In order to help Nigeria maintain its status as the largest economy in Africa till 2025, the Telecommunications industry has made plans to improve on its10% contribution to the nation’s GDP to 25% tby 2025 worth over US$150 Billion. The Nigeria Communications Commission, NCC, also promised to provide enabling environment, good policies and solved the challenges faced by the industry, in order to enable the industry actualize the dream.
This was disclosed during the maiden edition of The 2015 Nigeria Telecom Impact CEO Forum titled “ How Telecoms Can Contribute 25% to the GDP by 2015”. Speaking at the event, the Acting Executive Vice President, NCC, Professor Umar Garba Danbatta who was represented by Mr. Tony Ojobo, noted: “Nigeria’s telecom sector is one of the fastest growing in the world. Telecommunications is obviously leading as the aggregate Foreign Direct Investments from 2007 to 2013, ranked it as a contributor of 24 per cent of such projects.
Between 2011 and 2013, telecommunications sector attracted about US$6 Billion worth of investments which has accelerated ICT contributions to an estimated 10 per cent, translating to some US$50 Billion. “It is the position of the regulator to accurately make a long-term prediction of what the sector of a hugely diverse economy like Nigeria would be in ten years. It is also appropriate to make a prediction where other sectors of the economy are intensely competing to contribute.
The role of the telecom regulator is to continue to provide type of environment that will continue to encourage investments and growth. There is no doubt that this is the reason for the exponential growth in active subscriber statistics of more than 150 Million lines and teledensity of 107 per cent. This is not comparable with less than 500,000 lines in 2001. It is not by accident that more than 80 Million Nigerians have access to the Internet today. These are products of robust regulatory processes.”
He stated that NCC was desirous of the ICT sector contributing even more than 25 per cent to GDP by 2025. According to him, “At the current contribution estimated at 10%, this implies achieving additional 15 per cent over the next ten years. This is by no means a very tall order, given what we have said about the competition sectors of the economy, which is for the good of the nation in the long run.”
He said NCC was ready to provide enabling environment to for the dream to be realized. He said, “As a regulator that has been able to supervise the industry that led to the attainment of 10 per cent contribution to GDP, we shall continue to provide the enabling environment to attain the prediction of 25 percent by 2025.
The NCC is currently engaging the Nigeria Governor’s Forum (NGF) with a view to removing the barriers to infrastructure deployment such as fiber optic cables, BTS, and others from their states. Tax friendly policies should be encouraged and Right of Way (RoW) need to be addressed.
Also speaking at the event, the Chairman, Open Media Group, Engr. Ernest Ndukwe (OFR) revealed: “The Telecom industry today presents many exciting things. It is a major contributor to the GDP of our nation. It is an enabling industry which can transform all sectors in the country. It is the critical industry to the socio-economic development of our country.”
In a related development, Danbatta also warned against multiple taxation of telecoms operators, describing it as an action capable of depleting broadband penetration in the country.
Danbatta, who was represented by Director, Public Affairs, Mr. Tony Ojobo, at the 21st Anniversary of the Association of Telecommunications Companies of Nigeria (ATCON) said that the case of “Pre-investment taxation of the operators” as against “tax-after-profit” must be discouraged, at the State level specifically.
He maintained that, multiple taxation is one of the limitations facing the growth of broadband penetration and services enhancement in Nigeria, as incessant and multiple taxes and their enforcement by government officials hamper the process to a large extent.
Source: http://www.vanguardngr.com/2015/11/telecoms-industry-to-contribute-25-to-gdp-by-2025/