Inflow from telecoms investment grows to $77 billion in Q2, 2023

Investments in the telecoms industry grew from $38 billion to $77 billion by the second quarter of 2023 (Q2, 2023) indicating a 16% contribution to Nigeria’s Gross Domestic Product (GDP).

This was disclosed by the Executive Vice Chairman and Chief Executive Officer (VC/CEO) of the Nigerian Communications Commission (NCC), Professor Umar Danbatta during a media parley held in Kano.

“With about 8% contribution to GDP in 2015 when we came on board as the EVC of NCC, quarterly GDP has increased significantly to reach its current threshold of 16%, and this has continued to positively impact all aspects of the economy.”

“Through sustained regulatory excellence and operational efficiency by the commission, the industry has grown in leaps and bounds over the past two decades. We have witnessed explosive growth, improved regulatory standards and digital innovation that have generated global recognition.” Dambatta said.

In terms of financial value contribution, the Nigerian telecoms sector’s contribution to the nation’s GDP stood at ₦2.508 trillion in Q1, 2023 representing 14.13% of the total contribution.

According to figures released by the National Bureau of Statistics (NBS), there was a 4.3% increase recorded by the industry when compared with the performance in Q4, 2022, when it recorded 13.55%.

On a year-on-year basis, there was a positive growth of 9.9% from the 12.94% recorded in Q1, 2022 when compared to the same review period in 2023 which recorded a GDP contribution of 14.13%.

While assuring Nigerians of the commission’s resolve to tackle challenges and navigate regulatory complications in the industry, Dambatta listed several issues which includes Right of Way (RoW), fibre cuts, high capital requirement for deployment, multiple taxation and regulations, among other frustrations, currently constituting hurdles to the deployment of broadband technology in the country.