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Telecoms investment in Nigeria rise to $75.6bn — NCC EVC declares

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…Sector adds N10.126 trillion to GDP in 2022

The Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, has officially announced that the investment profile in the nation’s telecommunications sector, comprising foreign direct investment (FDI) and local investment, has reached $75.6 billion as of 2021.

Danbatta disclosed this at an interactive session with stakeholders in the communications media ecosystem, in Lagos on Wednesday where he provided his scorecards and landmark developments that have shaped the trajectory of growth in the telecoms sector since he became the chief telecom regulator in August 2015.

According to Danbatta, in 2018, investment profile in the sector stood at $68 billion. This increased to $70.5 billion in 2019 and $72 billion in 2020. At the end of 2021, the figure rose to $75,560,563,417.79 ($75.6 billion). The latest figure is the current official investment profile computed in the industry up from the initial $70 billion investment in the last few years.

Investment in the telecommunications sector in Nigeria is computed from two sources: the Central Bank of Nigeria (CBN), and the financial data obtained from service providers by the Commission.

While the CBN collects and calculates an element of the telecoms sector to include FDI, portfolio and others, the Commission collects investment figures from telecom licensees described as domestic investment arising from capital expenditure (CAPEX) which form part of the total investment in the industry.

The NCC CEO said through effective regulatory environment put in place by the Commission, the telecom sector has recorded tremendous growth from an initial investment profile of $500 million as at 2001, when the sector was fully liberalised.

Similarly, Danbatta said the telecom sector has continued to be a major contributor to the Nigeria’s economy through an impressive the sectoral contribution to the nation’s Gross Domestic Product (GDP) quarterly, up from about 8.5 per cent in third quarter of 2015, contributing N10.126 trillion to the nation’s GDP in 2022 alone.

Citing data from the National Bureau of Statistics (NBS), Danbatta said the telecoms sector contributed N10.126 trillion as an aggregate quarterly contribution to GDP in 2022.

“In the first quarter, the sector contributed 12.94 per cent equivalent to N2.246 trillion while the second quarter witnessed an all-time high GDP contribution by the telecom sector to the nation’s economy, standing at 15 per cent and valued at N2.593 trillion. The sector’s contribution to GDP in the third was 12.85 per cent and in the fourth quarter, it grew to 13.55 per cent, which are valued at N2.436 trillion and N2.851 trillion respectively.

“The growth trajectory continued this year as telecommunications and Information Services sector in Nigeria delivered a handsome N2. 508 trillion in terms of financial value contribution to the nation’s gross domestic product, GDP, representing 14.13% in the first quarter 2023,” he said.

Telecoms contribution to national GDP has grown significantly since assumption of Prof. Danbatta as the EVC of NCC in August, 2015, according to available data from NBS.

From 8.50 per cent in 2015, it grew to 9.13 per cent in 2016 and to 8.66 per cent in 2017. In the last quarter of 2018, telecoms contributed 9.85 per cent to national GDP while it added 10.60 per cent in the fourth quarter of 2019.

Also in the second quarter of 2010, it added 14.30 per cent to GDP; 14.42 per cent in the second quarter of 2021. The highest quarterly contribution to GDP by the sector to the economy was 15 per cent in the second quarter of 2022.

Overall, Danbatta said the sector has become a major enabler of economic development in Nigeria, as it continues to positively impact all the facets of the Nigerian economy. “As the regulatory authority for the telecom sector in Nigeria, we are happy that the sector has recorded phenomenal growth statistics in the past two decades of the liberalization of the telecoms sector. However, we will not rest on our oars. We will continue to push upward to greater heights by encouraging expansion of frontiers to put Nigeria’s imprint on the global map of digital economy,” he said.

In addition to the growth in investment and GDP contribution, Danbatta said, “As of May, 2023, active voice subscriptions reached 221.3 million, equivalent of 115.91 per cent teledensity, while Internet subscriptions rose to 159.6 million.

According to the CEO of NCC, broadband subscriptions on Third Generation (3G) and Fourth Generation (4G) networks increased to 92.2 million, representing a 48.28 per cent broadband penetration in the country.

Also, following the issuance of 3.5GHz spectrum licences for the deployment of Fifth Generation (5G) networks in Nigeria, marked by ultra-high speed internet, low latency and high capacity, and the subsequent commercial launch by two of the three licence holders, 5G subscriptions have grown to over 60,000 in many cities in at least 12 states of the Federation.

Danbatta assured of the Commission’s commitment to always give concrete expression to the Federal Government Executive Order 001 focused on Ease of Doing Business and other digital economy-oriented policies, by embarking on various regulatory initiatives that support a friendly investment climate for investors in Nigeria and enhance value for money for telecom consumers.

The EVC particularly commended the media as a strategic partner and enabler of growth in the telecom sector “through accurate, adequate and timely reporting of all regulatory activities of the Commission.”

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Girls in ICT day: Airtel hosts interactive knowledge session for secondary school

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As part of its commitment to empowering and mentoring women to become global leaders while breaking stereotypes and closing gender gaps, the Airtel Women Network, a platform comprising female employees of Airtel Nigeria, welcomed girls from Airtel’s adopted school, Alaba Oro Comprehensive Senior High School, Ajegunle,, to commemorate International Day of Girls in ICT on Monday, 29th April 2024.

Led by the telco’s IT Director, Kemi Ariyo, the session emphasised the need for the rise of influential female role models in driving progress within Science, Technology, Engineering, and Mathematics (STEM) careers. It also served as an avenue to inspire young girls about the vast opportunities within the Information and Communication Technology (ICT) field.

During the session, Director of Enterprise and Airtel Business and President of the Airtel Women Network, Ogo Ofomata, shared insights on the significance of the 2024 commemoration with the students.

“Leadership entails leading yourself to do the things you have to do. With regard to the theme of this year’s International Girls in ICT Day, which is Leadership, our goal is to empower young girls and women to become programmers, coders, designers and to pursue careers in the ICT sector, ultimately becoming leaders in the IT sector,” she said.

The highlight of the event was a thought-provoking session led by Kemi Ariyo, IT Director at Airtel Nigeria, emphasising the importance of technological knowledge in addressing various global challenges.

In her words, “The world revolves around technology and everything we do today has to do with technology. You can get into that space by adopting hard work, smart work, and an active involvement in internship programs. In addition, just as technology can be used in music and other sectors, learning technology can help you achieve your goals of problem- solving in this digital age.”

Also speaking at the event, Chief Financial Officer, Airtel Nigeria, Phanindra Nichanametla restated Airtel’s tagline ‘A Reason to Imagine,’ reassuring the students of Airtel’s commitment to encouraging positive imagination.

“A very important note to take home from this event is that Airtel is here to change your imagination and give you opportunities to imagine more,” he said.

Airtel remains committed to promoting initiatives that promote gender equality and diversity in the workplace. By investing in the education and empowerment of young girls in ICT, Airtel Nigeria continues to pave the way for a more inclusive and prosperous future in the world of technology.

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NIPOST cracks down on illegal courier/operators in Abuja

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By Blessing Emmanuel, Abuja

In a bid to restore integrity and order to Nigeria’s postal and courier industry, the Courier and Logistics Regulatory Department (CLRD) of the Nigerian Postal Service (NIPOST) has embarked on a vigorous clampdown operation targeting illegal courier service and logistics operators in Abuja.

Speaking with NewsDirect correspondent, Shonde G. Dotun, the General Manager of CLRD, on Friday, 3rd May, after the clampdown, shed more light on the motivations behind the enforcement and the challenges faced in the process.

Dotun began by emphasising the necessity of enforcing Section 43 of the NIPOST Act, which mandates all express service operators, delivery service providers, dispatch operators, and postal logistics companies to obtain a license from NIPOST before commencing operations.

He highlighted the rampant disregard for this regulation, with many operators venturing into the business without proper licensing, leading to a proliferation of unlicensed and illegal courier and logistics services across the country.

“The enforcement/clampdown operation has come to stay,” Dotun declared emphatically.

He outlined several reasons driving this decisive action, including the prevalence of unethical practices such as price undercutting, pilfering, damages, and dumping of customers’ items. Dotun expressed concern over the mounting public complaints regarding customer exploitation and the carriage of illicit drugs and prohibited items, posing grave threats to public safety and security.

Moreover, the issue of overloading and exceeding the stipulated weight limit of fifty kilograms further compounded the challenges faced by the industry, eliciting public disdain and eroding trust in the profession. Dotun emphasised that such practices not only tarnish the reputation of the postal sector but also contravene global best practices and international conventions.

Dotun underscored the importance of private investors adhering to due process and obtaining operating licenses from NIPOST to avoid facing the full wrath of the law. He reiterated the department’s commitment to prosecuting offenders and ensuring strict adherence to regulatory requirements.

 Offenders caught operating without a license are apprehended and handed over to the police for prosecution, as it is deemed a crime against the state.

On the aspect of awareness and sensitisation, Dotun acknowledged NIPOST’s efforts in educating the public through various channels, including radio and TV stations. However, he lamented the lax attitude of some individuals who fail to conduct proper research and due diligence before venturing into the business space, resulting in legal repercussions.

In closing, Dotun urged prospective investors to visit the NIPOST portal @https://cird.nipost.gov.ng for comprehensive information on licensing requirements and regulations governing the postal and courier industry. He stressed the importance of compliance with regulatory standards to ensure the sustainability and credibility of businesses in the sector.

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May Day: Glo salutes Nigerian workers

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Digital telecommuni cations solutions provider, Globacom, has saluted Nigerian workers as the country observes this year’s edition of the International Workers’ Day. The company enjoined them to rededicate themselves to excellence so as to take Nigeria to the next level.

In a solidarity message released on Tuesday, Globacom lauded the resilient spirit of workers in spite of present challenges. It urged them to use the opportunity of the Workers’ Day to reflect on how their contributions can build a better and more vibrant society.

“We salute Nigerian workers on this day and commend them for the hard work, commitment, resourcefulness and industry which are essential for the growth of the economy of any nation,” Globacom said, and urged them not to rest on their oars.

The company noted that the story of Nigeria cannot be complete without the huge contributions of workers, both in the public and private sectors.

The International Labour Day is observed annually on May 1 to recognise the contributions of workers all over the world. It is also used to promote a fairer and more sustainable future for all by advocating for workers’ rights.

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