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Federal Government Targets 100% Telecom Industry Revenue Increase by 2027

Dr. Bosun Tijani

The federal government has set an ambitious goal to double its revenue from the telecommunications sector by 2027, as revealed in a blueprint released by the Minister of Communications and Digital Economy, Dr. Bosun Tijani.

The government's revenue from the telecom industry includes Company Income Tax (CIT) from operators, VAT from their services, and income generated from spectrum sales.

Notably, the Nigerian Communications Commission (NCC) contributed N189 billion to the government's coffers in the previous year through spectrum sales.

To achieve this revenue increase, the Ministry plans to overhaul the National Policy on Telecommunications, last revised in 2000. This update will adapt to technological advancements, market changes, and standards.

The focus will be on driving broadband development and addressing core issues such as spectrum management, convergence, universal access, broadband penetration, net neutrality, and Quality of Service (QoS).

The Ministry has set specific targets, including a 15% year-on-year increase in investment in Nigeria's telecommunications sector.

They also aim to reduce the percentage of unconnected rural Nigerians from 61% to below 20% by 2027, improve Quality of Service (QoS) by 50% by the end of 2024, and increase the telecommunications sector's net GDP contribution to 22% by 2027.

These initiatives align with the growth observed in the ICT sector, which recorded a 11.64% growth rate in Q2 2023, primarily driven by the telecommunications sub-sector, contributing significantly to the GDP.

The telecom industry's influence extends to various sectors of the Nigerian economy and includes major players like MTN, Globacom, Airtel, 9mobile, and Internet Service Providers (ISPs).

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