5G spectrum auctions generated $547 million for Nigeria in 2022

President Buhari extends the use of old N200 notes till April to ease Naira scarcity

President Muhammadu Buhari announced that this year’s 5G spectrum auctions had brought in $547 million for Nigeria.

This has demonstrated that the IT sector’s 18.47% contribution to the nation’s GDP has significantly impacted economic growth. ICT increased GDP by roughly three times as much as oil and gas in Q2 2022. In Q2 2022, ICT contributed almost 3 times as much as oil & gas to GDP.

The announcement was made on Tuesday at the inauguration of the National Shared Services Centre in Abuja, a one-stop shop for Ministries, Departments, and Agencies (MDAs) to interact with citizens, as well as a Cyber Security Operations Centre, Network Centre, and Call Centre.

Read Also: 5G: NCC Convenes Stakeholder Forum for Auction in December

In response to the continuing growth and the contribution of the Information, Communication, and Technology Sector (ICT) toward economic diversification, he said,

As part of our efforts to expand our digital infrastructure; we increased our 4G base stations from 13,823 to 36,751 from August 2019 to date, and this has increased the percentage of 4G coverage across the country from 23 per cent to 77.52 per cent also from August 2019 to date.

Following the launch of 5G services, the digital economy has succeeded in increasing government revenue. In terms of auction sales, it has performed better than expected, the president said in a statement.

If you recall correctly, the Nigerian Communications Commission (NCC) had previously stated that the Intention-to-Bid Deposit for the upcoming 3.5GHz spectrum auction for 5G would cost $27.36 million (IBD).

Read Also: NCC Announces Publication of Final Information Memorandum on 3.5GHz Spectrum Auction

President Buhari’s 5G contribution to the digital economy sector during his administration

In a ministerial retreat presided over by the President, it was concluded that the digital economy sector had earned 594 per cent of its aim from the 2019 baseline. Today, the sector has already made more than $547 million from selling the 5G spectrum.

5G spectrum auctions generated $547 million for Nigeria in 2022
5G: President Muhammadu Buhari and Isa Pantami

The president also boasted that his administration’s actions, such as the suspension of excise duty in telecoms, have significantly contributed to the sector’s growth.

He continued by saying that these initiatives are a part of the administration’s efforts to position the digital economy as a crucial facilitator for our economy’s diversification and as a driver for the transformation of every sector of the economy.

He claimed that some policies implemented under his watch had greatly aided the sector’s expansion, including the introduction of the National Digital Economy Policy and Strategy for a Digital Nigeria.

The National Policy on Virtual Engagements for Federal Public Institutions, another policy, was approved on October 14, 2020, enabling the FG to establish online government meetings formally.

We aim to make Nigeria a global hub for digital talent. It was an executive bill that was initiated by the Honourable Minister of Communications and Digital Economy.

In addition, he mentioned that digital identity enrollments have grown from 39 million in October 2020 to over 92 million, and this administration’s commitment to encouraging data promotion and privacy is gaining worldwide recognition.

Read also: President Buhari commissions National Shared Service Centre to fight cybercrime

President Muhammadu Buhari has also commissioned a National Shared Services Centre in Abuja. The Center, which houses a Cybersecurity Operations Centre, Network Centre & Call Centre, is a one-stop-shop for Ministries, Departments and Agencies of the government to interface with Nigerians.

President Buhari reiterated the administration’s commitment to developing an unparalleled digital economy enhanced by a sound ICT sector. Also, he emphasized the administration’s commitment to combat cybercrime issues in the country.

The President said the National Shared Services Centre will provide services that are “swift, secure and seamless.’’

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