Telecoms sector contributes N2.508trn to Nigeria’s GDP

*The Nigerian Communications Commission highlights how the Telecoms and Information Services sector has boosted the West African country’s GDP by 14.13 in Q1 2023, stressing the industry growth statistics are showing ‘an impressive record of contributions to the economy’

Isola Moses | ConsumerConnect

The Telecommunications and Information Services sector in Nigeria has continued to add value to the West African country’s Gross Domestic Product (GDP).

ConsumerConnect reports the important industry in the first quarter (Q1) 2023, delivered N2.508 trillion in terms of financial value contribution to the country’s GDP, representing 14.13 percent.

The National Bureau of Statistics (NBS) latest figures released indicate, that the sector recorded a 4.3 percent increase from its performance Q4 2022, when it recorded 13.55  percent.

Compared on a year-on-year basis, the Bureau disclosed the growth showed a positive progression from 12.94  per cent Q1 2022, to the 2023 figure of 14.13, which is an approximate growth of 9.19 percent.

Besides, the NBS stated the percentage of telecoms contribution to GDP was calculated from 46 distinct sectors of the economy, which constitute telecoms and information services baskets.

The Nigerian telecoms industry has continued its show of positive outlook, which is credited to the innovative and predictable telecom regulatory environment promoted, and implemented by the Nigerian Communications Commission (NCC), the industry regulator.

Some highlights of telecoms sector performance, by NCC

In regard to some of the telecoms specific feats, Mr. Reuben Muoka, Director of Public Affairs at NCC, Thursday, June 8 stated one of the key highlights of the telecoms industry performance within the period was the generation of $820.8 million for the Federal Government from 5G spectrum licences fees paid by three eventual winning mobile operators, MTN, MAFAB and Airtel.

The Commission said following the issuance of the licences December 2021 to MTN and MAFAB, both companies had since launched 5G services in the Nigerian ecosystem.

However, Airtel Nigeria, which received its licence December 2022, is set to launch services June 2023, according to NCC.

Muoka also noted another major development in the telecoms sector was the launch of Starlinks Broadband services, a satellite-based wireless broadband services with potential nationwide coverage.

The activation of the company’s services was sequel to the issuance of licence to Elon Musk-owned SpaceX by the Commission.

The telecoms regulator further said: “The services are now available in different parts of the country.”

The Commission also stressed the growth statistics of the telecoms industry are showing “an impressive record of contributions to the economy.

“The number of phone subscribers as at April 2023, stood at 223.6 million subscribers, scoring a teledensity of 117 percent.”

The NCC Director of Public Affairs as well disclosed the Internet subscribers for the same period were 157 million, while Broadband subscriptions stood at 92 Million, translating to 48  percent Broadband penetration in Nigeria.

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