NCC Reports $76 Billion Telecoms Investments and 60,000 5G Subscriptions

• Published On: 06 July 2023 at 16:13

The Nigerian Communications Commission's Executive Vice Chairman, Prof. Umar Danbatta, has revealed that investments in the telecommunication sector reached a total of $75.6 billion by the end of 2021. He disclosed this information during an interactive session with stakeholders in the communications media ecosystem held in Lagos on Wednesday.

According to Prof. Danbatta, this investment amount includes both foreign direct investment and local investment recorded in 2021. Additionally, he shared that 5G subscriptions have experienced significant growth, surpassing 60,000 subscriptions in numerous cities across 12 states of the federation.

 The Vice Chairman further explained the progression of investments in the sector over the years. In 2018, the investment profile stood at $68 billion, which then increased to $70.5 billion in 2019 and $72 billion in 2020. By the close of 2021, the investment figure had risen to $75.56 billion. He emphasized that the telecoms sector's investment calculation considers data from two sources: the Central Bank of Nigeria and financial information obtained from service providers by the commission.

 According to Danbatta, the investment profile of the sector has experienced remarkable growth since its initial investment of $500 million in 2001.

 Regarding the sector's contribution to the GDP in 2022 and 2023, he stated, "During the first quarter, the telecom sector contributed 12.94 percent, equivalent to N2.25 trillion. The second quarter witnessed an unprecedented high GDP contribution of 15 percent, valued at N2.59 trillion, bolstering the nation's economy."

 He further mentioned that the sector's contribution to GDP in the third quarter was 12.85 percent, while in the fourth quarter, it grew to 13.55 percent, with respective values of N2.44 trillion and N2.85 trillion.