New Policies to Boost Telecom Sector’s GDP Contribution to 25% Underway—Aminu Maida
The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, has announced that the Commission and the Ministry of Communications, Innovation, and Digital Economy are working on new policies to increase the telecom sector’s GDP contribution to 25%.
Speaking on Friday evening in Lagos during a reception hosted by the Association of Telecommunications Companies of Nigeria (ATCON) in his honor, Maida emphasized the sector’s potential for growth. He noted that while the telecom sector currently contributes 14.58% to the GDP, it can achieve more if existing challenges are addressed.
“I acknowledge the challenges in the industry and assure you that we are addressing them seriously. The Minister of Communications, Innovation, and Digital Economy, and I are collaborating to develop policies that will ensure the sustainability of an industry that has significantly contributed 14% to the GDP. We believe we can reach 25% and beyond, and we are actively working towards that with the Ministry,” Maida told telecom operators.
Boosting Connectivity
Maida also highlighted the need to enhance connectivity in the country. Despite nearly 200 million connected lines, more than half are still on 2G. Data from the Commission’s website shows that out of the 219 million active subscriptions recorded in March this year, 56.97% were on 2G, while only 32.74% were on 4G.
“There is significant work to be done, especially in addressing challenges faced by Mobile Network Operators (MNOs) and Original Equipment Manufacturers (OEMs) for long-term sustainability. Even the president recognizes the importance of digital infrastructure for Nigeria’s future,” he said.
Referring to recent requests by telecom operators for the Commission to approve tariff increases, which the regulator has declined, Maida stated:
“Please be assured that we have your best interests at heart. However, as a regulator, we must balance the interests of the industry and the consumer to ensure a fair deal for everyone.”
Welcoming the NCC EVC, the President of ATCON, Mr. Tony Izuagbe Emoekpere, thanked Maida for his open-door leadership policy, which has fostered closer relations between industry players and the Commission. He expressed confidence in Maida’s leadership to address the multifaceted challenges facing the industry. Other ATCON members also highlighted several industry challenges and urged the Commission to address them to drive telecom growth.
What You Should Know
Telecom operators, under the aegis of the Association of Licensed Telecom Operators of Nigeria (ALTON) and ATCON, have recently appealed to the NCC to allow them to implement tariff increases. They argue that the telecom industry is the only sector that has not reviewed its prices despite rising inflation and other economic realities. They blame regulatory constraints for preventing appropriate pricing adjustments. The NCC regulates telecom prices, and operators cannot implement any price changes without the regulator’s approval. The regulator has announced that a cost-based study is being conducted to determine if it would approve price increases for the operators.
