Telecoms industry contribution to GDP decline by 2.19% in Q3 2019

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The newly released data by the Nigerian Communications Commission (NCC) has shown a decline in the telecommunications industry’s contribution to the Gross Domestic Product (GDP) of Nigeria.

The industry statistics records that the sector has contributed 9.20% to Nigeria GDP in the third quarter of the year 2019 as against the 11.39% recorded in the second quarter of the same year.

This is to say, telecoms industry contribution dropped by 2.19%.

Although the Q3 2019 contribution to the GDP shows an increase of 0.81% when compared to 8.39% recorded in Q3 2018, however it is to be noted there has been an increase progression of 1.46%, 0.26%, 1.28% in Q4 2018, Q1 2019, Q2 2019 respectively.

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The downward trend witnessed in Q3, 2019 makes it the sharpest percentage fall (decline) recorded since the establishment of the industry in 2012.

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.

Recall, Business Remarks reported that last week that 14 States Lagos, Kano, Anambra, Ondo, Cross River, Kogi, Osun, Kaduna, Enugu, Adamawa, Ebonyi, Imo, Kebbi and Gombe allegedly increased the charges on Right of Ways (RoW) by 1200%.

A source noted of increased cost of RoW from the initial fee of between N300 to N500 per linear metre to between N3,000 and N6,000 per linear metre, which represents not less than 1,200% increments thereby sparking reactions from stakeholders in the industry.

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