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Telecoms Sector lifted the country out of recession in Q4 2020
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Telecoms Sector is home to 2 of the most valuable listed companies in Nigeria
Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta has described the Nigerian Telecoms Sector as amongst the biggest contributors to the socio-economic growth of the country.
He said this claim is evidenced by the numerous achievements of the sector including being instrumental in lifting the country out of recession with a 12.45% contribution to the GDP in Q4 2020, a figure that increased to 14.13% as of Q1 2023.
Danbatta spoke recently in Lagos at the 2023 Nigerian Telecommunications Indigenous Context Expo, themed: “Harnessing Indigenous Content for Economic Growth; Networking to Boost Investment,” where the telecom regulator brought stakeholders to discuss the issue of indigenous content development, skill gaps in the telecoms sector and other sundry issues.
Represented by Engr. Ubale Maska, NCC’s Executive Commissioner, Technical Services, Danbatta said the Sector is also home to two of the most valuable listed companies in Nigeria with a collective market capitalization in excess of N10.45 trillion.
“Recall also that the Commission in 2021 and 2022, generated revenue in excess of USD$820m from the auction and grant of 3.5GHz Spectrum band licenses to three operators to boost the deployment of Fifth Generation (5G) services in Nigeria. This placed Nigeria on the global 5G map ahead of many countries in Europe, Africa and the Middle East.
“It is also important to note that while Quality of Service and Quality of Experience in telecommunications services in Nigeria have continued to improve, tariffs have remained stable notwithstanding the increase in cost-of-service provision to the telecom operators,” he said.
Danbatta argued that in order to sustain and further improve the Quality of Service and Quality of Experience in telecommunications services in Nigeria, the country must embrace indigenous content and value creation within the telecoms value chain, otherwise, an increase in telecoms tariff will be inevitable.
He assured of the Commission’s full commitment to the drive of the Federal Government to place the Nigerian Economy on a sustainable pedestal through all the necessary policies put in place, noting that when the Nigeria Office for Development of Indigenous Telecoms Sector (NODITS) was created as a Special Purpose Vehicle under the NCC to drive the National Policy for Promotion of Indigenous Content in the Nigerian Telecommunications Sector in July 2021, the Office was given four areas of focus: Manufacturing, Human Capacity, Research & Development (R&D) and Software & Services development for the telecoms sector.
Danbatta expressed delight that NTICE is one of the achievements of NCC through NODITS because it has served not only to promote Pillar number 5 (Strategic Partnering) of the Strategic Management Plan SMP 2020- 2024 of the Commission but has also become the flagship indigenous content event for the industry.
Listing some of the efforts made by the Commission to promote indigenous content promotion in the telecoms sector, the EVC stated that the NCC has also incentivized the manufacturing of Corrugated Optical Duct (COD) that will be used to protect the country’s fibre infrastructure from the incessant cuts experienced by service providers.
He reiterated the Commission’s commitment to continuously supporting Micro, Small and Medium Enterprises (MSMEs) and Innovators to promote talented young persons and ventures through Angel Investments, R&D support, exposure to Investors, and sponsorship of local and international tech events.
“Another key achievement of our policies is the ban on importation of whole-body SIM cards which was announced at the maiden NTICE event last year. This ban has not only eased the burden on our demand for foreign exchange but has also created business in excess of N55bn for the local SIM card manufacturers in Nigeria which in turn has created direct and indirect jobs.
“Nigeria with its rich history of innovation, resilience, and creativity as well as our diverse culture, talents, and perspectives has birthed solutions that uniquely cater to our challenges and aspirations. The NTICE 2023 platform is a celebration of these achievements, a testament to the Nigerian spirit of ingenuity.
“NTICE is also a place to nurture and support the burgeoning talent pool within Nigeria. By showcasing indigenous innovations and providing opportunities for young entrepreneurs, we are not only nurturing our local talents but also encouraging a culture of entrepreneurship and creativity that will propel Nigeria onto the global stage of technological leadership,” Danbatta said.
He said that having recognized the persistent digital divide that exists within the nation, there was the need to seize the opportunities presented by NTICE 2023 to bridge this gap by advocating for accessible technology and ensuring that the benefits of innovation are extended to every corner of Nigeria, adding that this inclusivity is crucial in driving equitable growth and empowering communities to be active participants in the digital revolution.
In the words of Danbatta: “We note that in a world that is increasingly interconnected and digital, the concept of technological sovereignty holds immense significance. This event stands as a beacon of Nigeria’s commitment to taking charge of its technological destiny. By promoting indigenous content, we are not only fostering economic growth but also asserting our autonomy and self-reliance in the digital realm.
“The Nigeria Telecom Indigenous Content Expo (NTICE) 2023, is a declaration of Nigeria’s commitment to shaping its digital destiny. As we navigate this dynamic landscape, let us remember that our progress is intrinsically linked to our ability to harness the power of indigenous innovation, leverage technology for positive change, and ensure that no one is left behind on this transformative journey.”
Earlier in his opening remarks, Team Lead, Nigeria Office for Developing the Indigenous Telecom Sector (NODITS), Engr. Babagana Digima described the event as a testament to the country’s commitment to fostering homegrown solutions that not only drive economic prosperity but also propel her toward a future brimming with endless possibilities.
Digima said in an era where connectivity is the backbone of progress, where the digital realm intertwines with every facet of lives, the nation’s telecom industry stands as a beacon of advancement, noting that it is not just about communication, but about empowerment, education, healthcare, commerce, and beyond.
“As we gather here today, we recognize that the key to unlocking the immense potential lies in our ability to harness the wealth of indigenous content, to leverage our unique perspectives and talents, and to channel them towards the greater good.
“This expo is not just a congregation of like-minded individuals; it’s a nexus of innovation and creativity. It’s a platform where ideas are exchanged, partnerships are forged, and collaborations are born. It’s a space where the synergy of diverse minds transforms into actionable strategies that will propel us toward new horizons of economic growth and sustainable development,” he said.