Home Business Investment in Nigeria’s Telecoms Sector Hits $68.2 Billion-NCC

Investment in Nigeria’s Telecoms Sector Hits $68.2 Billion-NCC

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The Nigerian Communications Commission (NCC) has stated that investment in the telecommunication sector has increased to $68.2 billion from $50million in 2001.

The commission also said the secor has recorded its biggest contribution of 9.8 percent to the nation’s Gross Domestic Product in six years

Nigeria-NCC

These facts emerged from remarks by the NCC Executive Vice Chairman, Prof. Umar Garba Danbatta, and details from the National Bureau of Statistics (NBS).

At a meeting with 22 Defence Attaché and Advisors from different embassies, led by Commodore Aminu Hassan, Deputy Director of Foreign Liaison, Nigerian Defense Intelligence Agency, Danbatta said the development was due to the huge potentials and the resilient nature of the sector despite the present economic situation in the country.

He said the number of active GSM subscribers had increased from about 400,000 in 2002 to 150 million in 2016, stating that the commission had recently granted license to two infrastructures companies for the development of facilities in the North central and Lagos.

“Even with Nigeria going through recession which is now a global phenomenon with the exception of U.S, Iran and a few other countries, you can see that the telecom sector in Nigeria is resilient and with huge potentials for growth,” he said.

“In the first quarter of the year 2016 against all negative predictions, the telecom sector contributed about 1.4 trillion naira to the GDP and now in the second quarter of 2016, it has contributed over 1.6 trillion naira. This is a credible statistic from the National Bureau of Statistic.”

The NBS, in a report, also revealed that the sector contributed as much as N1.6 trillion to the nations GDP in the second quarter of 2016.

“In real terms, the telecommunications sector contributed N 1,580 billion to GDP in the second quarter of 2016, or 9.8%, which represents an increase of 1.0% points relative to the previous quarter,” the report read.

“This is the largest contribution to GDP made from this sector in the rebased period, which emphasises that growth in telecommunications has remained robust when compared to total GDP.

“However due to differing seasonal patterns, the contribution from telecommunications is usually the largest in the second quarter.

“The share of telecommunications in total real GDP had declined throughout 2010 to 2014, but for the last five quarters growth in telecommunications has been higher, meaning the trend has reversed.”

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