Thursday , October 21 2021

GDP fall: ALTON tasks FG on friendly policies to attract Foreign Investment



To address the decline in telecommunications contribution to Nigeria’s Gross Domestic Product (GDP) in Q3 2019, stakeholders has tasked Federal Government on making friendly policies that will attract more Foreign Direct Investment (FDI).

They maintained that lesser FDI and activities of Over-the-Top  (OTT) services are largely responsible for the fall in GDP contribution.

Recall Business Remarks reported that the latest industry statistics released by Nigerian Communications Commission (NCC) revealed the sector contribution to the nations’ GDP decline by 2.19%.

In the third quarter of the year 2019, the data shows telecom sector contributed 9.20% as against the 11.39% recorded for the second quarter of the same year.

Speaking exclusively with our correspondent on this, the President, Association of Licensed Telecommunications Companies of Nigeria (ALTON), Engr Gbenga Adebayo stressed that the decline revealed that sector is beginning to attract lesser Foreign Investment.

In his words, Adebayo said “the data means there are not much Foreign Direct Investment (FDI) as we use to have and the industry is not as rosy as it’s being reported. This is something we need to watch very closely”.

He also noted that another factor could be the activities of Over-the- Top technology (OTT) in the industry.

ALSO RELATED: Telecoms industry contribution to GDP decline by 2.19% in Q3 2019

“It is possible the traffic pattern is reducing because of the incursion of Over-the- Top technology (OTT). The conventional services are being eroded by OTT, that is the bottom line of the operators. This is also affecting the industry earnings.

“The decline is a combination of many factors and the industry is need of lots of support.

While calling on Federal Government to create more investor’s friendly policies, Adebayo said without the right policy environment, it will be difficult to attract these investment.

According to him, it is important for the industry have to be free investor’s friendly.

“We need the investment to optimise technology and deplore more solutions.

“Without the right policy environment, it will be difficult to attract these investment. We must continue to reduce and eliminate the barriers to market entry both for old and new players.

For me, this is a signal that the industry is not as healthy as it use to be or suppose to be. We can do better. The decline depicts that the industry is not as rosy as it’s being reported,” he averred.


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