NCC raises bar further high as telecom sector drives Nigeria’s GDP growth

By Odunewu Olusegun

Nigeria’s telecommunications industry, regulated by the Nigerian Communications Commission (NCC), is one of the sectors whose performance contributed immensely to Nigeria’s GDP growth in the first quarter of 2022.

In the latest statistics released by the National Bureau of Statistics (NBS), the sector raised the bar further high, with a stellar 14.5% year-on-year growth in real terms.

The telecommunication sector, which is a component of the broader ICT sector grew significantly to N2.25 trillion in Q1 2022 from N1.96 trillion recorded in the corresponding period of 2021.

Notably, the Nigerian telecommunications sector grew by N284.45 billion year-on-year from N1.96 trillion to N2.25 trillion, indicating that the sector contributed about 54% to the N522.49 billion growth recorded in the Nigerian economy in the period under review.

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Also, on the back of the banking, aviation, and rail transportation sectors, the telecommunications sector ranks one the best performing sectors in the review period.

A look at the annual reports of the two listed telecom companies in the country showed commendable improvement in different metrics. For example, Airtel Nigeria grew their customer base by 5.8% to over 44.4 million while MTN Nigeria’s mobile subscribers hit 68.5 million with its 4G population coverage rising to 70.3% in 2021.

The telcos have also been involved in expanding their operations beyond just voice and data, they are increasing their presence in value-added services in the financial technology space, thanks to the NCC’s enabling policies over the years that has made the sector expand its scope.

The two listed telco giants posted impressive results in their finances in the first quarter of 2022.

A look at the two companies’ performance on the equities market also shows impressive returns, with both companies belonging to the most capitalized listed firms in Nigeria. As of the end of trading activities on Monday, 23rd May 2022, both companies are worth over N10.59 trillion.

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The steady growth of the telecoms sector over the years with its pervasive positive impact on all other sectors of the economy in terms of increased automation of processes and digital transformation in service delivery has been remarkable.

The growth trend since 2015 has reawakened hope that the economic diversification dreams of the country may finally be a reality as the sector continues to energize significant economic activities in the services sector of the economy.

Through an effective regulatory regime employed by the Commission, under the leadership of its Executive Vice Chairman (EVC), Prof. Umar Garba Danbatta, telecoms investment grew from about $38 billion in 2015 to over $70 billion currently.

The Commission is committed to its culture of quality regulation of the telecommunications industry that ensures a stable and robust sector which drives the digital economy agenda of the Federal Government and ultimately leads in the growth of the country’s GDP.