Figures from the Nigerian Communications Commission (NCC) reveal that telecommunications industry’s contribution to Nigeria Gross Domestic Product (GDP) has risen by 1.4% in the fourth quarter of the year 2019.
The industry statistics records that the sector has contributed 10.60% to GDP in Q4 2019 as against the 9.20% recorded in the third quarter of the same year.
The downward trend witnessed in Q3 2019 makes it the sharpest percentage fall (decline) recorded since the establishment of the industry in 2012.
Interestingly, the newly released data by the Commission, NCC in Q4 2019 shows an increase of 0.75% when to 9.85% recorded in Q4 2018.
This further noted there has been an increase progression of 0.81%, 1.46%, 0.26%, 1.28% in Q3 2018, Q4 2018, Q1 2019, Q2 2019 respectively.
In addition, the National Bureau of Statistics (NBS) disclosed that foreign capital investment in the telecommunications industry rose by 725% in 2019 from the $114.43 million recorded in 2018.
NBS report disclosed that in 2019, when the telecoms industry experienced a significant 725% increase, about $829.62 million was invested into the industry, increasing the foreign capital to $944.05 million.
The 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.
Also, more statistics place GSM Market share at 99.80% while CDMA, Fixed (Wireless/Wired) and VoIP see 0.00%, 0.10% and 0.10% as their respective market share.
Although the sector has faced several challenging years, with rapid currency depreciation and a macroeconomic slowdown weighing on profitability, Nigeria’s ICT sector remains a critical non-oil growth driver and major contributor to the economy, supported by a sizeable young population and the rapid adoption of mobile internet services.
Dominated by four large mobile operators, the telecoms industry remains on a steady growth trajectory, as rising smartphone penetration and investment in mobile internet networks supports a shift towards data-driven growth models.
Rapid mobile growth has also entailed a series of new regulatory challenges, as industry watchdog the Nigerian Communications Commission (NCC) moves to implement reforms aimed at improving consumer protection and national security, as well as ensuring more equitable distribution of telecoms’ economic benefits.