The Nigerian government attributes the strong growth in the ICT sector to its commitment to developing the digital economy and creating a conducive operating environment, among others. For 2022, the NCC budget had been set at N633.3 billion.
The budget of the Nigerian Communications Commission (NCC) for the financial year 2023 is set at 559 billion naira (1.3 billion USD). Approved last week by the Senate, this financial allocation should notably make it possible to stimulate the continued growth of the telecommunications sector.
Of the total amount of N559 billion, N86.7 billion is for recurrent expenditure, N5.2 billion for capital expenditure, N35 billion for special projects and N16 billion for the Benefits Fund. universal service (USPF). The remaining N416 billion will be transferred to the Federal Government on December 31, 2023.
The NCC’s 2023 budget is less than the 633.3 billion naira that has been allocated to the telecommunications regulatory authority for the financial year 2022. It is however significantly higher than the 46.48 billion naira allocated to the federal ministry of Communications and the Digital Economy for its activities in 2023.
The new budget should make it possible to accelerate the development of the information and communication technology (ICT) sector and increase its contribution to the national economy. According to figures from the National Bureau of Statistics (NBS), the ICT sector contributed 15.35% to Nigeria’s real gross domestic product (GDP) in the third quarter of 2022. This figure is higher than its contribution in the same quarter. of the previous year, when it represented 14.20%, but lower than that of the second quarter, when it represented 18.44%.
According to Umar Danbatta, executive vice president of the NCC, the 2023 budget includes plans for the deployment of 5G, which would provide greater network flexibility and result in a better quality of service and experience for consumers. He added that this would ultimately lead to increased revenue for telecom operators and the government.