The Nigerian Communications Commission (NCC), the telecoms industry regulator, has predicted that the telecoms sector’s contribution to the Gross Domestic Product (GDP) of the country will surpass 25 percent by 2025.
The NCC made the predictions based on the rapid growth of the telecoms sector and the rising subscriber growth of over 150 million and a teledensity of 107.67 per cent as at July this year.
Prof. Umar Danbatta, Executive Vice Chairman of NCC, made the projection at the Nigeria Telecom Impact CEO Forum in Lagos, weekend, organised by ICT Watch Network to discuss how telecom could contribute 25 percent GDP to the Nigerian economy by 2025.
Represented by the Director of Public Affairs at NCC, Mr. Tony Ojobo, Danbatta said: “It is well known that Nigeria’s telecom sector is one of the fastest growing in the world. Telecommunications is obviously leading as the aggregate Foreign Direct Investments (FDI) from 2007 to 2013, and ranked as a contributor of 24 per cent of such projects. Between 2011 and 2013, telecommunications sector attracted about $6 billion worth of investments which has accelerated information and communications technology (ICT) contributions to an estimated 10 percent, translating to some $50 billion.”
He noted that with the current contribution estimated at 10 percent, an additional 15 percent must be achieved over the next ten years in order to reach the target of 25 percent by 2025.
To surpass the 25 per cent contribution to GDP by 2025, Danbatta said a a strategic plan was already in place, which projects achievement of 30 percent of broadband penetration by 2018.
“I am confident of this projection because broadband will energise the sector and the economy. Most of the activities in the industry will be e-driven. Digital warriors who will drive local content will emerge, and formal and informal employments would be created. Commerce will thrive more on the digital space. Education and health sectors will receive a boost and governance will even come closer to the citizenry as government and its agencies will begin to run on complete e-platforms,” Danbatta said.