The Nigerian Communications Commission (NCC), and the Ministry of Communications, Innovation, and Digital Economy, have set their sights on a significant leap, aiming to elevate the telecommunications sector’s contribution to the nation’s Gross Domestic Product (GDP) to 25%.
This ambitious target comes as the latest data from the National Bureau of Statistics (NBS) reveals the sector’s robust, albeit slightly decelerating performance.
Currently, the telecom sub-sector contributes 14.40% to the GDP in the fourth quarter of 2024, according to the NBS, solidifying its position as the third-largest contributor to the real GDP, trailing only crop production and trade.
The broader Information and Communication Technology (ICT) sector, which encompasses telecommunications, publishing, motion picture, sound recording, music production, and broadcasting, contributed 17.00% to the real GDP in Q4 2024, marking a steady increase from 16.66% in the same period of 2023. The annual contribution of the ICT sector reached 17.68% in 2024, a slight uptick from 17.34% in 2023.
Despite these positive trends, the NBS report highlighted a slowdown in the ICT sector’s nominal and real growth compared to the previous year. This underscores the challenges facing the industry, which the NCC and the Ministry are determined to address.
Dr. Aminu Maida, the Executive Vice Chairman of the NCC, emphasized the sector’s potential for further growth. “While the current contribution of around 14% is commendable, we believe the telecom sector can achieve much more. By addressing the existing challenges through strategic policies and collaborations, we are confident in reaching our 25% target,” Dr. Maida stated.
The telecom industry, dominated by mobile network operators such as MTN, Globacom, Airtel, and 9mobile, along with Internet Service Providers (ISPs), is a critical driver of economic activity across all sectors in Nigeria. Its influence extends to financial services, e-commerce, education, and healthcare, making its continued growth vital for the country’s overall development.
Four key focus areas:
The NCC and the Ministry are expected to focus on several key areas to achieve their ambitious goal, including:
- Infrastructure Development: Expanding broadband connectivity and improving network quality.
- Policy Reforms: Creating a conducive regulatory environment that encourages investment and innovation.
- Digital Inclusion: Bridging the digital divide and ensuring access to telecommunications services for all Nigerians.
- Addressing Sector Challenges: Solving issues like right of way for fiber optic cables, and security of telecom infrastructure.
The push for a 25% telecom contribution to GDP reflects Nigeria’s commitment to leveraging digital technologies for economic diversification and sustainable growth. As the industry continues to evolve, stakeholders are optimistic that the collaborative efforts of the NCC, the Ministry, and private sector players will pave the way for a more robust and inclusive digital economy.
