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Telecoms 14.58 percent contribution to Nigeria’s GDP, industry growth and sustainability

Dr. Aminu Maida, Executive Vice-Chairman and CEO of NCC

*Dr. Aminu Maida, Executive Vice-Chairman and CEO of the Nigerian Communications Commission asserts with 14.58 percent contributions to Nigeria’s Gross Domestic Product, the telecommunications industry ‘has done well’ for the West African country, as the sector is yet pushing for ‘long-term sustainability’ despite critical operational challenges in the economy

Gbenga Kayode | ConsumerConnect

Sequel to the recent industry growth trajectory, Dr. Aminu Maida, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of the Nigerian Communications Commission, and Dr. ’Bosun Tijani, Honourable Minister for Communications, Innovation and Digital Economy (FMCIDE), have applauded the performance of the telecoms sector despite pressing operational challenges in the country’s economy.

ConsumerConnect reports the latest update on telecoms industry statistics published by the NCC indicated the telecommunications sector recorded 14.58 percent contribution to Nigeria’s Gross Domestic Product (GDP), in comparison to 14.13 percent the industry contributed to the GDP of the West African country Q1 2023.

Telecoms has done well for Nigeria, affirms Maida

Speaking Friday, June 28, 2024, at a reception held in his honour by the Association of Telecommunications Companies of Nigeria (ATCON), in Lagos, Dr. Maida, said with 14.58 percent contribution to the country’s Gross Domestic Product, the telecommunications industry “has done well for the country.”

Graph: NCC

In acknowledging the extant challenges facing the industry players, the EVC/CEO of the telecoms sector regulatory Commission revealed though Nigeria has close to 200 million connected lines for subscribers, more than half of the figure are on 2G technology.

He averred: “So, there is a lot of work to be done, especially in addressing challenges faced by MNOs (Mobile Network Operators) and OEMs (Original Equipment Manufacturers) for long-term sustainability.”

Maida also told his audience at the forum, in Lagos, that “I know the challenges are acute, but we are looking at them, working with the Minister. The industry has done well for the country, contributing about 14 percent to the GDP.”

On GDP value in ICT, telecoms and information services sub-sector, by Tijani

Likewise, in his recent presentation of the Ministry’s performance, titled, “On Nigeria’s GDP & Growth Rate – A Focus On The ICT Sector”, Dr. ’Bosun Tijani, Honourable Minister for Communications, Innovation and Digital Economy (FMCIDE), affirmed that “it’s been great to see the recent interest in the performance of our Ministry and the digital economy as a whole.”

In connection with an objective use of the published facts on his Ministry, based on National Bureau of Statistics (NBS) statistics, Dr. Tijani disclosed the data apparently outlined the economic trends in his time in office, and more importantly the impact of some of the initiatives of the FMCIDE-wide Ministry, Departments and Agencies (MDAs).

The Minister explained that in the first three quarters of President Bola Ahmed Tinubu’s term in office, the Ministry has witnessed “growth in the nominal GDP Value of the Information and Communications Technology (ICT) Sector from N7.1 trillion (Q3 2023) to N8.4 trillion (Q4, 2023) and a ‘patterned fall’ to N7.9 trilllion in Q1 2024.”

According to him, the country, historically, has seen this “patterned fall” in Q1 occurring in seven of the last eight years in the telecoms sector of the Nigerian economy.

Highlighting the specific contribution of telecoms in the first quarter of this year, Tijani also said: “The nominal GDP value in the telecoms and information services sub-sector in Q1 2024 (N6.2 trillion) is 10.81 percent higher than the start of my term in Q3 and also higher compared to Q1, 2023 (N5.6 trillion).

“A review of the last seven quarters, shows a decline in growth rate since Q3, 2022 with the sharpest decline happening between Q1, 2023 to Q2, 2023.

He added that his presentation of the Ministry’s performance highlights “how we identified this decline in growth rate, which we must again reiterate, does not mean a decline in the sector, and the subsequent interventions and approach we have taken to successfully start the reversal of the decline.”

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