NCC Boss: Telecom sector's GDP contribution soars to 16% in Nigeria
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NCC Boss: Telecom sector’s GDP contribution soars to 16% in Nigeria

The Executive Vice Chairman and Chief Executive Officer (EVC/CEO) of the Nigerian Communications Commission (NCC), Prof Umar Danbatta, announced that the telecommunications sector’s contribution to the nation’s Gross Domestic Product (GDP) surged to 16 percent in the second quarter of 2023.

The EVC referenced data from the NCC, as computed by the Nigeria Bureau of Statistics (NBS), during his keynote address at the annual Telecom Executives and Regulators Forum (TERF) hosted by the Association of Telecom Companies of Nigeria (ATCON) in Lagos.

He highlighted that this contribution marked a significant increase from the 14.13 percent in the first quarter of 2023 and exceeded the previous all-time-high record of 15 percent recorded in the second quarter of 2022.

This growth underscores the telecommunications sector’s pivotal role in the Nigerian economy.

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Danbatta explained that the NCC’s effective regulatory framework, operational efficiency, and collaborative efforts with stakeholders have driven this progress.

While acknowledging challenges such as right of way (RoW) issues, fiber cuts, high capital requirements, multiple taxes, and regulations, the NCC is actively working to address them.

In particular, he mentioned that there are currently around 46 different taxes levied on the telecom sector, leading to increased costs for subscribers.

However, the NCC is committed to achieving its broadband penetration goals, targeting 50 percent by the end of 2023 and possibly exceeding the 70 percent target by 2025 as outlined in the Nigerian National Broadband Plan (NNBP), 2020-2025.

Danbatta praised ATCON and its members for their constructive engagement with the Commission, emphasizing that building a national broadband network and thriving digital economy requires overcoming challenges through determination, innovation, and strategic planning.

He underscored that the success of Nigeria’s digital aspirations is not just about technological advancements but also about improving lives, driving economic growth, and maintaining global competitiveness.