Telecoms investment in Nigeria hits $75.6bn, says Danbatta

The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, has officially announced that the investment in Nigeria’s telecommunications sector, including foreign direct investment (FDI) and local investment, has reached $75.6 billion as of 2021.

Telescope.ng reports that this announcement was made during an interactive session with stakeholders in the communications media ecosystem in Lagos on Wednesday.

Danbatta provided a breakdown of the investment profile, stating that in 2018, the sector’s investment stood at $68 billion, which increased to $70.5 billion in 2019 and $72 billion in 2020.

According to him, by the end of 2021, the figure rose to $75.6 billion, adding that “these figures were obtained from the Central Bank of Nigeria (CBN) and the financial data collected from service providers by the Commission.”

The NCC CEO highlighted the significant growth of the telecom sector since its full liberalization in 2001, starting with an initial investment of $500 million.

He also emphasized the sector’s contribution to Nigeria’s economy, with the telecoms sector adding N10.126 trillion to the nation’s GDP in 2022 alone.

Citing data from the National Bureau of Statistics (NBS), Danbatta explained that the sector’s contribution to GDP varied throughout the quarters of 2022, with percentages ranging from 12.85% to 15%.

He said in the first quarter of 2023, the telecom sector contributed 14.13% to the nation’s GDP, amounting to N2.508 trillion.

Danbatta commended the growth of the sector since he assumed the role of EVC in 2015, with the telecom’s contribution to national GDP steadily increasing over the years.

He emphasized that the sector has become a major driver of economic development in Nigeria, impacting various aspects of the economy.

Danbatta highlighted the growth in voice and internet subscriptions, as well as the increasing penetration of broadband services in the country. He also mentioned the deployment of 5G networks in Nigeria and the growing number of 5G subscriptions.

Danbatta assured stakeholders of the Commission’s commitment to creating a favourable investment climate and enhancing value for telecom consumers, in line with the government’s policies focused on the ease of doing business and digital economy development.

The EVC expressed his appreciation to the media for their partnership and role in promoting accurate reporting of the Commission’s regulatory activities.