Telecoms Investment Surpasses $75.6 Billion In Nigeria – Prof. Danbatta
•Contributes N10.126 Trillion To GDP in 2022
The Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, in an official declaration stated that the investment in Nigeria’s telecommunications sector has reached $75.6 billion as of 2021. He disclosed this during an interactive session with stakeholders in Lagos, where he highlighted the significant developments and achievements in the telecom sector since he assumed his role in August 2015.
According to Danbatta, the investment profile in the sector was $68 billion in 2018, which increased to $70.5 billion in 2019 and $72 billion in 2020. By the end of 2021, it rose to $75,560,563,417.79 ($75.6 billion). The investment figures are derived from data obtained from the Central Bank of Nigeria (CBN) and financial data provided by service providers to the Commission.
Danbatta emphasized that the regulatory environment put in place by the Commission has facilitated significant growth in the telecom sector. The sector’s initial investment profile was $500 million in 2001 when it was fully liberalized. He also highlighted the sector’s substantial contribution to Nigeria’s economy, with the telecoms sector contributing N10.126 trillion to the nation’s Gross Domestic Product (GDP) in 2022 alone.
The National Bureau of Statistics (NBS) data cited by Danbatta showed that the telecom sector’s aggregate quarterly contribution to GDP in 2022 was N10.126 trillion. The first quarter contributed 12.94%, equivalent to N2.246 trillion, while the second quarter witnessed a record-high GDP contribution of 15%, valued at N2.593 trillion. The third and fourth quarters contributed 12.85% (N2.436 trillion) and 13.55% (N2.851 trillion), respectively.
Danbatta highlighted the steady growth of the telecom sector’s contribution to national GDP since he assumed his role in 2015. It increased from 8.50% in 2015 to 9.13% in 2016 and 8.66% in 2017. In the last quarter of 2018, it reached 9.85%, and in the fourth quarter of 2019, it rose to 10.60%. The second quarter of 2021 recorded a contribution of 14.42%, while the highest quarterly contribution of 15% occurred in the second quarter of 2022.
The EVC emphasized that the telecom sector has become a significant driver of economic development in Nigeria, positively impacting all aspects of the economy. He expressed the Commission’s commitment to further expanding the sector and positioning Nigeria in the global digital economy.
Danbatta also shared other statistics, including active voice subscriptions reaching 221.3 million (115.91% teledensity) and Internet subscriptions reaching 159.6 million. Broadband subscriptions on 3G and 4G networks increased to 92.2 million, representing a 48.28% broadband penetration. With the issuance of 3.5GHz spectrum licenses for 5G networks in Nigeria, 5G subscriptions have exceeded 60,000 in various cities across 12 states.
The EVC praised the media as a strategic partner and enabler of growth in the telecom sector, acknowledging their role in accurate reporting of regulatory activities. He assured stakeholders of the Commission’s commitment to supporting a favorable investment climate and enhancing value for telecom consumers, in line with government policies on ease of doing business and the digital economy.