The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Professor Umar Garba Danbatta, says the investment profile in the nation’s telecommunications sector, comprising foreign direct investment (FDI) and local investment, has reached $75.6 billion as of 2021.
Professor Danbatta stated this at an interactive session with the Information Communication Technology ICT/ Business Editors in Lagos where he rolled out his scorecards and landmark achievements that have shaped the trajectory of growth in the telecoms sector since he assumed office in August 2015..
According to Danbatta, in 2018, investment profile in the sector stood at $68 billion. This increased to $70.5 billion in 2019 and $72 billion in 2020. At the end of 2021, the figure rose to ($75.6 billion) and the latest figure is the current official investment profile computed in the industry up from the initial $70 billion investment in the last few years.
Investment in the telecommunications sector in Nigeria is computed from two sources: the Central Bank of Nigeria (CBN), and the financial data obtained from service providers by the Commission.
While the CBN collects and calculates an element of the telecoms sector to include FDI, portfolio and others, the Commission collects investment figures from telecom licensees described as domestic investment arising from capital expenditure (CAPEX) which form part of the total investment in the industry.
Professor Danbatta said through effective regulatory environment put in place by the Commission, the telecom sector has recorded tremendous growth from an initial investment profile of $500 million as at 2001, when the sector was fully liberalised.
He added that the telecom sector has continued to be a major contributor to the Nigeria’s economy and the sectoral contribution to the nation’s Gross Domestic Product (GDP) quarterly, up from about 8.5 per cent in third quarter of 2015, contributing N10.126 trillion to the nation’s GDP in 2022 alone.
Citing data from the National Bureau of Statistics (NBS), Professor Danbatta said the telecoms sector contributed N10.126 trillion as an aggregate quarterly contribution to GDP in 2022 as Telecoms contribution to national GDP has grown significantly since his assumption as EVC of NCC in August, 2015, according to available data from NBS.
The NCC Boss said the sector has become a major enabler of economic development in the country as it continues to positively impact all the facets of the economy.
In addition to the growth in investment and GDP contribution, Professor Danbatta added that as of May, 2023, active voice subscriptions reached 221.3 million, equivalent of 115.91 per cent teledensity, while Internet subscriptions rose to 159.6 million.
Broadband subscriptions on Third Generation (3G) and Fourth Generation (4G) networks increased to 92.2 million, representing a 48.28 per cent broadband penetration in the country.
Also, following the issuance of 3.5GHz spectrum licences for the deployment of Fifth Generation (5G) networks in Nigeria, marked by ultra-high speed internet, low latency and high capacity, and the subsequent commercial launch by two of the three licence holders, 5G subscriptions have grown to over 60,000 in many cities in at least 12 states of the Federation.
Professor Danbatta assured of the Commission’s commitment to always give concrete expression to the Federal Government Executive Order 001 focused on Ease of Doing Business and other digital economy-oriented policies, by embarking on various regulatory initiatives that support a friendly investment climate for investors in Nigeria and enhance value for money for telecom consumers.
The EVC further commended the media as a strategic partner and enabler of growth in the telecom sector through accurate, adequate and timely reporting of all regulatory activities of the Commission.
