Professor Umar Dambatta, EVC Deputy Chairman, Chief Executive Officer and Chief Executive Officer of the Nigerian Communications Commission NCC, said the telecommunications sector's contribution to the country's Gross Domestic Product (GDP) is projected to reach 2023 in the second quarter of 2023. said it would increase significantly to 16 cents. .
The EVC cited data reported by the NCC based on calculations by the Nigerian Bureau of Statistics (NBS).
Dambatta made the statement Thursday during a keynote address at the annual Telecommunications Executives and Regulators Forum (TERF) hosted by the Telecommunications Companies Association of Nigeria (ATCON) in Lagos.
According to EVC, the telecommunications sector contributed 16 percent to domestic GDP, following a 14.13 percent contribution in the first quarter of 2023, surpassing the previous record of 15 percent in the second quarter of 2022. GDP is expected to reach a new record. In the second quarter of 2023.
Mr. Dambatta will speak on the theme of "Success Factors and Obstacles to the National Broadband and Digital Economy Goals" to an audience of up-and-coming leaders from telecommunications companies and other industry players about the significant progress the Commission has made. guided.
From about 8 per cent contribution to GDP in 2015, when Danbatta came on board as the EVC of NCC, he said quarterly GDP has increased significantly to reach its current threshold of 16 per cent and that this has continued to positively impact all aspects of the economy.
“Through sustained regulatory excellence and operational efficiency by the Commission, the industry has grown in leaps and bounds over the past two decades and this has impacted on all other sectors of the economy. The effective regulatory regime emplaced by the NCC and with the support from all stakeholders has been our major success factor as an industry,” Danbatta said.
The EVC stated that while there are barriers to broadband deployment in the country, ranging from the issue of right of way (RoW), fibre cuts, high capital requirement for deployment, multiple taxations and regulations, among other challenges, the NCC is navigating regulatory complexities, digital divide and literacy, security concerns with firmness and increased collaborations with necessary stakeholders such as ATCON to create measures towards tackling the challenges.
On the RoW challenge, the EVC said there are about 46 different taxes directed at the telecom sector at the moment. Such charges and amounts go by a variety of names and are imposed on telecommunications carriers by some government agencies and government levels, particularly at the state and local levels. Dambatta said the challenge has created a huge financial burden for domestic telecommunications subscribers.
On the topic of connectivity, Dambatta said: “Over the years, we have seen some clusters of access gaps across the country, but as we continue to drive efforts to improve access to telecommunications services, the number of access gaps has decreased significantly.
He stated that the Commission does this by enlisting government commitment to a digital economy with robust policy frameworks, promotion of investment and funding, stimulation of infrastructure development, digital inclusion and literacy, promotion of competition and market liberalization, effective allocation of spectrum, as well as driving the e-government ecosystem.
Danbatta said with various ongoing regulatory efforts, “The NCC is confident that we are going to reach 50 per cent broadband penetration threshold by the end of 2023 and by 2025, we would have met and possibly surpassed the 70 per cent broadband penetration target, as contained in the Nigerian National Broadband Plan (NNBP), 2020-2025.”
The EVC particularly commended ATCON and its members for being partners in progress and for constantly engaging the Commission in constructive ways towards finding solutions to the myriad of challenges confronting the industry. The EVC said a national broadband network and a thriving digital economy are not without their challenges.
“However, these challenges can be overcome through determination, innovation, and strategic planning. By focusing on the success factors and addressing the barriers, we can create a future where every Nigerian have access to the opportunities that the digital world offers,” he added. Dambatta also said that the country's success in digital initiatives lies not only in technological advances, but in transforming lives, driving economic growth and keeping the country competitive on the global stage.
“As we embark on this journey together, I urge all stakeholders, both public and private, to continue their commitment to building a better and more connected future for this country,” he said.