… Contributes 16.19% to Nigeria’s GDP in Q2 2024
The Nigerian telecommunications sector supervised and regulated by the Nigerian Communications Commission (NCC) has been one of the most active contributors to the nation’s Gross Domestic Product for several years and it is still doing so.
The contribution of the telecom sector to the GDP has been on the rise over the years since 2001 when the sector was liberalised and mobile operations privatisatised.
Nigeria’s telecoms industry, which is supervised by NCC, has blossomed over the last decade thanks to a growing adoption of data services and the rise of mobile money. The telecoms industry is now one the bedrock of Nigeria’s economy.
From contributing 7.6% to GDP in 2014, it has doubled a decade later, accounting for 16.19% of GDP as of Q2 2024
The year 2024 is not an exception as it has contributed robustly again at least going by the data that is available to the public for the second quarter
It contributed 16.19% to the country’s Gross Domestic Product (GDP) in the second quarter of 2024, thereby placing it in the third position among those sectors that have helped to move the economy forward during the period under review.
The telecommunication sector follows the agriculture and trade sectors contributing 20.35% and 16.39% respectively.
These sectors are followed by other sectors such as financial services at 6.04%, crude oil and natural gas at 5.70%, real estate at 5.17%, food, beverage, and tobacco at 4.44%, and construction at 3.17%.
The telecom sector’s contribution to the GDP has been increasing steadily since 2001, when it was liberalised and mobile operators privatised.
According to the Nigerian Communications Commission (NCC), the telecommunications industry in Nigeria has contributed to the country’s GDP in the following ways:
2014: 7.6% of GDP
2015: 8.5% of GDP
2019: 10.30% of GDP
2021: 12.61% of GDP
2023: 14.38% of GDP
Q2 2024: 16.19% of GDP
The telecommunications industry has become a key part of Nigeria’s economy, and its contribution to GDP has nearly doubled in the last decade. This growth is due to the rise of mobile money and the increasing use of data services. Policy reforms, such as deregulation in the late 1990s and early 2000s, have also contributed to the industry’s growth.
Nigeria’s telecommunications industry includes radio, television, fixed and mobile telephones, and the Internet. The country is Africa’s largest ICT market, accounting for 82% of the continent’s telecom subscribers and 29% of internet usage.
Its major mobile operators now include MTN, Airtel, Globacom, 9mobile, and the Internet Service Providers (ISPs).
According to the Nigerian Communications Commission (NCC), the sector’s contribution to the GDP grew from 11.94% in the third quarter of 2021 to 12.61% in the first quarter of 2022.
It further grew to 13.50% in the third quarter of 2023 to 14.00% in the fourth quarter of 2023 to 14.58% in the first quarter of 2024 and 16.19% in the second quarter of 2024.
Some factors attributed to the steady rise of its contribution to the GDP are increasing telecom subscribers base, improved sector efficiency, increased revenue generation to government and increased investments in the industry. (GBN)
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