FDIs in telecoms hit $12b in four years, says Ndukwe
By Helen Oji
BETWEEN 2005 and September 2009, Nigeria generated over $12 billion (N1.8 trillion) from its Foreign Direct Investments (FDIs) in the telecommunications sector.
Besides, Nigeria was within the period rated as one of the top ten receivers of FDI in the African sub-region.
Executive Vice Chairman of the Nigerian Communications Commission (NCC), Ernest Ndukwe, disclosed while delivering key note address at a two day specialised compliance workshop on SAS 25: "Accounting on telecommunication activities," organised by National Accounting Standard Board (NASB) in Lagos recently.
Ndukwe explained that the Nigerian telecommunication sector has gone from a tele density of 0.4 in 2000 to about 50 per cent as at September 2009.
Represented by NCC Controller, Mr Ephraim Nwokonnaya, Ndukwe said digital mobile network now covers 36 states of the federation, adding that digital mobile has not been the main driver of market growth in the Nigerian telecommunications sector.
He said the total subscriber base is now 70,337,600 as at the end of September 2009.
"This revolution has had direct impact on the sustainable development of the key sector such as financial services, oil & gas, agriculture, maritime/shipping, trade and commerce among others," said Ndukwe.
He explained that the African telecommunication industry hither to was among the least developed in the world, accounting for only two per cent of the world's phone line.
This he said became a major concern to the international community as it hinders the economic growth of the continent.
He however, explained that the Nigerian telecommunication sector has recorded tremendous success since the introduction of fixed wireless operation, which subsequently paved way to digital mobile services operation.
With this, Nigeria joined the league of nations with telecommunication density of over 50 per cent with an average growth of over eight million telephone lines yearly from 2001 to 2009.
To consolidate on this achievement, Ndukwe said there is need for regulators to stick to international best practice, adding that anything contrary to this would act as disincentive for investment
He further stated that uniformity in the definitions and treatment of financial transactions within the sector by stakeholders would also help to consolidate the gains of the revolution made in the telecommunication sector.
