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HomeBusinessTotal investment in Nigeria's telecoms industry hits $75.6 bln, says NCC chief

Total investment in Nigeria’s telecoms industry hits $75.6 bln, says NCC chief

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Nigeria’s telecommunication sector has received a total of $75.6 billion in investment as of the end of 2021, according to the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Umar Danbatta.

Danbatta, in a recent presentation, said the investment in the nation’s telecom sector comprises of foreign direct investment and local investment as of 2021.

He gave the breakdown of the investment in the sector as $68 billion in 2018, and rose $2.5 billion to $70.5 billion in 2019, and then up to $72 billion by the end of 2020.

He said that, by 2021, the figure has risen to $75.56 billion. He, however, did not disclose the figure for the subsequent years up to 2022.

Danbatta stated that investment in the telecoms sector is computed from data from two sources; namely the Central Bank of Nigeria (CBN) and the financial data obtained from service providers by the commission.

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Danbatta said the sector’s investment profile has recorded tremendous growth from its initial investment profile of $500 million as of 2001.

The telecom industry regulator also disclosed that subscriptions to the 5G network have grown to over 60,000 across many cities in 12 states in the country.

He disclosed the sector’s contribution to GDP in 2022 and 2023, saying, “In the first quarter, the sector contributed 12.94 percent equivalent to N2.25 trillion while the second quarter witnessed an all-time high GDP contribution by the telecom sector to the nation’s economy, standing at 15 percent and valued at N2.59 trillion.”

“The sector’s contribution to GDP in the third was 12.85 percent and in the fourth quarter, it grew to 13.55 percent, which are valued at N2.44 trillion and N2.85 trillion respectively.”

“The growth trajectory continued this year as the telecommunications and Information Services sector in Nigeria delivered a handsome N2.51 trillion in terms of financial value contribution to the nation’s gross domestic product, GDP, representing 14.13 percent in the first quarter 2023,” he said.

The NCC boss stated that; The telecom environment requires a regulatory climate that is predictable, innovative, dynamic, and visionary, to be able to meet, and even surpass the demands of the current economic, social, and environmental demands of all stakeholders, especially with regard to availability, accessibility and affordability.

The Commission is committed to strengthening collaboration with the media as an important stakeholder in achieving the digital economy targets of the Federal Government.

(omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138

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