Nigeria last year, missed out on about N350 billion (about $1.8 billion) in revenue expected to accrue to the country on completion of the digital migration exercise, a development analyst said could have been used to substantially reduce the ballooning federal budget deficit.
The International Telecommunication Union (ITU) had set June 17, last year as deadline for digital migration globally.
Digital analysts calculate that if Nigeria had prepared early enough and switched to digital broadcasting, the exercise would have created more frequency spectrums for broadcasting and communication activities which governed revenuement could have auctioned.
According to market observers, the freed-up spectrums would have also enabled broadcasters offer many more channels and created thousands of jobs in the next five years, in an economy battling with high unemployment rate.
Jenkins Alumona, a marketing communication expert who had organised discussions on the exercise, said digital migration, though moved to June next year, was an avenue that government could have made money from but did not take the opportunity immediately.
The National Broadcasting Commission (NBC) had last year said the planned switchover from analogue to digital television would have added about N350 billion yearly to the economy, creating over 55,000 jobs.
Authorities at the NBC DG further projected that long term economic impact on Nigeria of the migration would lead to a host of value added services such as news, information and video on demand, establishment of a leading digital economy, development of a whole TV and content ecosystem and N200 billion yearly boost from additional advertising, content and Nollywood income streams.
Director, Spectrum and Public Policy Africa, Global System for Telecommunications Association (GSMA) Mortimer Hope, said in a monitored report that Nigeria’s economic benefits are huge, as it stands to reap about $2.2 billion out of the total $45 billion calculated to accrue to African nations from the exercise.
A 2010 report conducted by the United Nations showed that investment in broadband boosts GDP.
In developing countries, for instance, every 10 percent increase in broadband penetration could contribute an extra 2.5 percent to GDP growth.
But according to analysts, Nigeria which has ignored several calls for economic diversification, appears to have not expected the slide in the oil price, to as low as $32 from about $103 in 2013 per barrel, which has created a huge gap in its 2016 budget for which it is now seeking international loans to fill.
The government of President Muhammadu Buhari is seeking $2.5 billion in loans from the World Bank and $1 billion from the ADB to help cushion the effect of falling in oil prices.
