BREAKING NEWS, Business
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The Nigerian Communications Commission predicts that the telecommunications sector will contribute more than 25 percent to the country’s GDP by 2025
| By Anayo Ezugwu | Nov 16, 2015 @ 01:00 GMT |
THE Nigerian Communications Commission, NCC, has predicted that the telecoms sector’s contribution to the Gross Domestic Product, GDP, in the country will surpass 25 percent by 2025. The NCC made the predictions based on the rapid growth of the telecoms sector and the rising subscriber growth of over 150 million and a teledensity of 107.67 percent as at July this year.
Umar Danbatta, executive vice chairman, NCC, made the projection at the Nigeria Telecom Impact CEO Forum in Lagos, organised by ICT Watch Network to discuss how telecom could contribute 25 percent GDP to the Nigerian economy by 2025. It is a well-known fact that Nigeria’s telecom sector is one of the fastest growing in the world. “Telecommunications is obviously leading as the aggregate Foreign Direct Investments, FDI, from 2007 to 2013, and ranked as a contributor of 24 per cent of such projects. Between 2011 and 2013, telecommunications sector attracted about $6 billion worth of investments which has accelerated information and communications technology, ICT, contributions to an estimated 10 per cent, translating to some $50 billion.
“It is the position of the regulator to accurately make a long-term prediction of what the sector of a hugely diverse economy like Nigeria would be in 10 years. It is also appropriate to make a prediction where other sectors of the economy are intensely competing to contribute. The role of the telecom regulator is to continue to provide the type of environment that will continue to encourage investment and growth. There is no doubt that this is the reason for the exponential growth in active subscriber statistics of more than 150 million lines and teledensity of 107 percent. This is not comparable with less than 500,000 lines in 2001. It is not by accident that more than 80 million Nigerians have access to the Internet today. These are products of robust regulatory processes,” Danbatta said.
According to him, the telecom regulator is desirous of the ICT sector contributing even more than 25 percent to GDP by 2025. He said at the current contribution estimated at 10 percent, this implies achieving additional 15 percent over the next ten years. This is by no means a very tall order, given what the country has said about the competition in sectors of the economy, which is for the good of the nation in the long run.
He, however, said that any consideration of achieving such a feat must also give consideration to putting a robust plan, with long, medium and short-term measures to attract and sustain investments. In the ICT sector, it is all about investments. It could be investment in infrastructure, content, human capital, and supportive infrastructure availability, especially power as it relates to the sector.
To surpass the 25 percent contribution to GDP by 2025, Danbatta said a strategic plan was already in place, which projects achievement of 30 percent of broadband penetration by 2018. If this is achieved, he said it surely would fast track the contribution of the ICT sector to GDP and surpasses the 25 percent contribution to GDP. “I am confident of this projection because broadband will energise the sector and the economy. Most of the activities in the industry will be e-driven. Digital warriors who will drive local content will emerge, and formal and informal employments would be created. Commerce will thrive more on the digital space. Education and health sectors will receive a boost and governance will even come closer to the citizenry as government and its agencies will begin to run on complete e-platforms.”
On his part, Emeka Mba, director general, National Broadcasting Commission, NBC, who delivered a paper at the forum, called on Nigerians to embrace the internet in doing businesses, insisting that the future of broadcasting in Nigeria is the internet. With the internet, he said several contents that will sustain broadcasting will be developed.
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