In the first quarter of 2023, the telecommunications and Information Services sector made a significant financial contribution of N2.508 trillion to Nigeria’s Gross Domestic Product (GDP), accounting for 14.13 percent.
Data released by the National Bureau of Statistics (NBS) revealed that the sector experienced a 4.3 percent increase compared to its performance in the previous quarter of 2022, where it recorded 13.55 percent.
When compared on a year-on-year basis, the growth demonstrated positive progression, rising from 12.94 percent in the first quarter of 2022 to the 2023 figure of 14.13 percent, indicating a growth rate of approximately 9.19 percent.
According to a statement from the Nigerian Communications Commission (NCC), the percentage contribution of the telecommunications industry to the GDP was calculated by considering 46 distinct sectors of the economy, which include telecommunications and information services.
The telecoms industry in the country has displayed a positive outlook, which can be attributed to the innovative and predictable regulatory environment established and implemented by the NCC.
An important highlight of the industry’s performance during this period was the generation of $820.8 million in revenue for the Federal Government from 5G spectrum license fees paid by three winning operators: MTN, Mafab, and Airtel.
After being granted licenses in December 2021, both MTN and Mafab have already launched 5G services, while Airtel, which received its license in December 2022, is scheduled to launch its services in June 2023.
Another significant development in the sector was the introduction of Starlinks broadband services, a satellite-based wireless broadband service with the potential for nationwide coverage. This followed the issuance of a license to SpaceX, owned by Elon Musk, by the commission. The services are now accessible in various parts of the country.
The growth statistics of the telecoms industry demonstrate an impressive contribution to the economy. As of April 2023, the number of phone subscribers reached 223.6 million, with a teledensity of 117 percent. Internet subscribers for the same period totaled 157 million, while broadband subscriptions stood at 92 million, resulting in a broadband penetration rate of 48 percent in the country.
