FinanceICT

NCC Reports: Telecommunications Sector Contributes N2.5 Trillion to GDP, Phone Users Surpass 223.6 Million.

The number of mobile phone subscribers in Nigeria has risen to 223.8 million as of April 2023, as Telecommunications and ICT services contributed N2.508 trillion to Nigeria’s GDP in the first quarter of 2023.

This was disclosed in a statement by NCC Director, of Public Affairs, Mr Reuben Muoka on Tuesday.

He added that the number of Internet subscribers for the same period was 157 million, and broadband subscriptions at 92 million.

GDP

The NCC revealed that Nigeria’s Telecommunications and ICT services contributed N2.508 trillion to Nigeria’s GDP in the first quarter of 2023, quoting figures released by the National Bureau of Statistics (NBS), they said:

  • “Telecoms contribution to GDP was calculated from 46 distinct sectors of the economy, which constitute telecoms and information services baskets.
  • “The Nigerian telecoms industry has continued to show a positive outlook, which is credited to the innovative and predictable telecoms regulatory environment implemented by the NCC.
  • “One of the key highlights of the telecoms industry performance within the period was the generation of 820.8 million dollars for the Federal Government from 5G spectrum licences fees.
  • “The fees were paid by three operators, MTN, MAFAB, and Airtel.’’

Licenses

The NCC noted that following the issuance of the licences in December 2021, MTN and MAFAB already launched 5G services, while Airtel, which received its licence in December 2022, is set to launch the service in June.

They revealed that another major development in the sector was the launch of Starlinks broadband services, a satellite-based wireless broadband service with potential nationwide coverage, citing this followed the issuance of the licence to Elon Musk-owned SpaceX by the NCC, noting that the services were now available in different parts of the country.

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Phone subscribers

Muoka added growth statistics of the telecoms industry were showing an impressive record of contributions to the Nigerian economy, citing that the number of phone subscribers in Nigeria as of April 2023 stood at 223.6 million.

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He added that the number of Internet subscribers for the same period was 157 million, while broadband subscriptions stood at 92 million.

What you should know

Nigeria’s Gross Domestic Product (GDP) rose by 3.52% year-on-year in real terms in the fourth quarter of 2022, an improvement compared to 2.25% recorded in the previous quarter but a decline when compared to 3.98% recorded in the corresponding period of 2021.

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According to the NBS, the GDP growth in Q4 2022 was driven mainly by the services sector, which recorded a growth of 5.69% and contributed 56.27% to the aggregate GDP.

Although the Agriculture sector grew by 2.05% in the reference period, its performance was significantly hampered by severe incidences of flood experienced across the country, accounting for lesser growth relative to the fourth quarter of 2021 which was 3.58%.

Moreover, the Industry sector was yet challenged recording -0.94% growth and contributing less to the aggregate GDP relative to the third quarter of 2022 and the fourth quarter of 2021. Basically, the performance of agriculture and Industry reduced in 2022 relative to 2021, while the performance of the Services sector improved in 2022.

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