Nigerian economy’s telecom sector generates N2.508 trillion

The first quarter of 2023 saw a significant N2.508 trillion (or 14.13 percent) financial value contribution from Nigeria’s telecommunications and information services sector to the country’s gross domestic product (GDP).

According to data made public by the National Bureau of Statistics (NBS), the sector saw growth of 4.3% from the last quarter of 2022, when it saw growth of 13.55%.

When measured on a year-over-year basis, the growth increased positively from 12.94% in the first quarter of 2022 to 14.13% in 2023, which is an approximate growth of 9.19%.

The baskets of telecom and information services represent 46 different economic sectors, from which the percentage of telecom’s contribution to GDP was calculated.

The Nigerian Communications Commission, NCC, is responsible for promoting and implementing an innovative and predictable regulatory environment for the telecom industry in Nigeria, which has continued to demonstrate a positive outlook.

The generation of $820.8 million for the federal government from the 5G spectrum license fees paid by three ultimately successful operators, MTN, MAFAB, and Airtel, was one of the key highlights of the telecom industry’s performance during the period.

Both MTN and MAFAB have introduced 5G services since receiving their licenses in December 2021. This month, in June 2023, Airtel will begin offering services after receiving its license in December 2022.

Starlinks broadband service, a satellite-based wireless broadband service with potential nationwide coverage, was introduced, which is another significant development in the industry.

This came after the Commission granted a license to SpaceX, owned by Elon Musk. Different regions of the country now offer the services.

In the meantime, the telecom sector’s growth statistics demonstrate an impressive track record of economic contributions.

There were 223.6 million phone subscribers as of April 2023, giving the country a teledensity of 117 percent.

157 million people had internet access during the same time period, while 92 million had broadband subscriptions, translating to a countrywide broadband penetration rate of 48%.