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Telecoms investment in Nigeria now $75.6bn, Danbatta declares
Nasiru Yusuf Ibrahim
The Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, has officially announced that 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.
KANO FOCUS reports that Danbatta disclosed this at an interactive session with stakeholders in the communications media ecosystem, in Lagos on Wednesday where he provided his scorecards and landmark developments that have shaped the trajectory of growth in the telecoms sector since he became the chief telecom regulator 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 $75,560,563,417.79 ($75.6 billion). 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.
The NCC CEO 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.
Similarly, Danbatta said the telecom sector has continued to be a major contributor to the Nigeria’s economy through an impressive 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), Danbatta said the telecoms sector contributed N10.126 trillion as an aggregate quarterly contribution to GDP in 2022.
“In the first quarter, the sector contributed 12.94 per cent 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 per cent and valued at N2.593 trillion. The sector’s contribution to GDP in the third was 12.85 per cent and in the fourth quarter, it grew to 13.55 per cent, 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 2023,”he said.
Telecoms contribution to national GDP has grown significantly since assumption of Prof. Danbatta as the EVC of NCC in August, 2015, according to available data from NBS.
From 8.50 per cent in 2015, it grew to 9.13 per cent in 2016 and to 8.66 per cent in 2017. In the last quarter of 2018, telecoms contributed 9.85 per cent to national GDP while it added 10.60 per cent in the fourth quarter of 2019.
Also in the second quarter of 2010, it added 14.30 per cent to GDP; 14.42 per cent in the second quarter of 2021. The highest quarterly contribution to GDP by the sector to the economy was 15 per cent in the second quarter of 2022.
Overall, Danbatta said the sector has become a major enabler of economic development in Nigeria, as it continues to positively impact all the facets of the Nigerian economy. “As the regulatory authority for the telecom sector in Nigeria, we are happy that the sector has recorded phenomenal growth statistics in the past two decades of the liberalization of the telecoms sector. However, we will not rest on our oars. We will continue to push upward to greater heights by encouraging expansion of frontiers to put Nigeria’s imprint on the global map of digital economy,” he said.
In addition to the growth in investment and GDP contribution, Danbatta said, “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.
According to the CEO of NCC, 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.
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.”
Nasiru Yusuf Ibrahim
Isa Haladu, the director, Planning, Research and Statistics Office of the Kano State Ministry of Health, has emerged as the co-chairperson, representing the government in the Kano State Accountability Mechanism (KanSLAM).
KANO FOCUS reports In a letter signed by Pharm Maimuna Yakubu, the Co-chair (CSOs) to Haladu, “the DPRS is recognized as the automatic Co-chairperson of KanSLAM.
“As a key player in this process, the DPRS’ office co-chairmanship will play an instrumental role in ensuring success of this partnership,” she said.
While officially presenting the letter to Haladu on Saturday at a KanSLAM review meeting at Joclarif Hotel in Zaria, Safiyanu Bichi a member of KanSLAM stated that Haladu’s emergence as the govt. co-chair will bring more development and opportunities for the SLAM.
In his remarks, the newly appointed government co-chairperson expressed his delight for being part of KanSLAM.
He stated that immediately he received the notification letter via email, he shared it with the Kano Commissioner of Health Dr Labaran Yusuf.
“I fully accept this responsibility and I am optimistic that this will facilitate in continuing the good work that KanSLAM has done in the past,” he said.
Haladu recalled how the SLAM transformed from Accountability Mechanism for Maternal and Child Healthcare in Kano State (AMMKaS) to KanSLAM, stressing that the SLAM is now enlarged and much more effective.
He added: “KanSLAM has contributed in the establishment of Private Health Institutions Management Agency (PHIMA), Kano State Contributory Healthcare Management Agency (KSCHMA), and Kano State Health Trust Fund (KHETFUND) and I believe more achievements are on the way.”
KanSLAM is a coalition of Civil Society Organisations, Civil Servants and Journalists advocating for improved service delivery in human capital development sectors.
Nasiru Yusuf Ibrahim
The Executive Vice Chairman of Nigeria Communication Commission (NCC), Dr. Aminu Maida has joined the Board of Directors of TMT advocacy body of the International Institute of Communications(IIC).
KANO FOCUS reports that currently serving as the EVC/CEO at NCC, Dr Maida plays a pivotal role in shaping Nigeria’s telecommunications landscape. Under his leadership, the NCC continues to advance connectivity, foster innovation, and promote a competitive and inclusive telecommunications industry.
Dr Maida’s career includes significant contributions to leading global organizations such as British Telecom, Cisco Systems, and EE Ltd. He was also a pioneering engineering team member at UbiquiSys Ltd, a groundbreaking small-cell technology startup acquired by Cisco Systems in 2013.
Prior to his current role, Dr Maida was the Executive Director of Technology and Operations at the Nigeria Inter-Bank Settlement Systems PLC (NIBSS). There, he spearheaded the modernization of Nigeria’s central digital payments infrastructure, reinforcing its role as a critical enabler of the country’s financial ecosystem.
Dr Maida holds a Ph.D. in Electrical and Electronic Engineering from the University of Bath, an MEng in Information Systems Engineering from Imperial College London, and a Postgraduate Diploma in Entrepreneurship from the Cambridge Judge Business School.
••••Reaffirms Commitment to Press Freedom and Journalists’ Welfare
Kano State Governor, Alhaji Abba Kabir Yusuf, has congratulated Comrade Alhassan Yahaya on his election as the President of the Nigeria Union of Journalists (NUJ).
Comrade Yahaya emerged victorious at the 8th Triennial Delegates Conference held on Thursday in Owerri, Imo State.
In a statement issued by the governor’s spokesperson, Sunusi Bature Dawakin Tofa, Governor Yusuf described the election of Comrade Yahaya and his team as a reflection of the trust and confidence reposed in them by journalists nationwide.
He called on the new leadership to promote inclusiveness, maintain the ethical standards of journalism, and focus on capacity-building initiatives to align with global best practices.
The governor emphasized the critical role of a free press as the Fourth Estate of the Realm in safeguarding democracy and advancing societal development.
He reiterated Kano State’s commitment to ensuring the welfare and safety of journalists, recognizing their vital contributions to informing and educating the public.
Governor Yusuf expressed optimism that the new NUJ leadership would steer the union toward transformative achievements that would strengthen the media industry for the benefit of the nation.
He also pledged his administration’s support in fostering a thriving and independent press.
The Kano State Government wished the new NUJ leadership a successful tenure filled with impactful milestones for the media professional.
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