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Nigeria’s Telecom Sector Contributed 16% in Q2 2023, to The GDP

Nigeria’s Telecom Sector Contributed 16% in Q2 2023, to The GDP

In a recent report published by the Nigerian Communications Commission (NCC), Nigeria’s telecom sector significantly contributed 16 percent in the second quarter (Q2) of 2023, to the country’s GDP.

Executive Vice Chairman of NCC, Prof. Umar Danbatta, said that from a 14.13 percent contribution in the first quarter of 2023, and up from the 15 percent all-time high record contributed in the second quarter of 2022, the telecom sector set a new record with the 16% contribution.

Prof. Danbatta noted that from about 8 percent contribution to GDP in 2015, the telecom quarterly GDP has increased significantly to reach its current threshold of 16 percent and that this has continued to positively impact all aspects of the economy.

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In his words,

“Through sustained regulatory excellence and operational efficiency by the commission, the industry has grown in leaps and bounds over the past two decades and this has impacted on all other sectors of the economy. The effective regulatory regime emplaced by the NCC and with the support from all stakeholders has been our major success factor as an industry”.

As the telecom sector strives to contribute significantly to the Nigerian economy, it is however faced with barriers to deployment, ranging from fiber cuts, the high capital requirement for deployment, multiple taxation, regulations, and right of way (RoW), amongst others.

On connectivity challenges, the NCC disclosed that some clusters of access gaps all over the country have been identified, and a significant drop in the number of access gaps has been recorded, as it continues to drive initiatives that boost access to telecommunications services.

With its efforts to stimulate infrastructure development, effective allocation of spectrum, and driving the e-government ecosystem, the NCC is confident that the commission will attain a 50 percent broadband penetration threshold by the end of 2023 and 2025.

The telecommunications sector in Nigeria has been contributing greatly to Nigeria’s GDP reaching new heights yearly.  Through the effective regulatory environment put in place by NCC, the sector has recorded tremendous growth from an initial investment profile of $500 million as of 2001.

In 2022, the sector contributed a whopping N10.126 trillion, as an aggregate quarterly contribution to the nation’s GDP.

The growth trajectory has continued this year as the telecommunications and information services sector delivered a handsome N2.508 trillion in terms of financial value contribution to the nation’s gross domestic product, GDP, representing 14.13 percent in the first quarter of 2023.

The sector has continued to show a positive outlook, which is credited to the innovative and predictable telecom regulatory environment promoted, and implemented by the NCC.

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