Telecom Sector’s Contribution to Nigeria’s GDP Reaches 16% – NCC
Nigeria’s telecommunications sector has achieved a remarkable milestone, contributing a significant 16% to the country’s Gross Domestic Product (GDP) during the second quarter of 2023.
This data, compiled by the Nigerian Communications Commission (NCC) and computed by the Nigeria Bureau of Statistics (NBS), underscores the sector’s growing importance in the nation’s economy.
During the annual Telecom Executives and Regulators Forum (TERF) hosted by the Association of Telecom Companies of Nigeria (ATCON) in Lagos, Prof. Umar Danbatta, the Executive Vice Chairman of NCC, shared this news.
He spoke on the theme, “Success Factors and Barriers to National Broadband and Digital Economy Aspirations,” highlighting the substantial strides made by the Commission.
Danbatta noted that the sector’s contribution has risen consistently, from 8% in 2015 when he assumed office as NCC’s EVC, to the current record-setting 16%. He attributed this growth to effective regulation and operational efficiency, emphasizing the collaborative efforts of all stakeholders.
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Despite challenges such as right of way issues, fiber cuts, high capital requirements, multiple taxes, and regulations, Danbatta assured that the NCC is actively addressing these barriers.
He also mentioned the burden of numerous taxes on telecom subscribers, with approximately 46 different taxes imposed on the sector. Regarding connectivity, Danbatta highlighted the reduction in access gaps across the country, attributing it to initiatives that promote access to telecommunications services.
These initiatives include government commitment to a digital economy, policy frameworks, investment promotion, infrastructure development, digital inclusion, and more.Looking ahead, Danbatta expressed confidence in achieving the 50% broadband penetration target by the end of 2023 and possibly surpassing the 70% target by 2025, in alignment with the Nigerian National Broadband Plan (NNBP), 2020-2025.
He commended ATCON and its members for their constructive engagement with the Commission and stressed that overcoming challenges requires determination, innovation, and strategic planning. Ultimately, Danbatta emphasized that success in Nigeria’s digital aspirations goes beyond technology and plays a vital role in transforming lives, driving economic growth, and ensuring global competitiveness.
He urged all stakeholders to remain committed to building a brighter, more connected future for the country.
