Mrs. Bella Disu, Executive Vice Chairman of Globacom says the company is poised to help drive the realization of the Federal Government’s digitalization agenda.

She stated this at the launch of Nigeria’s Digital Economy Report themed ‘Driving Economic Growth through Digital Transformation’ on Thursday at the Transcorp Hilton Hotel, Abuja.

Mrs Disu, who emphasized the importance of Nigeria continuing to harness the transformative powers of emerging technologies, disclosed Globacom’s plan to enable technological advancement in the country.

“We see the current challenges in the sector as a responsibility to be at the forefront of enabling tech advancement. We are at the moment doing two things which key into the Ministry of Communications, Innovation and Digital Economy’s strategic blueprint. Under the pillar of Knowledge, the ministry is planning to have about 3m technical talents by 2027 and also increase digital literacy.

“GLOIn Glo, we have a Glo learning management solution which has the capacity to train up to 100,000 users a month on different skill sets from digital marketing and other professional courses some of which we plan to offer as CSR and also on courses covering Python, blockchain, AI to really push digital literacy”, the EVC explained.

“Under innovation, we plan to have four innovation hubs, with one to be rolled out in Lagos in the fourth quarter of the year, and three to be commissioned by the second quarter of 2025 in PH, Ibadan, and Abuja. We see these hubs as being an ecosystem and a catalyst for technological advancement where we have hubs for tech enthusiasts, entrepreneurs, incubators and accelerators to really collaborate, thrive and learn”, she added.

Mrs Disu noted that the impact of digitalization was already visible in a few sectors: “digital platforms have completely revolutionised the transportation and mobility services sector with ride-hailing companies facilitating hundreds of millions of rides in the last seven years, In ecommerce, the sector has grown significantly with online user market now about 76.7 million users. We have also seen a huge growth in POS terminals from about 155,000 in 2017 to now 1.8 million in 2023”.

“More and Nigerians are going into remote work, and with the right training, they will be able to take up even more lucrative roles in the sector. In entrepreneurship and start-ups, through fintech and content creation and startups, the opportunities are vast,” she pointed out, and pledged Globacom’s continued support for the sector.

Mrs Disu commended the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, and the Executive Vice Chairman of NCC, Dr. Aminu Maida, for show commitment and political will to address the challenges in the telecom industry.

Also speaking at the event, Dr Bosun Tijani, said with Nigeria’s huge population and resources, the country was well placed to play a critical role in a connected economy. “We can only do that by diversifying our economy and strengthening technical efficiency. This is why there is immense focus on digitalizing our economy and accelerating development in sectors like agriculture and mining to improve quality of education so we can improve learning outcomes and as such deepen pour workforce, improve on transportation and infrastructure so that our economy can get the backbone that is required to make it work for our people”, the minister stated.

The Digital Economy Report was presented by GSMA Africa and the World Bank.

A recent Groupe Spécial Mobile Association (GSMA) digital economy report has cast a spotlight on the significant contributions of Nigeria’s telecom sector to the nation’s GDP, highlighting its crucial role in driving economic growth and development.

Released amidst growing interest in the Nigerian telecom landscape, the report provides a comprehensive analysis of the sector’s impact on the country’s economic metrics. Key findings reveal that in 2023 alone, the telecom sector directly contributed 8% to Nigeria’s total GDP. However, when factoring in the wider ICT industries’ value-added contributions, this figure surged to an impressive 13.5%.

Beyond mere numbers, the report delves into the intricacies of the telecom sector’s influence on various economic sectors. It elucidates how the mobile industry’s cumulative contribution to Nigeria’s GDP reached an estimated 20 trillion NGN in 2023, accompanied by substantial tax revenue contributions totalling 2.8 trillion NGN. Such figures further highlight the sector’s role in driving fiscal revenues and national economic stability.

Moreover, the report sheds light on the transformative potential of the telecom sector in enabling digitalisation across key industries. Projections indicate that by 2028, sectors such as agriculture, manufacturing, transport, trade, and government are poised to witness a remarkable GDP increase of approximately 2 percentage points.

This surge is expected to generate an additional NGN 1.6 trillion in tax revenue, marking a significant milestone in Nigeria’s quest for economic diversification and resilience.

“The telecommunications sector is the backbone of the digital economy. We have a strong appreciation of the fact that if we are able to improve the business environment and invest in the sector, we can continue to improve the level of productivity.

A country like Nigeria has significant opportunities to contribute to the world, but this is impossible without diversifying the economy”. Dr. Bosun Tijani, Minister of Communications, Innovation and Digital Economy added.

The report also highlights the vital role of 5G networks in enhancing operational efficiency across sectors through real-time data transmission and remote monitoring.

It spotlights the immense potential of digitalisation in sectors like manufacturing and trade, with the capacity to add trillions in industry value and generate substantial employment opportunities and tax revenues.

Despite these promising revelations, the report also acknowledges the challenges faced by the telecom sector, particularly its capital-intensive nature.

The report’s findings beckon a clarion call for concerted efforts to leverage the telecom sector’s potential as a catalyst for economic advancement. With the right policies and investments, Nigeria stands poised to harness the full spectrum of opportunities offered by its vibrant telecom landscape, driving inclusive growth and prosperity for all.

While the advocacy for tariff increase remains under deliberations, revelations in the latest Groupe Spécial Mobile Association (GSMA) digital economy report have watered the ground for an increased tariff increase advocacy. The report, offering a deep dive into the sector’s dynamics, provides compelling arguments for adjusting tariffs to ensure sustainability and growth.

L-R: Juergen Peschel, Chief Executive Officer, 9Mobile; Dr. Bosun Tijani, Honourable Minister of Communications, Innovation, & Digital Economy; Dr. Aminu Maida, Executive Vice Chairman, Nigerian Communications Commission; Gbenga Adebayo, Association of Licensed Telecommunications Operators of Nigeria (ALTON); Bella Disu, Executive Vice Chairperson, Globacom; Karl Toriola, Chief Executive Officer, MTN; Angela Wamola, Head of Sub-Saharan Africa, GSM Association (GSMA); Ibrahim Dikko, Chief Executive Officer, Backbone Connectivity Networks Nig. Ltd.; at the GSMA Nigeria Digital Economy Report launch in Abuja on May 9 2024.

Highlighted in the report is the telecom sector’s significant contribution to Nigeria’s GDP. In 2023 alone, it accounted for 8% of the nation’s total GDP, a figure that swelled to 13.5% when considering the broader ICT ecosystem. The mobile industry’s overall contribution to GDP was estimated at a staggering 20 trillion NGN, with substantial tax revenues of 2.8 trillion NGN.

The sector’s potential to drive digitalisation across various domains is of paramount importance. The report projects a significant boost in GDP across sectors like agriculture, manufacturing, transport, trade, and government, translating into nearly 2 million jobs and an additional NGN 1.6 trillion in tax revenues by 2028.

The promise of 5G networks is poised to revolutionise operations, particularly in critical sectors like oil and mining, with real-time data transmission and remote monitoring enhancing efficiency. Digitalisation, especially in manufacturing and trade, holds immense potential for value addition and job creation, promising billions in additional tax revenues.

Despite Nigeria’s noteworthy internet usage figures, with 29% of the population regularly online, the sector faces challenges. The country boasts the lowest-cost data baskets in Africa, yet maintaining competitive mobile data network speeds remains essential. With an average speed of 21Mbps, Nigeria’s performance is comparable to neighbouring countries, underscoring the need for sustained investments.

However, sustaining this growth requires recognizing the capital-intensive nature of the telecom sector. Operators must continually invest in network maintenance and expansion, necessitating a conducive regulatory environment that ensures fair returns on investments.

Chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, commenting during the report launch, said, “We raised several issues on the state of affairs of the telecom industry, and among the challenges articulated is the return on investment, stability of the infrastructure and the need for pricing rights. As an ecosystem, tariff hike is one of the sensitive issues affecting the telecom sector and has to be addressed by all stakeholders. We need to look at the state of affairs of the industry and examine holistically. There are ongoing obligations to our end users including infrastructure security. Tariff increase is a solution to solve multiple challenges of the telecom industry.“

The GSMA report positions the ongoing tariff adjustment deliberations as a strategic move to secure the sector’s long-term viability. With Nigeria’s digital future at stake, finding a balance between affordability for consumers and sustainability for operators is paramount to ensure continued growth and innovation in the telecom landscape.