The President of Nigeria, Muhammadu Buhari has stated that the auctioning of the 5G spectrum alone has earned the federal government $547 million, further enhancing options for financing development, praising the digital economy’s role in fostering growth, producing jobs, and generating cash for the nation.
He said that he had approved the suspension of the proposed 5 percent excise duty on telecommunications services in September because it would have put a hardship on the general public. He also said that it was done to support the expansion of the digital economy sector and to lighten the burden on the general public.
Buhari made this statement at the opening of the National Shared Services Centre, a one-stop shop for ministries, departments, and agencies to interact with citizens that also houses a Cybersecurity Operations Centre, Network Center, and Call Center, according to a statement by Special Adviser to the President on Media and Publicity, Femi Adesina.
The President said the National Shared Services Centre will provide services that are ‘swift, secure and seamless’’, noting that the Information, Communication and Technology Sector (ICT) had accelerated diversification of the economy and Q2 Gross Domestic Product Report by the National Bureau of Statistics showed the extent of growth, with the ICT contributing an unprecedented 18.44 percent to the GDP, close to three times the 6.33 percent contribution of the oil sector in the same quarter.’
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‘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 percent to 77.52 percent, also from August 2019 to date. We have also followed this up with roll-out of 5G services.
‘It is noteworthy that the digital economy sector has excelled in generating revenue for the government. In particular, at the Ministerial Retreat that I chaired from the 18th to 19th of October 2022, our independent analysts adjudged the digital economy sector to have generated 594 percent of its revenue target from the 2019 baseline. This is very commendable. As part of these unprecedented achievements, the sector generated over $547 million dollars from the auctioning of the 5G spectrum alone,’ he said.
President Buhari said he was happy to unveil and commission a number of initiatives that further express the Government’s commitment to develop a sustainable digital economy in Nigeria.
‘These initiatives are part of our administration’s efforts to position the digital economy as a key enabler for the diversification of our economy and as a catalyst for the transformation of every sector of our economy.
‘You will recall that I unveiled and launched the National Digital Economy Policy and Strategy for a Digital Nigeria on the 28th of November, 2019 and I am very proud of the giant strides and the unprecedented progress that we have made in in less than one year since the unveiling.
‘To ensure that the digital economy sector remains successful and in order to reduce the burden on citizens, I recently approved the suspension of the proposed excise duty in the telecoms sector, as any initiative that will lead to hardship for the citizens would not be pursued,’’ he said.
The President said the digital economy ensured continuity in governance during the restrictions that came into force as a result of the COVID-19 pandemic.
President Buhari also noted partnerships with leading global ICT companies to train Nigerians in cutting edge and high demand digital skills.