With N2.3 trillion or 14.30 per cent Gross Domestic Product (GDP) contribution in the second quarter of 2020, Nigeria’s telecommunications and information technology sectors remain the enablers of the country’s growth, even in the face of the global COVID-19 pandemic.
A recent report by The Guardian showed that the sector’s contribution to Nigeria’s GDP translates to N2.272 trillion, rising from N1.821 trillion in the first quarter of the year, and showing an increase of 31.43 per cent according to figures released by the National Bureau of Statistics (NBS).
Whereas the entire Information and Communication Technology (ICT) industry recorded 17.83 per cent in the second quarter, the 14.30 per cent contribution of the telecoms sub-sector was unprecedented, far and above oil and gas, and other non-oil sectors’.
The Guardian investigations further showed that in 2015, telecoms’ contribution to GDP stood at eight per cent and has grown significantly quarter-on-quarter and year-on-year to reach the current milestone of 14.30 per cent.
Stakeholders in Nigeria’s ICT industry attributed the second quarter contribution of the telecoms sector, a leap from the 10.88 per cent in Q1 2020, to the sound regulatory environment provided by the Nigerian Communications Commission (NCC).
Notable stakeholders such as the Association of Telecoms Companies of Nigeria, (ATCON), Association of Licensed Telecoms Operators (ALTON), and the National Association of Telecoms Subscribers (NATCOMS), who spoke with The Guardian on the matter, commended the regulatory framework driving the digital frontiers in the last five years.
Engr. Gbenga Adebayo, the ALTON Chairman, who thanked all industry players for their resilience and consistency of purpose, hinged the growth on so many factors including the investor-friendly policy and regulatory environment championed by the leadership of NCC, the commitment of all stakeholders, consistent investment in network maintenance and expansion, and sacrifice by sector operators.
Adebayo noted that to sustain this growth, the country should continue to invest in network expansion and maintenance operations, access to foreign exchange to procure network critical equipment, consistency in policy and policy environment.
He said there should be access to spectrum and friendly policies around its allocation, assignment and cooperation between the stakeholders.
Olusola Teniola, the ATCON President declared that the “telecoms industry has remained bullish owing to the quality of leadership at the helm of affairs at the Commission,” adding that the NCC had become a reference point in telecom regulatory ecosystem in Africa and beyond.
President of National Association of Telecoms Subscribers of Nigeria (NATCOMS), Adeolu Ogunbajo, in the same vein, said the proactive regulatory approach of Danbatta has helped made telecoms Nigeria’s economic engine room.
“Danbatta’s proactive approach has made the telecoms industry the oxygen that keeps economic activities afloat during the lockdowns and consumers are appreciative of the fact that the Commission, working with its supervising Ministry, didn’t allow the consumer to suffer serious disruption to quality of service and quality of experience,” he told The Guardian.
The Guardian reported that further checks it carried showed that effective regulatory regime, backed by various initiatives of the Commission and efforts of the supervising Ministry of Communications and Digital Economy at addressing industry challenges, is providing the needed digital valves that have supported the economy from collapse, since the outbreak of COVID-19 pandemic in the country.
A number of factors like the increase in broadband penetration, Internet usage, number of access to telephone and several other initiatives by the Commission, especially in the areas of driving tech innovations, employment creation, promotion of digital inclusiveness, which are policy directions of NCC, has, in the last five years, boosted the sector’s contribution to GDP.
These policy activities have also enhanced the growth of digital-based activities across other sectors of the economy increasing efficiency and effectiveness in economic operations.
At the Commission’s first virtual telecoms consumer parliament (VTCP), the Executive Vice Chairman of NCC, Prof. Umar Garba Danbatta, noted that the NCC has always been innovative and proactive in its regulatory activities by ensuring that the economy remains afloat despite the restrictions occasioned by the pandemic.
Danbatta had listed critical regulatory actions that have been taken by the Commission to mitigate the impact of the COVID-19 pandemic on quality of service (QoS) delivery by the networks to telecom consumers.
The EVC said the NCC, in conjunction with the supervising Ministry, developed e-platforms to handle all requests from the licensees to ensure that regulatory services are provided to sustain service delivery to subscribers.
He said the Commission also approved and encouraged resource sharing among network operators and secured Right of Passage (RoP) for all telecommunications companies and suppliers for easy movement during the lockdown.
These measures enabled the operators to service their base stations and ensured seamless services for telecom consumers who increasingly relied on the networks during the pandemic.
Danbatta further stated that the NCC, working with the ministry is resolving the problem of the high cost of Right of Way (RoW) with the Nigerian Governors Forum (NGF).
“The Commission is hopeful that with the reduction in RoW, which will automatically result in a reduction in capital expenditure (CAPEX) by the network operators, telecom companies will sooner than later reciprocate the gesture by making their services more affordable to Nigerians,” he said.
According to Danbatta, regulatory efforts have also resulted in a Presidential approval directing Security Agencies to protect Information and Communication Technology (ICT) and telecom facilities as critical national assets.
He said this has helped to safeguard telecom infrastructure for the greater role telecom has to play with the outbreak of Covid-19 pandemic.