an impressive 222.57 million.Moreover, the report disclosed a notable improvement in teledensity, ascending from 102.40% in 2021 to 116.60% in 2022.
Internet subscriptions saw a corresponding increase, growing from 141.97 million in 2021 to 154.85 million the following year.The NCC emphasized the widespread coverage of network technologies, stating that 93.90% of the population enjoyed access to a 2G network, while 86.82% had access to 3G, and 80.86% were covered by LTE/WiMAX networks.
The commission stated, “Telecom providers achieved significant infrastructure deployment in 2022.”
The expansion of fiber infrastructure, both terrestrial and submarine, was a key driver of the surge in data consumption, which jumped by 46.77% to reach 518,381.78 terabytes in the country. Such growth in telecom access plays a pivotal role in advancing the digital economy and ensuring effective communication services across the nation.
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Earlier this year, the NCC revealed a substantial reduction in the number of Nigerians without telecom access, which dropped by 37.04% to 27 million in 2022. Notably, the percentage of identified clusters lacking telecom access decreased to 53.1% by year-end.Prof. Umar Danbatta, the Executive Vice Chairman and CEO of NCC, highlighted the commission’s efforts to expand telecom services to rural and underserved areas.
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He noted, “We have diligently worked to bring telecom services to 37 million people residing in rural and underserved regions, a project initiated in 2013. By 2022, we have reduced access gaps to 97 clusters from the initial 207 in 2013, decreasing the number of underserved Nigerians from 37 million to 27 million.”
While telecommunication access flourished, FDI in the sector experienced a significant drop of 46.89%, falling to $399.91 million in 2022 from $753.05 million in the preceding year, underscoring the challenging economic conditions.Citing data from the Central Bank of Nigeria, the NCC stated, “Foreign Direct Investment (FDI) in the Nigerian telecom industry for 2022 totaled approximately $399.91 million, compared to $753.05 million in 2021.”
Despite the continued rollout of 4G and 5G networks, foreign investment decreased in 2022, largely attributed to the scarcity of foreign exchange and government policies.
The NCC’s ‘National Policy for the Promotion of Indigenous Content in the Nigerian Telecommunications Sector’ document estimated an annual foreign outflow of $2.6 billion, while the sector only attracted $399.91 million in the same period.
An industry expert highlighted the impact of foreign exchange shortage on equipment imports and investments, stating, “The lack of forex has hindered equipment imports and subsequently reduced investments. Additionally, challenges such as obtaining end-user certificates for equipment importation have further contributed to this decline.”
