The Nigerian Communications Commission (NCC) has revealed that the telecommunications sector continues to be a significant contributor to Nigeria’s economy, making a substantial quarterly sectoral contribution to the nation’s Gross Domestic Product (GDP). The sector’s contribution has increased from around 8.5% in the third quarter of 2015, reaching a staggering N10.126 trillion contribution to the nation’s GDP in 2022 alone.
During an interactive session with stakeholders in the communications media ecosystem in Lagos, the Executive Vice Chairman (EVC) of the NCC, Prof. Umar Garba Danbatta, shared this information. He also highlighted the investment profile in Nigeria’s telecommunications sector, which encompasses foreign direct investment (FDI) and local investment, reaching $75.6 billion as of 2021.
Prof. Danbatta noted that the investment profile in the sector grew from $68 billion in 2018 to $70.5 billion in 2019 and $72 billion in 2020. By the end of 2021, it had risen to $75,560,563,417.79 ($75.6 billion). This latest figure represents the current official investment profile in the industry, surpassing the initial $70 billion investment made in the previous years.
The NCC CEO attributed this tremendous growth in the telecom sector to the effective regulatory environment established by the Commission. He highlighted that the sector’s investment profile had witnessed significant expansion from an initial investment of $500 million in 2001 when the sector was fully liberalized.
Citing data from the National Bureau of Statistics (NBS), Prof. Danbatta revealed that the telecoms sector made an aggregate quarterly contribution of N10.126 trillion to the nation’s GDP in 2022, further emphasizing the sector’s positive impact on Nigeria’s economy.
“In the first quarter, the sector contributed 12.94 percent equivalent to N2.246 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 N2.593 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 N2.436 trillion and N2.851 trillion respectively.
“The growth trajectory continued this year as telecommunications and Information Services sector in Nigeria delivered a handsome N2. 508 trillion in terms of financial value contribution to the nation’s gross domestic product, GDP, representing 14.13% in the first quarter of 2023,” he said.
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 particularly 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.”
Telecoms contribution to national GDP has grown significantly since the assumption of Prof. Danbatta as the EVC of NCC in August, 2015, according to available data from NBS.
From 8.50 percent in 2015, it grew to 9.13 percent in 2016 and to 8.66 percent in 2017. In the last quarter of 2018, telecoms contributed 9.85 percent to national GDP while it added 10.60 percent in the fourth quarter of 2019.
Also in the second quarter of 2010, it added 14.30 percent to GDP; 14.42 percent in the second quarter of 2021. The highest quarterly contribution to GDP by the sector to the economy was 15 percent in the second quarter of 2022.