{"id":21255,"date":"2024-05-09T09:01:00","date_gmt":"2024-05-09T08:01:00","guid":{"rendered":"https:\/\/www.gsma.com\/newsroom\/?p=21255"},"modified":"2025-11-12T15:40:06","modified_gmt":"2025-11-12T15:40:06","slug":"collaborative-action-needed-to-boost-digitalisation-in-nigeria-and-support-economic-growth","status":"publish","type":"post","link":"https:\/\/www.gsma.com\/newsroom\/press-release\/collaborative-action-needed-to-boost-digitalisation-in-nigeria-and-support-economic-growth\/","title":{"rendered":"Collaborative Action Needed to Boost Digitalisation in Nigeria and Support Economic Growth"},"content":{"rendered":"\n<p class=\"has-text-align-center\"><em>Telecoms sector unveils estimated 33 trillion NGN contribution in 2023, with the mobile industry accounting for 13.5% of Nigeria\u2019s total GDP last year<\/em>&nbsp;<\/p>\n\n\n\n<p><strong>9<sup>th<\/sup> May 2024, Lagos:\u202f<\/strong>In the face\u202fof\u202fserious economic and developmental challenges, the\u202fNigerian Government\u202fthrough the Strategic Blueprint of the Federal Ministry of Communications, Innovation, and Digital Economy has identified digitalisation as a key enabler to stabilise and strengthen the macroeconomic environment. It is pursuing structural\u202freforms, creating\u202fan environment conducive to private and public sector growth and job creation, while concurrently recognising the need to diversify away from the reliance on the oil and extractives sector. This shift towards diversification underscores the digital sector&#8217;s significant role in steering Nigeria towards a more resilient and dynamic economic future.\u00a0<\/p>\n\n\n\n<p>The\u202flargest contribution of the digital sector to Nigeria\u2019s overall GDP is through the impact digitalisation has on the productivity of other sectors.\u202fFor example, in the short-term,\u202fmeasures such as cash transfers to citizens can be done more\u202fquickly and\u202fefficiently\u202fusing mobile money payment platforms. Digital technologies also boost productivity in the agricultural sector through increased use of agricultural inputs, better storage facilities and\u202fmore coordinated support across agencies with the use of digital technologies to communicate and support\u202fsmall-scale farmers.\u202f&nbsp;<\/p>\n\n\n\n<p>It is estimated that, in 2023,\u202fthe telecoms sector was contributing\u202f13.5% to\u202fthe\u202fGDP\u202fof Nigeria.\u202fConsidering the direct and indirect contribution of the mobile ecosystem, as well\u202fas\u202fthe productivity impact throughout the economy,\u202fthe telecom\u202fsector\u2019s\u202fcontribution to\u202fNigeria\u2019s overall economic activity is\u202fmuch greater, estimated at\u202f33 trillion NGN\u202fin\u202f2023, with 2.4\u202ftrillion NGN in tax revenue contributions.\u202f&nbsp;<\/p>\n\n\n\n<p>The GSMA today published its latest report \u2018<a href=\"https:\/\/www.mtn.com\/case-study\/gsmas-digital-economy-report-on-nigeria\/\" target=\"_blank\" rel=\"noreferrer noopener\">The role of mobile technology in driving the digital economy in Nigeria<\/a>\u2019 which addresses the challenges hindering the growth and development of the telecommunications industry and the crucial role of the mobile sector in Nigeria&#8217;s economic development. Connectivity to mobile services, including Mobile Money is the foundation on which digitalisation is built. The Mobile Network Operators (MNOs) are committed to investing to support the realisation of the digitalisation ambitions that will unlock economic growth and development in the country.<\/p>\n\n\n\n<p><strong>Navigating a complex operating environment<\/strong>&nbsp;<\/p>\n\n\n\n<p>To unlock these economic opportunities, connectivity and mobile financial services are crucial foundations. The GSMA\u2019s report emphasises that while 29% of Nigerians are\u202fregularly using mobile internet, there remains untapped potential, as 71% are not accessing\u202fthese services on a regular basis. An improved policy environment has the potential to help\u202fthe industry boost coverage and adoption, resulting in 15 million additional internet users by 2028.\u202fHowever, the sector faces challenges to infrastructure deployment.&nbsp;&nbsp;<\/p>\n\n\n\n<p>These include:&nbsp;<\/p>\n\n\n\n<ul>\n<li>Complex and costly process of securing Rights of Way (RoW) significantly increases the time and costs associated with rolling out infrastructure.&nbsp;&nbsp;<\/li>\n\n\n\n<li>The complex tax environment in Nigeria, providing for high and increasing costs of tax compliance because of the complex and overlapping tax structure within the country.&nbsp;<\/li>\n\n\n\n<li>Increasing costs are making it difficult for the industry to maintain sustainable levels of investment.<strong> <\/strong>The primary driver of this has been increases in the cost of power for sites due to the rapid increases in the price of fuel, increased government fees and levies, and increased demand for forex, in an import-dependent environment, due to contractual obligations for network infrastructure and services that are denominated in USD.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p><strong>Transforming Nigeria into a digital economy<\/strong>&nbsp;<\/p>\n\n\n\n<p>An enabling policy and regulatory framework will be critical to realising the full potential of Nigeria\u2019s digital transformation, as recognised in Nigeria\u2019s Strategic Plan 2023 \u2013 2027 as well as the Federal Ministry\u2019s National Broadband Alliance for Nigeria (NBAN). Without universal access to digital connectivity, a broader digital transformation of the Nigerian economy is not possible.&nbsp;&nbsp;<\/p>\n\n\n\n<p>It is clear that the mobile industry is a key partner for the government in achieving its objectives and can contribute to some of the key elements of the government\u2019s plan. The value of this contribution can significantly increase with the necessary support from government required to overcome the obstacles outlined above.&nbsp;&nbsp;<\/p>\n\n\n\n<p>To this end, the report recommends initiatives to support policymakers in creating an economic and regulatory environment that supports growth, investment, and competition. These include implementing a legal framework for Critical National Infrastructure to address challenges in building network infrastructure; simplifying and improving the process for issuing RoW and standardising it across the country; reducing the industry\u2019s tax burden to help cut operating costs; and creating a regulatory environment that supports sustainable investment.<\/p>\n\n\n\n<p>Angela Wamola, Head of Sub-Saharan Africa at the GSMA, said: \u201c<em>High-speed connectivity is the bedrock of any digital nation, and the Nigerian government recognises the mobile industry\u2019s role in laying key foundations on which digital transformation is built. Future policies should be geared towards reducing the cost and complexity of infrastructure rollout to encourage investment and boost the adoption of mobile broadband. The impact of such actions would go far beyond mobile, driving productivity gains across the economy and creating millions of new jobs in Nigeria.\u201d<\/em>&nbsp;<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong>-ENDS-<\/strong><\/p>\n\n\n\n<p><strong>About GSMA<\/strong>&nbsp;<br \/>The GSMA is a global organisation unifying the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change. Our vision is to unlock the full power of connectivity so that people, industry, and society thrive. Representing mobile operators and organisations across the mobile ecosystem and adjacent industries, the GSMA delivers for its members across three broad pillars: Connectivity for Good, Industry Services and Solutions, and Outreach. This activity includes advancing policy, tackling today\u2019s biggest societal challenges, underpinning the technology and interoperability that make mobile work, and providing the world\u2019s largest platform to convene the mobile ecosystem at the MWC and M360 series of events.&nbsp;&nbsp;<\/p>\n\n\n\n<p>We invite you to find out more at\u202f<a href=\"https:\/\/www.gsma.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">gsma.com<\/a>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Telecoms sector unveils estimated 33 trillion NGN contribution in 2023, with the mobile industry accounting for 13.5% of Nigeria\u2019s total GDP last year&nbsp; 9th May 2024, Lagos:\u202fIn the face\u202fof\u202fserious economic and developmental challenges, the\u202fNigerian Government\u202fthrough the Strategic Blueprint of the Federal Ministry of Communications, Innovation, and Digital Economy has identified digitalisation as a key enabler [&hellip;]<\/p>\n","protected":false},"author":100,"featured_media":21256,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_jetpack_memberships_contains_paid_content":false,"jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[3],"tags":[],"algolia_discover_type":[6627],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.0 (Yoast SEO v22.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Collaborative Action Needed to Boost Digitalisation in Nigeria and Support Economic Growth - Newsroom<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.gsma.com\/newsroom\/press-release\/collaborative-action-needed-to-boost-digitalisation-in-nigeria-and-support-economic-growth\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Collaborative Action Needed to Boost Digitalisation in Nigeria and Support Economic Growth\" \/>\n<meta property=\"og:description\" content=\"Telecoms sector unveils estimated 33 trillion NGN contribution in 2023, with the mobile industry accounting for 13.5% of Nigeria\u2019s total GDP last year&nbsp; 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