Nigeria which has one of the largest and vibrant telecom markets in Africa, is now embarking on a new broadband infrastructure investment project worth $ 732 million to boost its economy which is currently recovering from its 2016 economic contraction, Bloomberg news reveals.
As the pace of the Nigeria economy remained soft in 2019 soon after the general elections, economy outlook of the populous nation in Africa shown by African Development Bank (AfDB) indicates that, the GDP growth is expected to sustain a gradual growth in 2020, anticipated to grow above 2.3 per cent, which is quicker than 2019 and below 3 per cent.
According to Bloomberg, the project will be executed within four years as the Nigeria government trains its focus on enhancing the nationwide coverage.
According to the chief executive officer of the Nigerian Communications Commission (NCC) Umar Danbatta, the government of Nigeria will offer over $ 179 million for the project and six private infrastructure companies will provide the remaining funds, under a public-private partnership.
“There will be data everywhere in the country and it will be cheap,” he added.
Africa’s largest economy is set to expand its economic horizons, as its teledensity landscape keeps growing over 128 million in May 2014 to over 190 million in November 2019, NCC statistics reveal.
More importantly, the sector enhancement stands to improve the nation’s economy. NCC statistics show that, over the period of 2019 quarters, the sector has contributed 9 10 10 per cent to the country’s GDP respectively.
Further, Bloomberg revealed that Nigeria plans to roll out an additional 30,000 kilometers (19,000 miles) of fiber across its 774 local governments, taking the total to 71,000 kilometers by 2024, increasing the chances of the nation’s penetration rate to rise by 65 per cent from 38 per cent.
The commission plans to start the project this year after obtaining government approval.
READ: Nigeria remains Africa’s largest smartphone market