Telecoms sector contributes 16.06% to Nigeria’s GDP in Q2 of 2023 – NBS

The telecommunications and information services ( telecoms) sector has emerged as the third-highest contributing activity to Nigeria’s GDP for Q2 of 2023. This discovery is among many other findings in the Nigerian Gross Domestic Product Report, a project commissioned by the Nigerian Bureau of Statistics (NBS). 

According to the report, telecom services supported the nation’s GDP growth with 16.06%. Crop production (20.66%) and Trade (16.80%) occupied first and second positions respectively. Despite an economic downturn, Nigeria’s GDP grew by 2.51% in Q2 of 2023. Its nominal GDP value was N52.10 trillion. However, its real GDP value was N17.72 trillion by the end of the second quarter.

Aside from making it into the list of the highest contributing activities, telecoms also played a pivotal role in the impressive outing of the Information and Communications (ICT) sector. The ICT sector contributed 19.54% to the country’s GDP. 

It is worth mentioning that the ICT field comprises four activities. They are Telecommunications and Information Services; Publishing; Motion Picture, Sound Recording and Music Production; and Broadcasting. According to the NBS report, the ICT sector grew by 41.67% in nominal terms. Compared to Q2 of 2022, there’s an increase of 27.56% points. In real terms, the ICT segment recorded a growth of 11.6%.

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Telecoms blazes the trail 

Like other sectors, Nigeria’s telecoms sector has been affected by an ongoing economic downturn. Its recent performance based on the NBS report shows that it is resilient. According to a study conducted by the Nigerian Communications Commission, the country’s volume of internet subscribers surged by 9% in 2022. 

As of June 2023, MTN (84,663,653) enjoyed the majority of subscriber data. It was followed by Globacom (27.91%), Airtel (27.39%), and 9mobile (6.28%). However, the telecoms sector has experienced a few hiccups.

Nigeria’s volume of internet subscribers dropped from 159,598,451 in May 2023 to 159,498,836 in June 2023. The broadband penetration rate also dipped to 47.01% in June 2023. Compared to the rate in May 2023 (48.28%), there’s a difference of 1.27%.

Last week, telecoms operators hinted at a potential hike in data, call, and SMS charges rates. Citing the increased cost of diesel and frequent regulatory interference, the telcos claimed a review of the current price structure was imminent. One can only speculate whether a rate hike will support or impede its contributions to the national GDP when a future study is conducted.