In the first quarter of 2023, the telecommunications and Information Services sector in Nigeria made a significant financial contribution to the nation’s gross domestic product (GDP), amounting to N2.508 trillion, which accounted for 14.13 percent of the GDP.
According to data released by the National Bureau of Statistics (NBS), the sector witnessed a 4.3 percent increase compared to its performance in the previous quarter of 2022, where it contributed 13.55 percent to the GDP.
On a year-on-year basis, the sector experienced positive growth, 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.
The contribution of the telecom sector to the GDP was determined by considering 46 different sectors of the economy that encompass telecommunications and information services.
The Nigerian telecom industry has consistently demonstrated a positive outlook, largely attributed to the innovative and predictable regulatory framework established and enforced by the Nigerian Communications Commission (NCC).
An important highlight of the industry’s performance during this period was the revenue generated for the federal government through the issuance of 5G spectrum licenses.
Three operators, namely MTN, MAFAB, and Airtel, paid a total of $820.8 million for these licenses. MTN and MAFAB, who received their licenses in December 2021, have already launched 5G services, while Airtel, which obtained its license in December 2022, is set to launch its services in June 2023.
Another significant development in the sector was the introduction of Starlinks broadband services, which provide satellite-based wireless broadband coverage across the country. This was made possible through the issuance of a license to SpaceX, owned by Elon Musk, by the Nigerian Communications Commission. These services are now accessible in various parts of Nigeria.
The telecom industry’s growth statistics highlight its 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 during the same period amounted to 157 million, while broadband subscriptions stood at 92 million, resulting in a broadband penetration rate of 48 percent in the country.