Telecommunications connectivity in Nigeria increased by around 11.26 percent in 2022, despite a 46.89 percent drop in Foreign Direct Investment, according to the Nigerian Communications Commission.
According to the company’s recently issued ‘2022 Subscriber/Network Data Annual Report,’ operators added 12,882 more base stations in 2022, bringing the total number to 127,294 from 114,412 in 2021 and expanding the coverage of telecom services such as calls, Internet, and more.
The enhanced availability of telecom services was reflected in increased broadband penetration to 47.36 percent as of December 2022, up from 40.88 percent the previous year, as well as increased active subscriptions from 195.46 million in 2021 to 222.57 million.
Additionally, tele-density increased from 102.40 to 116.60 percent in 2022, while Internet subscribers increased from 141.97 to 154.85 million in the previous year.
According to the commission, a 2G network served 93.90% of the population, a 3G network served 86.82% of the population, and an LTE/WiMAX network served 80.86% of the population.
It read, “Telecom providers recorded a significant deployment of telecom infrastructure in 2022.”
The expansion of fiber (terrestrial fiber and submarine cable), which increased to 96,198 km last year from 86,057 km as of 2021, served as the foundation for the country’s data consumption to increase by 46.77% to 518,381.78TB.
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The development of the digital economy and of the nation’s communication services depends on the expansion of telecom access.
The NCC reported earlier this year that by 2022, there would be 27 million fewer Nigerians without access to telecommunications services, a decrease of 37.04 percent.
It stated that, as of the year’s conclusion, 53.1% of the recognized clusters in the nation lacked access to telecommunications.
Prof. Umar Danbatta, executive vice chairman and CEO of NCC, stated, “We have worked assiduously to ensure we bring telecom services to people living in rural, unserved, and underserved areas of this country, totaling 37 million people thanks to the consultancy that was carried out in 2013.
“By 2022, we will have decreased the number of clusters of access gaps from 207 in 2013 to 97.” As of right now, there are 27 million Nigerians, down from 37 million in 2013.
Even while access to telecoms increased, FDI into the industry decreased by 46.89% to $399.91 million in 2022 from $753.05 million the year before, indicating worsening economic conditions.
The NCC said that, according to data from the Central Bank of Nigeria, “Capital inflow (Foreign Direct Investment) into the Nigerian telecoms industry in the year 2022 was approximately $399.91 million, compared to $753.05 million as of the year 2021.”
Despite the ongoing implementation of 4G and 5G networks, foreign investment decreased in 2022. This has been attributed to a lack of foreign currency and government policy.
According to the NCC’s ‘National Policy for the Promotion of Indigenous Content in the Nigerian Telecommunications Sector’ document, the sector only brought in $399.91 million last year, but its yearly foreign outflow was estimated at $2.6 billion.
A recent statement from a sector expert stated, “Lack of FX has affected how we can import machinery into the country. This has also decreased investment. The issue of end-user certificates is another one. We require the approval of the security agencies, particularly the office of the National Security Adviser, in order to import some equipment into the nation.
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