Telecoms Sector Contributed N2.508tn to GDP in Q1 2023

The telecommunications and Information Services sector in Nigeria in the first quarter in 2023, contributed N2.508 trillion to the nation’s Gross Domestic Product (GDP).

This represented 14.13 per cent of the GDP, according to statistics released on Thursday by the National Bureau of Statistics (NBS).

The statistics showed that the sector recorded a 4.3 per cent increase from its performance in the last quarter of 2022, when it recorded 13.55 per cent.

When compared on a year-on-year basis, the growth showed a positive progression from 12.94 per cent in the first quarter of 2022 , to 14.13 per cent in 2023, which is an approximate growth by 9.19  per cent. 

The percentage of telecom contribution to GDP was calculated from 46 distinct sectors of the economy, which constitute telecom and information services baskets.

Analysing the NBS statistics, the Nigerian Communications Commission (NCC), in a statement it released on Thursday, that was signed by its Director of Public Affairs, Mr. Reuben Muoka, stated that the Nigerian telecom industry has continued its show positive outlook, which was credited to the innovative and predictable telecom regulatory environment promoted, and implemented by the NCC.

According to the statement, one of the key highlights of the telecom 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 operators, MTN Nigeria, Mafab Communications and Airtel Nigeria

“Following the issuance of the licences in December 2021 to MTN and MAFAB, both companies have launched 5G services. Airtel, which received its licence in December 2022, is set to launch services this month, June 2023.

“Another major development in the sector was the launch of Starlinks broadband services, a satellite-based wireless broadband services with potential nationwide coverage.

“This followed the issuance of licence to Elon Musk-owned SpaceX by the Commission. The services are now available in different parts of the country,” the statement said.

Meanwhile, the growth statistics of the telecoms industry showed an impressive record of contributions to the economy. The number of phone subscribers as at April 2023, stood at 223.6 million subscribers, with a tele-density of 117 per cent.  Internet subscribers for the same period were 157 million while broadband subscriptions stood at 92 million, translating to 48  per cent  broadband penetration in the country.

Emma Okonji

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