Telecoms contributed N2 trillion to GDP in first quarter 2019 ― NCC Boss

The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Professor Umar Danbatta has said that in the first quarter of 2019, the telecoms industry contributed N2 trillion to the country’s Gross Domestic Product (GDP).

Professor Danbatta who spoke at the sideline of Valedictory Press Conference of the Minister of Communication, Barrister Adebayo Shittu, said that the Commission after fining MTN facilitated to the telecom giant to be listed in the Nigerian Stock Exchange.

He said the Commission targeted 30 per cent broadband penetration by December 2018, but it exceeded its target by hitting 31.98 per cent penetration in December 2018.

“Telecom’s sector contributes 2trillion naira to the economy’s GDP quarterly, and that figure is not by the NCC but the National Bureau of Statistics and it is verifiable. The contribution of the Telecom sector to the economy stands at 2trillion naira per quarter,” the EVC NCC said.

On broadband penetration, he said “like I keep saying, consistent with national broadband plan, this is now talking about what happened in 2018, so we were supposed to in December 2018 meet 30 per cent broadband penetration in the country, giving the population of figure of about 190million which is the projected figure given by the national population commission of this country that would translate to 57million Nigerians would have access to the internet.

“So by December, 2018 we had exceeded the 30 per cent broadband penetration proscribed in the national broadband plan, as at 31st ending of December, the penetration stood at 31.98 per cent, the penetration as we are talking now stands at 33.34 per cent which translates to over 60million Nigerians having access to broadband services all over the country.

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“There is a new target, one that is proposed by stakeholders of 70 per cent broadband penetration in the next four years. The IT UNESCO broadband commission stipulated or recommended 65 per cent broadband penetration for Nigeria in the next four years. If we interpolate between the two, 65, the stakeholders and the stakeholders are saying no, 70. We are waiting for an official pronouncement of the target to use for the next level of broadband penetration.”

Professor Danbatta speaking further, said “it is important to talk about how we have succeeded in empowering Nigerians to control and manage Telecom companies in this country, we have translated into action, an important function of the commission by MTN listing in the stock exchange, we have given reality to that important function of the commission, through this listing, Nigerians would be empowered to control all or manage one of the dominant telecommunications companies in the country.

“This is arising from the settlement agreement that we reached with MTN. One the repayment of 330billion naira that is to pay billion naira to the coffers of the government by which they have paid 235billion naira remaining only 55billion naira to complete the payment that is the last tranche, and MTN has again has complied by listing in the stock exchange, that way Nigerians can now possess shares and by possession of MTN shares, they would be financially empowered and socially. This is very portent milestone in translating the function of the commission as enshrined in the act establishing the Nigerian Communications Commissions.”