Why Nigeria’s Telecom Sector Tops List of Contributors to Socio-Economic Growth – Danbatta

The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta has restated the importance of the telecoms sector and its achievements in Nigeria’s socio-economic growth.

Danbatta who disclosed this at the second edition of the Nigerian Telecommunication Indigenous, NTICE Expo 2023 in Lagos said Nigerian Telecoms Sector is among the biggest contributors to the socio-economic growth of the country, as evidenced by the numerous achievements of the sector.

In his presentation, Danbatta, who was represented by the Executive Commissioner, Technical Services, NCC, Ubale Maska said “It is not out of place to mention that the sector’s performance was instrumental to lifting Nigeria out of recession with 12.45 per cent contribution to the GDP in Q4 2020.

While speaking on the sector’s achievements he said:

“This figure increased to 14.13 per cent as of Q1 2023. The sector is also home to two of the most valuable listed companies in Nigeria with a collective market capitalisation over N10.45 trillion.”

The Commission in 2021 and 2022, generated revenue of over $820 million from the auction of 3.5GHz spectrum band licenses to three operators to boost the deployment of fifth-generation, 5G, services in Nigeria.

Speaking further, he noted that one year after the ban on the importation of whole-body SIM cards, the local SIM card manufacturing market is now valued at N55 billion.

The NCC Boss explained that the ban has not only eased the burden on the sector’s demand for foreign exchange but has also created a business of over N55 billion for the local SIM card manufacturers in Nigeria which in turn has led to the emergence of direct and indirect jobs in the sector.

Danbatta said: “It is also important to note that while quality of service and quality of experience in telecommunications services in Nigeria has continued to improve, tariff has remained stable notwithstanding the increase in cost-of-service provision to the telecom operators.

“To sustain and further improve quality of service and quality of experience in telecommunications services in Nigeria, we must embrace indigenous content and value creation within the telecoms value chain, otherwise, an increase in telecoms tariff will be inevitable.

“Nigeria with its rich history of innovation, resilience and creativity as well as our diverse culture, talents, and perspectives has birthed solutions that uniquely cater for our challenges and aspirations.

“The NTICE 2023 platform is a celebration of these achievements, a testament to the Nigerian spirit of ingenuity.” Danbatta posited that NTICE is not only an exhibition but also a gathering of industry players that embodies the spirit of innovation, resilience, collaboration, and progress.

He said: “The Commission is fully committed to the drive of the Federal Government to place the Nigerian Economy on a sustainable pedestal through all the necessary policies put in place.

“When we created the Nigeria Office for Development of Indigenous Telecoms Sector, NODITS as a Special Purpose Vehicle under the Commission to drive the National Policy for Promotion of Indigenous Content in the Nigerian Telecommunications Sector in July 2021, the Office was given four areas of focus: Manufacturing, Human Capacity, Research & Development (R&D) and Software & Services development for the telecoms sector,” he explained.