Sunday , October 17 2021

Telecom Industry Records Steady Growth as Contribution to GDP Hits 10.88% in Q1 2020

The Nigerian telecommunications industry has contributed 10.88% to the country’s Gross Domestic Product (GDP) in the first quarter of 2020.

Statistics from the Nigerian Communications Commission, NCC has revealed that the industry has been on a sustained path of growth.

Checks by Business Remarks shows that this represented a rise of 0.28% during the period under review.

The industry statistics recorded that the sector contributed 10.60% to GDP in Q4 2019 as against 9.20% recorded for Q3 2019.

Statistics analysis showed steady growth in percentage contribution of the sector to the GDP since the year 2012, when the commission started computing its GDP contribution to the Nigerian economy.

READ ALSO: NCC Revises Complaints, Service Level Agreements to Strengthen Consumer Protection

At the maiden edition of the Nigerian Telecom Leadership Summit held last year, the commission’s Executive Vice Chairman, Prof. Umar Danbatta disclosed that investments in the Nigerian telecoms sector reached $70 billion (about N25.2 trillion).

According to him, the sector’s contribution to the Gross Domestic Product in Q4 2018 was 9.85%, which translates to about N1.9 trillion when converted.

Furthermore, Business Remarks also gathered that Nigeria’s telecom industry attracted and enjoyed a boost in the first quarter of 2019, as foreign investors invested $32.35 million in Q1; $4.5 million in Q2; N886.03 million in Q3, and $21.17 million in Q4 2020.

However, stakeholders noted the sector requires an additional $30 billion worth of investment to extend telecom services to unserved areas, as well as to resolve other challenges.

In the same vein, the Minister of Communications and Digital Economy, Dr.Isa Pantami, has disclosed that digital technology has so far contributed 4.07 percent to the GDP in 2020.

Upon his reappointment as the commission’s EVC for the second term, Danbatta assured Nigerians on continuous commitment to drive industry growth for an effective digital economy in the country.

The number of active telephone subscribers also rose from 150 million in 2015 to 192.32 million in May 2020 with teledensity currently standing at 100.72 percent, following the rebasing the teledensity to 91 percent in March, 2019.

Active internet subscriptions also increased from 93 million to over 141 million currently during the period with broadband penetration placed at 40.14% in May 2020.

Over the years, NCC has earned a reputation as a foremost Telecom regulatory agency in Africa.
The Commission is hoping to catalyze the use of ICT for various aspects of national development.

To also achieve its mandate, the Commission has put in place the necessary licensing and regulatory framework for the supply of telecommunications services.

About Bukola Olanrewaju

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