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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
A former Governor of Kano State Dr. Rabiu Musa Kwankwaso, has commended the Inspector-General of Police, Olatunji Disu, for ordering a fresh investigation into the disappearance of activist and lecturer Abubakar Idris Dadiyata.
KANO FOCUS reports that Kwankwaso made the remarks in a statement posted on his Facebook page on Saturday following recent testimony by a former aide to an ex-state governor, who allegedly claimed that police officers were responsible for Dadiyata’s disappearance in Kaduna.
Dadiyata, a lecturer and social media commentator, was abducted in 2019, and his whereabouts have remained unknown since then.
According to Kwankwaso, he and his associates have consistently advocated for a thorough investigation into the incident and for those responsible to be brought to justice.
He described the Inspector-General’s directive for a comprehensive investigation as a “decisive and long-overdue action,” expressing hope that the process would uncover the truth behind the disappearance.
The former governor also urged police authorities to place individuals named in the allegations under close surveillance to prevent interference with the investigation.
Kwankwaso further called on the government to ensure that Dadiyata, if found alive, and his family receive adequate compensation for the trauma and hardship they have endured over the years.
He commended members of the public for sustaining advocacy efforts on the case and also praised Abba Hikima Fagge for what he described as his important role in the latest developments surrounding the investigation.
Kwankwaso expressed optimism that the renewed probe would ultimately deliver truth and justice in the case.
Nasiru Yusuf Ibrahim
The Director General of the Telecommunications Regulatory Board (ART) of the Republic of Cameroon, Philemon Zoo Zame, on Wednesday visited the headquarters of the [Nigerian Communications Commission (NCC) in Abuja for a benchmarking exercise aimed at strengthening regulatory collaboration and knowledge sharing between both countries.
KANO FOCUS reports that during the visit, the Cameroonian telecom regulator met with the Executive Vice Chairman and Chief Executive Officer of NCC, Aminu Maida.
A statement issued by Ayiabari A. Kigbara, Manager, Media Relations, Public Affairs Department of the NCC, said the engagement focused on exchanging ideas and best practices in telecommunications regulation, with emphasis on enhancing efficiency and development within the sector.
Nasiru Yusuf Ibrahim
Dangote Petroleum Refinery and Petrochemicals Limited has announced that its ex-depot price of Premium Motor Spirit (PMS) remains unchanged, reaffirming its commitment to stability in Nigeria’s domestic energy market.
In a statement issued by Esan Sunday, Head of Media Relations, Branding and Communication, the company said sustaining the current price reflects its efforts to cushion the broader economy against external shocks. It noted that by absorbing prevailing cost pressures, the refinery is helping to moderate inflationary risks, promote energy affordability, and ensure uninterrupted fuel supply amid ongoing global uncertainties.
The company reiterated its dedication to the steady supply of high-quality petroleum products to the Nigerian market, while aligning with national objectives of price stability and energy security.
It also urged the public to rely solely on official communications from the refinery for accurate and up-to-date information regarding its operations and pricing.
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