Total investments into the telecommunication sector rose to $75.6 billion as of the end of 2021, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta, has disclosed.
According to him, this comprises foreign direct investment and local investment as of 2021. He stated this at an interactive session with stakeholders in the communications media ecosystem, in Lagos on Wednesday.
He also revealed that 5G subscriptions have grown to over 60,000 subscriptions in many cities across 12 states of the federation.
He explained that in 2018, the investment profile in the sector stood at $68 billion, then increased to $70.5 billion in 2019, and $72 billion in 2020. He noted that at the end of 2021, the figure rose to $75.56 billion. he noted that investment in the telecoms sector is computed from two sources: the Central Bank of Nigeria, and the financial data obtained from service providers by the NCC.
Danbatta said the sector’s investment profile has recorded tremendous growth from its initial investment profile of $500 million as of 2001.
On the sector’s contribution to GDP in 2022 and 2023, Danbatta said: “In the first quarter, the sector contributed 12.94 per cent equivalent to N2.25 trillion while the second quarter witnessed an all-time high GDP contribution by the telecom sector to the nation’s economy, standing at 15 per cent and valued at N2.59 trillion.
“The sector’s contribution to GDP in the third was 12.85 per cent and in the fourth quarter, it grew to 13.55 per cent, which are valued at N2.44 trillion and N2.85 trillion respectively.
“The growth trajectory continued this year as telecommunications and Information Services sector in Nigeria delivered a handsome N2.51trillion in terms of financial value contribution to the nation’s gross domestic product, GDP, representing 14.13 per cent in the first quarter 2023″, he said.
