How telecom investment grew from $500m to $75bn in 25 years – Rewane
Managing Director of Financial Derivatives Company and Chairman of FCMB, Bismarck Rewane, has described the telecommunications revolution as one of the most significant transformations in Nigeria’s economy in the last 25 years. He said combined investment in the telecommunications sector was about $500 million at the beginning of the period but had grown to more […]
Bismarck Rewane, the Managing Director of Financial Derivatives Company and Chairman of FCMB, has highlighted the immense impact of telecommunications on Nigeria's economy over the past 25 years. Rewane stated that combined investment in the sector has skyrocketed from $500 million to more than $75 billion, illustrating the significant economic transformation that has taken place.
He attributes the growth to the entry of MTN Nigeria in 2001, which coincided with the liberalization of the sector, enabling widespread access to communication. In 2000, Nigeria had only about 250,000 fixed telephone lines under the state-owned monopoly NITEL. Today, the country boasts 177.4 million active mobile subscriptions and 144.8 million active internet subscriptions.
Rewane emphasized the dramatic increase in teledensity, which has risen from a mere 0.4% to nearly 80%, signifying the depth of mobile communication integration into daily life. This transition represents a pivotal shift where connectivity has become a norm for the vast majority of Nigerians.
Beyond the direct investment in telecommunications companies, the economic impact is vast and far-reaching. Rewane described telecom operators as critical economic infrastructure and growth catalysts, stressing their contribution extends beyond GDP figures. He argued that the full economic value of telecommunications lies in the enabling of various sectors such as banking, commerce, healthcare, transportation, and education.
The economist highlighted that removing telecommunications from the system is not just a loss of a percentage of GDP. It would effectively cripple the entire system, as the sectors rely heavily on seamless communication and connectivity. Thus, while the nominal economic contribution of telecommunications might be quantified, its effective value is revealed through the numerous interconnected economic activities it supports.
Written by urgent.news from Daily Trust's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
