NCC Strides In Telecom Sector Impacting Positively On Nigeria GDP Growth

The Nigerian Communications sector has witnessed a major increase in competition driven by the Government’s liberalization policies and the robust implementation of initiatives and policies over the years, which has stimulated the growth and development of the sector.

To date, the Nigerian Communications market is one of the biggest in Africa and is also the largest contributor to the Information and Communications Technology sector of the Nigerian economy.

The telecommunications and Information Services sector in Nigeria has, in the first quarter 2023, delivered a handsome N2.508 trillion in terms of financial value contribution to the nation’s gross domestic product (GDP), representing 14.13 per cent.

Figures released by the National Bureau of Statistics (NBS) showed that the sector recorded a 4.3 per cent   increase from its performance in the last quarter of 2022 when it recorded 13.55 per cent. When compared on a year-on-year basis, the growth showed a positive progression from 12.94 per cent in the first quarter of 2022, to the 2023 figure of 14.13, which is an approximate growth of 9.19 per cent.

The percentage of telecom contribution to GDP was calculated from 46 distinct sectors of the economy, which constitute telecom and information services baskets. The Nigerian telecom industry has continued its show of positive outlook, which is credited to the innovative and predictable telecom regulatory environment promoted, and implemented by the Nigerian Communications Commission (NCC).

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One of the key highlights of the telecom industry performance within the period was the generation of $820.8 million for the federal government from 5G spectrum licences fees paid by three eventual winning operators, MTN, MAFAB and Airtel.

Following the issuance of the licences in December 2021 to MTN and MAFAB, both companies have launched 5G services. Airtel, which received its licence in December 2022, is set to launch services this month, June 2023.

Another major development in the sector was the launch of Starlinks broadband services, a satellite-based wireless broadband services with potential nationwide coverage. This followed the issuance of licence to Elon Musk-owned SpaceX by the Commission. The services are now available in different parts of the country.

Meanwhile, the growth statistics of the telecom industry are showing an impressive record of contributions to the economy. The number of phone subscribers as at April 2023, stood at 223.6 million subscribers, scoring a teledensity of 117 per cent. Internet subscribers for the same period were 157 million while broadband subscriptions stood at 92 million, translating to 48 per cent broadband penetration in the country.

It is on the above success recorded by the commission that the Association of Public Procurement Practitioners of Nigeria (APPON) conferred on the Executive Vice Chairman and Chief Executive Officer of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta, with the “Excellent Service Delivery and Accountability Award”.

The award was in recognition of Danbatta’s outstanding performance and contribution to the canons of the public procurement profession in Nigeria by ensuring that the NCC complies strictly with the provisions of the Public Procurement Act (PPA) 2007.

He received the award at the 3rd Annual National Conference and Awards Ceremony organized by the APPON in Lagos recently. Danbatta was adjudged to have led an NCC that is transparent and open and compliant with the provisions of public procurement as enshrined in applicable laws of the land.

In his remark, APPON National President, Akparawa Kanico, congratulated the EVC for his remarkable leadership and ability to inspire everyone around him towards ensuring effective procurement process in the Commission.

He stated that the leadership finesse and administrative prowess of Danbatta have reflected in the impressive growth that the telecoms sector has witnessed in being an enabler of growth in other sectors of the economy and the national economy as a whole.

Responding, the Danbatta appreciated the organisers of the Awards for the recognition while describing it as ‘a great motivation to him and the Commission to be more transparent, open and process-driven in its procurement activities.’

Meanwhile, speaking on the topic: „Implementation of e-procurement in Nigeria: Prospects and Challenges“ at the event, Danbatta said broadband connectivity, being driven by the Federal Government, through the Commission, will enhance electronic procurement (e-procurement) that will ensure greater accountability and transparency in governance process in Nigeria.

He stressed that e-procurement was the way to go and that the Commission will continue to create the enabling environment required for e-procurement to thrive through NCC’s dedicated commitment to driving the attainment of ubiquitous broadband connectivity across Nigeria.

Danbatta said Nigeria‘s investment in broadband infrastructure is yielding substantial benefits for the country‘s e-procurement sector, revolutionizing the way businesses engage in procurement processes, especially Government-to-Business (G2B) and other e-government activities.

“With the new administration in the country making broadband connectivity an outstanding pillar in its policy thrust, the Commission would continue to focus on improving broadband infrastructure to change the landscape of procurement governance, and help to unlock new possibilities for businesses and public institutions.

“With improved Internet connectivity, businesses across the country now have faster and more reliable access to e-procurement platforms, enabling them submit proposals, monitor tender opportunities in real time, and participate in online bidding process,“ he said.

At the event, two members of staff of the Commission were inducted as APPON Fellows. They are Adejoke Atte, NCC‘s Head of Procurement Department and a Principal Manager in the department, Bernard Kwembeh.