Home Community Insights Telecoms Industry Contributed N2.508trn to Nigeria’s GDP in Q1 2023 – NCC

Telecoms Industry Contributed N2.508trn to Nigeria’s GDP in Q1 2023 – NCC

Telecoms Industry Contributed N2.508trn to Nigeria’s GDP in Q1 2023 – NCC

The telecommunications and information services sector made a significant contribution of N2.508 trillion to Nigeria’s Gross Domestic Product (GDP) in the first quarter of 2023, according to a statement released by Dr. Reuben Muoka, the Director of Public Affairs at the Nigerian Communications Commission (NCC).

The figures provided by the National Bureau of Statistics (NBS), which accounts for 14.13% of the total GDP, indicate a 4.3% increase compared to the sector’s performance in the previous quarter of 2022 when it contributed 13.55% to the GDP.

“On a year-on-year basis, the growth rate showed a positive progression from 12.94% in the first quarter of 2022 to the 2023 figure of 14.13%, reflecting a substantial growth rate of approximately 9.19%,” the statement said.

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The calculation of the telecoms industry contribution to GDP was derived from 46 different sectors of the economy that fall under the telecoms and information services domain.

The Nigerian telecom industry has consistently demonstrated a positive outlook, which can be attributed to the innovative and consistent regulatory environment established and implemented by the NCC.
During the covid pandemic, which saw the economic struggles against shocks to stay afloat, the telecom served as the federal government’s cash cow as other sectors of the economy plummeted under the heat.

In the first quarter of 2023, the federal government generated $820.8 million in revenue from the payment of 5G spectrum license fees by three operators: MTN, MAFAB, and Airtel.

MTN and MAFAB received their licenses in December 2021 and subsequently launched 5G services, while Airtel, which obtained its license in December 2022, is scheduled to launch its services in June.
Mouka noted that another significant development in the sector was the introduction of Starlinks broadband services, a wireless broadband service based on satellite technology, with the potential for nationwide coverage. This was made possible through the issuance of a license to SpaceX, owned by Elon Musk. The services are now available in various parts of the country.

The telecoms industry’s growth statistics highlight its impressive contributions to the economy.

As of April 2023, the number of phone subscribers reached 223.6 million, resulting in a tele density of 117%. Internet subscribers for the same period amounted to 157 million, while broadband subscriptions stood at 92 million, representing a broadband penetration rate of 48% in the country, according to Muoka.

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