Telecom Sector Records 14.13% GDP Growth In Q1, 2023

The Nation’s Telecommunications and Information Services has recorded a 14.13 percent increase from its performance in the last quarter of 2022 where it recorded 13.55 percent.

This was contained in a statement on Thursday by the Director, Public Affairs for the Nigerian Communications Commission(NCC) Reuben Muoka.

According to the commission, the figures released by the National Bureau of Statistics (NBS) reveal that the nation’s telecommunications and Information Services sector in the first quarter of 2023 contributed N2.508 trillion in terms of financial value contribution to gross domestic product (GDP), representing 14.13 percent.

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When compared on a year-on-year basis, the growth showed positive progression from 12.94 percent in the first quarter of 2022, to the 2023 figure of 14.13, which is an approximate growth of 9.19 percent.

The percentage of telecom contribution to GDP was calculated from 46 distinct sectors of the economy, which constitute telecom and information services baskets.

The Nigerian telecom industry has continued its show of positive outlook, which is credited to the innovative and predictable telecom regulatory environment promoted, and implemented by the Nigerian Communications Commission (NCC).

One of the key highlights of the telecom industry performance within the period was the generation of $820.8 Million for the federal government from 5G spectrum licences fees paid by three eventual winning operators, MTN, MAFAB, and Airtel.

Following the issuance of the licences in December 2021 to MTN and MAFAB, both companies have launched 5G services. Airtel, which received its licence in December 2022, is set to launch services this month, June 2023.

Another major development in the sector was the launch of Starlinks broadband services, a satellite-based wireless broadband service with potential nationwide coverage.

This followed the issuance of the licence to Elon Musk-owned SpaceX by the Commission. The services are now available in different parts of the country.

Meanwhile, the growth statistics of the telecom industry are showing an impressive record of contributions to the economy.

The number of phone subscribers as of April 2023, stood at 223.6 million subscribers, scoring a teledensity of 117 percent.

Internet subscribers for the same period were 157 million while Broadband subscriptions stood at 92 Million, translating to 48 percent. broadband penetration in the country.

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