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SIM Card Manufacturing Market In Nigeria Is Worth N55 Billion, According to Danbatta

Following the inaugural Nigerian Telecommunication Indigenous Content Expo (NTICE), Professor Umar Danbatta, the executive vice chairman of the Nigerian Communications Commission (NCC), has listed significant accomplishments in the country’s telecommunications sector.

Sim Cards (PHOTO; Sourced By Techrectory.
Sim Cards (PHOTO; Sourced By Techrectory.

NCC measures the benefits of the import ban on SIM cards. He emphasized that the policy, which was unveiled at the inaugural NTICE event last year and prohibits the importation of whole-body SIM cards, has produced economic benefits.

According to Danbatta, this ban of the sim card has not only reduced the need for foreign currency in the nation but has also brought in more than N55 billion in revenue for the regional SIM card producers.

Speaking at the current NTICE 2023 conference, the EVC cited the creation of both direct and indirect jobs as a result of the import ban on whole-body SIM cards, which was imposed by Engineer Ubale Maska, Executive Commissioner, Technical Services at NCC.

“Nigeria has produced solutions that uniquely cater for our challenges and aspirations, thanks to our diverse culture, talents, and perspectives, as well as our rich history of innovation, resilience, and creativity,” the speaker stated.

Based on the industry’s many accomplishments, he declared that the Nigerian telecom sector is without a doubt one of the main drivers of the nation’s socioeconomic development.

With a 12.45% GDP contribution in Q4 2020, it is appropriate to note that the sector’s performance was crucial in pulling Nigeria out of its recession. The Q1 2023 figure increased to 14.13%.

With a combined market capitalization of more than N10.45 trillion, two (2) of Nigeria’s most valuable listed companies are located in the sector, according to Danbatta.

Remember that in order to accelerate the rollout of Fifth Generation (5G) services on sim card in Nigeria, the Commission sold and granted licenses to three operators in the 3.5GHz Spectrum band in 2021 and 2022, bringing in more than USD$820 million in revenue. Nigeria now appears ahead of many nations in Europe, Africa, and the Middle East on the global 5G map.

Notably, tariffs have not changed despite an increase in the cost-of-service provision to telecom operators, even though the quality of experience and quality of service in Nigerian telecommunications services have continued to improve.

We must embrace indigenous content and value creation within the telecoms value chain in order to maintain and further improve the quality of experience and quality of service in Nigerian telecommunications services; failing which, an increase in telecom rates will be unavoidable.The Commission is totally dedicated to supporting the Federal Government’s efforts to implement all required policies and elevate the Nigerian economy to a sustainable level.

The National Policy for Promotion of Indigenous Content in the Nigerian Telecommunications Sector was intended to be driven by the Nigeria Office for Development of Indigenous Telecoms Sector (NODITS), which was established in July 2021 as a Special Purpose Vehicle under the Commission. The Office was assigned four areas of focus: manufacturing, human capacity, research and development (R&D), and software and services development for the telecom industry.

“I’m pleased to tell you that NTICE is one of the accomplishments of NCC through NODITS because it has become the industry’s premier indigenous content event in addition to advancing Pillar number 5 (Strategic Partnering) of the Strategic Management Plan SMP 2020–2024 of the Commission.”Additionally, the Commission has provided incentives for the production of Corrugated Optical Duct (COD), which will shield our fiber infrastructure from the constant cutting that our service providers must perform.

The Commission is equally dedicated to consistently assisting Micro, Small, and Medium-Sized Enterprises (MSMEs) and Innovators in advancing our gifted youth and their endeavors through Angel Investments, R&D assistance, Investor exposure, and sponsorship of regional and global tech events.

He emphasized once more that the NTICE 2023 platform is a celebration of these accomplishments and a proof of the inventive spirit of Nigerians.

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See also Telecom Operators Unite in Opposition to NCC's Fund Repatriation Guideline

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Written by Grace Ene

Author for Techrectory.

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