The Nigerian Communications Commission (NCC) has stated that the telecommunication sector is one of the sectors whose performance took the country out of recession in the fourth quarter of 2020, with a contribution of 12.45% to the Gross Domestic Product (GDP).
According to the press statement signed by Dr. Ikechukwu Adinde, Director, Public Affairs, telecommunications & information services under Information and Communication grew by 17.64% in Q4 2020 from 17.36% in Q3 2020 and 10.26% in Q4 2019.
”In the latest NBS report, agriculture, industries, and services sector, under which telecommunications is categorised, contributed 26.95 per cent, 18.77 per cent, and 54.28 per cent respectively. This is a pointer to the fact that telecommunications, trade, services and crop production are the main drivers of Nigeria’s exit from recession.
“In specific terms, NBS report showed that largest sub-sectors in Q4 2020 are crop production at 3.68 per cent, crude petroleum and natural gas at 8.2 percent, trade at 14.9 per cent, telecommunications & information services at 12.45 per cent, and real estate at 5.7 per cent,” the statement read.
What you should know
- For the past 5(five) years, the telecommunications sector has consistently been driving the digital economy agenda of the government, as it provided the needed impetus in the digital space in supporting the economy, more especially during the COVID-19 pandemic and lockdown restrictions.
- It is important to note that the growth trend since 2015 has reawakened hope that the economic diversification dreams of the country may finally be a reality as the sector continues to energize significant economic activities in the services sector of the economy.
According to the press statement, “Through effective regulatory regime emplaced by the Commission, under the leadership of its Executive Vice Chairman (EVC), Prof. Umar Garba Danbatta, telecoms investment grew from about $38 billion in 2015 to over $70 billion currently.
“Also, broadband penetration increased from 6 per cent in 2015 to 45.02 per cent at December, 2020, indicating that 85.9 million Nigerians are now connected on 3G and 4G networks which provide enhanced high-speed Internet that has continued to boost efficiency and increase productivity across the economic spectrum.”
“Recent statistics also indicate that between 2015 and December, 2020, active voice subscriptions have increased from 151 million to 204.6 million, with teledensity standing at 107.18 per cent. Basic active internet subscriptions grew from 90 million to 154.3 million during the period.”