Telecom
Danbatta, Others Extol Benefits of Data in Development of Digital Economy
Professor Umar Garba Danbatta, Executive Vice Chairman and Chief Executive Office (EVC/CEO) of the Nigerian Communications Commission (NCC) has said that real value can only be driven from data when it is gathered completely and accurately, connected to other relevant data, and done in a timely manner.
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He stated this while delivering a keynote address at the 2021 edition of the Nigeria ICT Impact CEO Forum held on Friday, at Oriental Hotel, Lagos.
The event themed: “Data the New Oil of the Digital Economy” had ICT policymakers and policy enablers in attendance.
The EVC noted that data when properly refined could quickly become a decision-making tool – information – that allows companies to react to market forces and be proactive and intentional in their decision-making.
He further expressed delight in the significant contributions of telecommunications sector in the development of the Nigerian economy.
According to him, “It is gratifying that in the last few years, the telecommunications sector has consistently driven the digital economy agenda of the government, as it provided the necessary impetus for the support of the Nigerian economy in the digital space.
“It is pertinent to add that the information and communication sector recorded a growth of 6.31% in Q1 2021, which was largely driven by the growth in the telecommunications sub-sector (+7.69%).
“This growth trend has rekindled the hope that economic diversification can be realised in Nigeria.
“Also one of the most dynamic developments related to the digital economy has been the rise of social network platforms which have set the stage for unprecedented social 2 interactions, dialogue, exchange and collaboration.
“These platforms have opened up multiple avenues for entrepreneurship, business connectivity and engineered several activities that support ease of doing business in Nigeria”.
Danbatta further stated that the Commission is currently working on a regulatory instrument to manage data collection and utilisation in the Nigerian communications sector.
The process, according to him, is going through the Commission’s collaborative rule making approach and will provide all stakeholders with ample opportunities to participate.
Engr Ikechukwu Nnamani, CEO – Medallion Communications Limited and President of Association of Telecommunications Companies of Nigeria (ATCON), speaking on the Topic titled: “Building Blocks to a Data Based Digital Economy” said that digital economy is the network of economic activities, commercial transactions and professional interactions that are enabled by information and communications technologies.
He noted that the benefits of digital economy span across, Job creation, Rise in E-commerce, Expansion in business opportunities, Transparency, Improvement in public services, Digital delivery of goods and services and others.
He equally said that Nigeria is still far from generating the volume of data that will make data the new oil for Nigeria, noting that there is still need for more local content data generation in Nigeria for its Data to move from people and business based to machine based if we are to generate adequate data to make data Nigeria’s new oil.
According to him, “Nigeria is missing in key cloud services platform location.
“Hyperscale datacenters must be located within Nigeria to make the key cloud service platform to be located within the country.
“Edge datacenters are needed for effective storage and distribution of content across the country to ensure efficient service delivery.”
Earlier, Tayo Adewusi, editor-in-Chief of ICT Watch magazine, the organizers of the event, said that Data in the 21st Century is like Oil in the 18th Century: an immensely, untapped valuable asset.
He noted that Data is the key to smooth and efficient running of everyday life, including in both public and private sectors.
“Like oil, for those who see Data’s fundamental value and learn to extract and use it there will be huge rewards.
“We are in a digital economy where data is more valuable than ever. It’s the key to the smooth functionality of everything from the government to local companies. Without it, progress would halt”.
Oluwarotimi Arakunrin Akeredolu, SAN, Governor of Ondo State, speaking at the event via virtual platform, emphasized the importance of Data to all stakeholders in Nigeria’s economy, noting that it’s the lifeblood of any digital economy.
He said, “The importance of data cannot be overemphasised in the economy of nations because data is the lifeblood of digital economy.
“We are in digital economy where data is more valuable than ever.
“Hence, it is not surprising that data has of late been referred to as ‘the new oil’. Data is an essential resource that powers the present digital economy”.
Mr Kashifu Inuwa, the Director-General, National Information Technology Development Agency (NITDA) speaking on the topic: Nigeria Data Protection Regulation (NDPR) and the Future of Data Governace, said the world has gradually evolved into a digital platform in which everything we do appears to be linked to technology in some way.
He noted that the digitalization phenomenon has now elevated digital platforms to become drivers of the economy rather than enablers.
The DG added that digital economy is highly dependent on the availability of data and the requisite skills to process such data to extract maximum economic and social value.
Abiodun Omoniyi, CEO, VDT Communications Limited, who spoke on the theme: ‘Why Data will be the New Oil in the Digital Economy’, said that data is now world’s most valuable resource.
He stated that it will not be right to say that data will be the new oil, but that it is already the new oil.
On the contributions of Telecom industry in the Nigerian economy, Omoniyi said, “Telecom is already the new oil especially in Nigeria with the highly dwindling oil fortunes.
“The fact that telecoms globally and in Nigeria are largely driven by the private sector gives it tremendous room for growth.
“However, governments around the world and including Nigeria need to create growth-oriented policies and provide enabling environments for the full potentials of data to be harnessed.
“Data has enormous potentials to displace oil in leading the global economic growth now and the foreseeable future”.
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.
Gbenga Adebayo, chairman, Association of Licensed Telecom Operators of Nigeria (ALTON) has said the telecoms sector should not be a palliative to solve economic woes.
Gbenga Adebayo, chairman of ALTON,
He made this call during his address at the Groupe Spécial Mobile Association (GSMA) digital economy report launch which took place in Abuja.
According to Adebayo, the telecom industry faces numerous challenges that hinder its growth and development.
He emphasized the need for sustainable investment, effective regulation, and a conducive business environment to drive progress.
The GSMA digital report, launched May 9th 2024, 2024, highlights the telecom’s 8 percent contribution to Nigeria’s GDP and 13.5% when considering the broader ICT ecosystem.
The report also highlights the significant challenges plaguing the industry including investment challenges, right of way, multiple taxation, and regulation.
Adebayo highlighted the existence of over 45 associated charges and levies on operators, despite the supposed removal of right of way costs.
He said that it creates an unfavorable business environment, discouraging investment and hindering the industry’s ability to deliver quality services.
He also stressed that regulatory interference and the lack of independence for the regulator exacerbate the problem.
The price review should be a simple regulatory process.
The public debate this has gained makes it appear the industry is insensitive to people’s concern.
“While the government tries to provide incentives for the public on account of ongoing macroeconomic headwinds, the telecoms sector should not be used as a palliative to solve the people’s problem. We must price right to sustain the industry; we must price right to have the right investment,” , Adebayo said.
He concluded that the industry must be allowed to operate sustainably, with the right investment and regulation, to deliver quality services and drive economic progress; encouraging stakeholders, including policymakers, regulators, and operators, to work together to address the challenges facing the industry, in order to drive economic growth, and fulfill its potential as a critical sector in Nigeria’s economy.
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