Telecom Sector Contributes N2.5trn to GDP In Q1, 2023
The Telecommunications and Information Services sector in Nigeria contributed N2.508 trillion, representing 14.13 per cent, to the nation’s gross domestic product, GDP, in the first quarter of 2023 (Q1’23).
The National Bureau of Statistics (NBS) report showed that the sector’s performance was an improvement over the 13.55 percent recorded by the sector in the last quarter of 2022 (Q4’22).
When compared on a year-on-year basis, the growth showed a positive progression from 12.94 percent in the first quarter of 2022.
The percentage of telecom contribution to GDP was calculated from 46 distinct sectors of the economy, which constitute telecom and information services baskets.
Reacting to this, the Nigerian Communications Commission, NCC, said the Nigerian telecom industry has continued its show of positive outlook, which it credited to the innovative telecom regulatory environment promoted and implemented by it.
NCC, in a statement yesterday, said: “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 licenses fees paid by three eventual winning operators, MTN, MAFAB and Airtel.
“Following the issuance of the licenses in December 2021 to MTN and MAFAB, both companies have launched 5G services. Airtel, which received its license 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 service with potential nationwide coverage. This followed the issuance of license to Elon Musk-owned SpaceX by the Commission. The services are now available in different parts of the country.”
NCC further stated: “The growth statistics of the telecom industry is 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. Internet subscribers for the same period were 157 million while Broadband subscriptions stood at 92 Million, translating to 48 percent broadband penetration in the country.”
