Says broadband penetration to hit 50% year ending
Executive Vice Chairman, Nigerian Communications Commission (NCC) Prof. Umar Danbatta on Thursday announced that the telecommunications sector’s contribution to the nation’s Gross Domestic Product (GDP) has increased significantly to 16 percent in the second quarter of 2023, according to data extracted from the computation of the Nigeria Bureau of Statistics (NBS).
The Director, Public Affairs Reuben Muoka in a statement reported that Prof. Danbatta made the disclosure in a keynote address at the annual Telecom Executives and Regulators Forum (TERF) hosted by the Association of Telecom Companies of Nigeria (ATCON) in Lagos on Thursday.
The Executive Vice Chairman said that from a 14.13 percent contribution in the first quarter of 2023 to a 15 percent all-time-high record contributed in the second quarter of 2022, the telecommunications sector added 16 percent to the national GDP in the second quarter of 2023 to set a new record.
Speaking on the theme: “Success Factors and Barriers to National Broadband and Digital Economy Aspirations”, he said that from about 8 percent contribution to GDP in 2015, quarterly GDP has increased significantly to reach its current threshold of 16 percent, which has positively impacted on 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 and this has impacted on all other sectors of the economy. The effective regulatory regime emplaced by the NCC and with the support from all stakeholders has been our major success factor as an industry,” Danbatta said.
The EVC stated that while there are barriers to broadband deployment in the country, ranging from the issue of right of way (RoW), fibre cuts, high capital requirement for deployment, multiple taxations and regulations, among other challenges, the NCC is navigating regulatory complexities, digital divide and literacy, security concerns with firmness and increased collaborations with necessary stakeholders such as ATCON to create measures towards tackling the challenges.
On connectivity, Danbatta said, “Over the years, we have identified some clusters of access gaps all over the country but we have recorded a significant drop in the number of access gaps, as we continue to drive initiatives that boost access to telecommunications services.”
He said that with various ongoing regulatory efforts, “The NCC is confident that we are going to reach 50 per cent broadband penetration threshold by the end of 2023 and by 2025, we would have met and possibly surpassed the 70 per cent broadband penetration target, as contained in the Nigerian National Broadband Plan (NNBP), 2020-2025.”
Danbatta commended ATCON and its members for being partners in progress and for constantly engaging the Commission in constructive ways towards finding solutions to the myriad of challenges confronting the industry.
The EVC said a national broadband network and a thriving digital economy are not without their challenges which can be overcome through determination, innovation, and strategic planning.
