Telecom
Danbatta Applauded for NCC’s ICT Parks Across Nigeria
Prof. Umar Garba Danbatta, executive vice-chairman, Nigerian Communications Commission (NCC), has been commended for its ongoing initiative in building Information and Communication Technology (ICT) parks across the six-geo political zones of the country.
Dr. Abdullahi Umar Ganduje, Governor of Kano State, gave the commendation when he visited the site of an ongoing construction of an ICT Park by the Commission for the North-Western zone located in Kano State, recently.
Saheliantimes.com reports that the governor acknowledged the efforts and commitment of the Danbatta-led NCC in ensuring increased digital access for fast-tracking digital innovation across Nigeria and the North-West in particular, saying the initiative will trigger socio-economic transformation of the area in no distant future.
Ganduje said, “Realising that a major project that resonates with the global vision for the 4th Industrial Revolution (4IR) is being vigorously driven by NCC leadership, shows the kind of socio-economic transformation we should expect through ICT across Nigeria in the next few years.
“For the ICT Park being built here in Kano to serve the North-West zone, the government and citizens of Kano State are grateful to Prof. Danbatta and his team for bringing development to the state and the zone at large.”
He also applauded the quality of the construction work being undertaken by the NCC on the ICT Park and expressed appreciation for the foresight of the NCC for accommodating an expansion plan at the project site.
The ICT Park in is an initiative of the Executive Vice-Chairman of the NCC, Professor Umar Garba Danbatta, to provide Innovation Labs and Digital Fabrication Laboratories (Fablabs) for use by ICT innovators and entrepreneurs to turn their ideas into products and prototypes.
The Tier-4 Digital Industrial Complex (DIC) will provide a Commercial Hub for ICT capacity building and digital skills, create employment and entrepreneurial activities and facilitate smart city deployment across the Digital Industrial Complex.
The ICT Park consists of laboratories for ICT innovations and Commercial Hubs providing capacity building to ICT startups and entrepreneurial activities, in Kano State.
The parks are designed to provide fast internet service (broadband) and constant power supply.
ICT park comprises an area or location with concentration of all ICT facilities, which enables a concerted leap into the digital age by creating a dynamic environment in which local talent is incubated, cultivated, and shared. ICT park is best tested and trusted institutional mechanism to address the needs of technology-intensive, knowledge-based Micro, Small and Medium Enterprises (SMEs).
The NCC ICT Parks, which are being built across the six geo-political zones of the country, involve the construction and equipping of fully-functional Tier-4 Digital Industrial Complex (DIC) in each of the six geo-political zones of the country.
The ICT Park consist of laboratories for ICT innovations and Commercial Hubs providing capacity building to ICT start-ups and entrepreneurial activities. The Parks are designed to have fast internet service (broadband) and constant power supply.
The digital parks are to provide Innovation Labs and Digital Fabrication Laboratories (Fablabs) for use by ICT innovators and entrepreneurs to turn their ideas into products and prototypes.
The parks will also provide a Commercial Hub for ICT capacity building and digital skills; create employment and entrepreneurial activities; and facilitate smart city deployment across the Digital Industrial complex.
Speaking on the ICT Parks project recently, Prof Danbatta stated that the project was conceived and designed to support the federal government’s ICT-related policies and programmes by facilitating the availability and accessibility of ICT services across the country, promote their usage across all sectors and ultimately address youth unemployment in the country.
Designed to propel socio-economic transformation in the country, the EVC said the ICT Parks will help build capacity for the teeming population of Nigerian youths in the area of skill acquisition and innovation by complementing existing initiatives geared towards accelerating socio-economic transformation of Nigeria.
“The whole idea of putting these two things (i.e. skill acquisition and innovation) at the forefront of this very important initiative is to produce youths that can be self-reliant, generate employment for themselves and for other Nigerians,” he said.
Danbatta said based on its national structural spread, no part of the country will be left out as beneficiaries of the initiative. “The NCC ICT Parks Project is another move by the current leadership of the Commission to boost youth digital skills acquisition, promote innovations, provide jobs for the teeming Nigerian youth and ultimately support the overall digital economy agenda of the Federal Government,” he said.
He said the parks will support software development, incubation and hardware development. “We also hope to see innovative technologies that will leverage the broadband network, which the Commission is deepening in order to socially and economically transform our communities and societies.”
Danbatta urged the potential and would-be beneficiaries of the project, especially the youths, to be ready to leverage the initiative as it promises to empower them socially and economically.
“I would like to send out a very important message to our youths, especially those who are currently occupied with various innovative applications, those who have acquired the skills but are looking for where to put the skills fruitful engagements, by incubating them, commercialising them, or giving publicity to these excellent initiatives, to be ready to leverage the facilities,” he stated.
The ICT Park in Kano is expected to be completed and inaugurated at the end of the year.
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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