Telecoms Contribution to GDP Rises by 10%, Hits 7trn in 2022
The National Bureau of Statistics recent report has shown that the contributions of telecommunications to the nation’s real Gross Domestic Product increased by 10.52 per cent year-on-year to hit N7.28tn in the first nine months of 2022.
In the corresponding period of 2021, the sector contributed N6.58tn to real GDP. The sector contributed N11.99tn to nominal GDP within the period under review, a 17.83 per cent y-o-y increase from the N10.18tn it was in the corresponding period of 2021.
The NBS explained the gross output of telecoms and information services as, “Revenue from telephone, telex, facsimile, telegraph, and other income from satellite and internet services.
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“Intermediate consumption: Transit fees, operational expenditure, minor repairs and maintenance, and other expenses.”
The statistics body categorises telecoms under the information and communication sector which comprises of telecommunications and information services; publishing; motion picture, sound recording and music production; and broadcasting.
Describing the contribution of the ICT sector to GDP in the third quarter of 2022, the NBS said, “In nominal terms, in the third quarter of 2022 the sector growth was recorded at 20.32 per cent (year-on-year), a 9.15 per cent points increase from the rate of 11.17 per cent recorded in the same quarter of 2021, and 6.20 per cent points higher than the rate recorded in the preceding quarter.
“The quarter-on-quarter growth rate recorded in the third quarter of 2022 was -8.25 per cent. The Information and Communications sector contributed 9.58 per cent to the total nominal GDP in the 2022 third quarter, higher than the rate of 9.22 per cent recorded in the same quarter of 2021 and lower than the 12.12 per cent it contributed in the preceding quarter.
“The sector in the third quarter of 2022 recorded a growth rate of 10.53 per cent in real terms, year-on-year. From the rate recorded in the corresponding period of 2021, there was an increase of 0.87 per cent points. On a quarter-on-quarter, the sector exhibited a growth of -8.70 per cent in real terms.
“Of total real GDP, the sector contributed 15.35 per cent in the 2022 third quarter, higher than in the same quarter of the previous year in which it represented 14.20 per cent and lower than the preceding quarter in which it represented 18.44 per cent.”
The impact of telecoms on the GDP has been attributed for helping the nation navigate a recession storm recently. And while this contribution has been growing, the Federal Government has set its sight on a 30 per cent overall sector contribution to GDP by 2025.
It disclosed this in its Nigeria Medium-Term National Development Plan 2021-2025: Volume II. It also stated that it intends to increase the share of digital economy jobs by 30 per cent.