Telecoms sector contributed N2.508tn to GDP in Q1

The Nigerian telecoms and information services sector contributed N2.508 trillion in financial value to the country’s GDP in the first quarter of 2023, accounting for 14.13 percent of the total.

This was disclosed by the Director Public Affairs, Nigerian Communications Commission, Mr. Reuben Muoka in Abuja.

Figures released by the National Bureau of Statistics (NBS) 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 positive progression from 12.94 per cent in the first quarter of 2022, to the 2023 figure of 14.13 per cent which is an approximate growth of 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.

The Nigerian telecom 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).

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, MAFAB and Airtel.

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 its services this month, June 2023.

The debut of Starlinks broadband services, a satellite-based wireless broadband service with potential statewide coverage, was another significant milestone in the sector. The Commission has previously granted a license to Elon Musk’s SpaceX. The services are now available throughout the country.

Meanwhile, the telecom industry’s growth statistics demonstrate a remarkable track record of economic achievements. As of April 2023, the number of phone subscribers stood at 223.6 million, with a teledensity of 117%.

Internet customers totaled 157 million during the same period, while broadband subscriptions totaled 92 million, representing 48% broadband penetration in the country.