Telecom Sector Contributes N2.508tn To Nigeria’s GDP
Significant Contribution to GDP
The telecommunications and Information Services sector in Nigeria made a substantial financial contribution to the nation’s gross domestic product (GDP) in the first quarter of 2023.
According to figures released by the National Bureau of Statistics (NBS), the sector delivered an impressive N2.508 trillion, representing 14.13% of the GDP. This indicates a 4.3% increase from the previous quarter and a positive year-on-year growth of 9.19%.
Telecom Industry’s Positive Outlook
The Nigerian telecom industry has continued to demonstrate a positive outlook, thanks to an innovative and predictable regulatory environment established by the Nigerian Communications Commission (NCC). The growth in the sector’s contribution to the GDP can be attributed to this favorable regulatory framework.
One notable achievement during this period was the generation of $820.8 million in revenue for the federal government through the issuance of 5G Spectrum licenses. MTN, MAFAB, and Airtel were the winning operators, and they paid substantial license fees. MTN and MAFAB have already launched their 5G services, while Airtel is set to follow suit in June 2023.
Expansion and Connectivity
The telecom industry also witnessed significant developments in terms of expansion and connectivity. Starlinks broadband services, a satellite-based wireless broadband service with potential nationwide coverage, was launched following the issuance of a license to Elon Musk-owned SpaceX by the Nigerian Communications Commission. This has allowed for improved internet connectivity in various parts of the country.
Furthermore, the industry’s growth statistics showcase impressive numbers. The number of phone subscribers as of April 2023 reached 223.6 million, resulting in a teledensity of 117%. Internet subscribers stood at 157 million, while broadband subscriptions reached 92 million, reflecting a broadband penetration rate of 48% in Nigeria.
