Telecoms Contributes N1.4trn to Nigeria’s GDP in 1st Quarter of 2016 – Danbatta

Mon, Jul 18, 2016
By publisher
4 MIN READ

BREAKING NEWS, Business

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PROFESSOR Umar Danbatta, executive vice chairman and chief executive office of the Nigerian Communications Commission, NCC, is happy with the performance of the telecommunications sector in Nigeria. This is because the sector contributed a whopping N1.4 trillion to the country’s GDP in the first quarter of 2016 alone.

According to Danbatta, “in a period where Africa is burdened by poverty and debts, telecommunications has become one of the key sources of improving the GDP of the African economies.” Currently, Telecom and ICT contributes up to 10 percent of Nigeria’s GDP. “Just three days ago, I mentioned to the Governor of Kano State, Umar Ganduje during a courtesy call, that the recent report of the National Bureau of Statistics, NBS, has put the contributions of the telecommunications sector to the GDP at N1.4 Trillion in the first quarter of 2016,” he said.

Danbatta stated this at the 12th Nigerian Telecom Lecture and Awards, 2016 in Lagos, at the weekend, saying: “This is a positive indication that more investments, more deployments and more economic activities around the sector will continue to impact positively in the sector. However, it was good reason for various agencies of government, and governments at all levels in Africa, to show greater understanding and support for to the quest by various regulators in Africa to improve the telecommunications environment.”

“I will not fail to mention the global expectations of the impacts of broadband and efforts by various countries to achieve fast deployment of broadband infrastructure. We all know that Broadband is an enabler of other economic and human activities. The World Bank and the International Telecommunications Union, ITU, have made recommendations about broadband that cannot be ignored by any progressive telecom regulator.

“The Broadband Commission, while emphasizing the importance of broadband for future economic development of every nation, referred to the World Bank research that indicates that, “for high-income countries, a 10-percentage-point rise in broadband penetration adds a 1.21-percentage point rise in economic growth – or an added 1.38 percentage points for low- and middle-income countries. This is more than any other type of communication service”.

“This is one of the reasons why broadband is on the top of the 8-Point Agenda of the Nigerian Communications Commission under my leadership. I believe that many African countries are giving serious thoughts and actions towards the provision of broadband to make it available, accessible and affordable for the citizens of the continent, and in the process, impact positively to their national economies.

“In Nigeria, our target is already set for 30 per cent penetration in 2018, against the current 10 per cent penetration across the country. We have already outlined our plans, which include the licensing of fibre infrastructure providers in the remaining five geopolitical zones of South West, South East, South South, North West, and NorthEast. Two companies are already licensed for North Central and Lagos, which is considered a zone on its own right as the commercial capital of this country with huge demands for telecom services. We have successfully sold some slots of frequencies in the 2.6GHz Spectrum Band, and will continue to commit efforts towards efficient management of resources to achieve the various targets expanding the frontiers of broadband and improving the telecom sector.

“Africa is still very promising for investments. Telecom investors have huge opportunities to explore the African continent, which still has huge potentials for returns on investment. The developed parts of the world are almost saturated with different types of telecom services. Therefore, Africa stands a chance to make desirable impact in the next few years if we get our plans right. Therefore, this is another opportunity to advice fellow regulators that we need to keep our eyes on the ball for the benefit of the continent’s faster development,” he said.

—  Jul 18, 2016 @ 19:25 GMT

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