The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta, yesterday stated that investment has become more compelling, given that the telecom industry is a capital intensive.
Danbatta stated this, while taking a deep and predictive look at the financial health of the telecom industry at the maiden edition of the Nigerian Telecom Leadership Summit in Eko Hotel in Lagos.
According to him, with the competition for foreign direct investments becoming more fiercer among various nations, it is believed that investment opportunities, challenges and prospects would form a critical part of Nigeria’s attempt to match with technology evolution dynamics.
“No industry with these characteristics such as ours can be sustained over a long period of time without a corresponding injection of more investment,” he said.
Meanwhile, reeling out some impressive figures, Danbatta stated that total investment in the Nigerian telecom industry presently stood at $70 billion, with a contribution of N1.9 trillion, which represents 10.11percent to the country Gross Domestic Product (GDP).
In the voice segment, Nigeria has 173 million lines as of March 2019, which translates to teledencity of 91 percent.
In broadband, Nigeria has recorded a remarkable penetration of 32.48 percent as at December 2018. Thus, surpassing the strategic national broadband plan, which prescribed penetration of 30 percent by the end of 2018. He said as at March 2019, broadband penetration stood at 33.22 percent compared to 8.50 percent in 2015.