The latest report by the National Bureau of Statistics (NBS) has shown that Nigeria’s telecommunications industry contributed to lifting the country out of recession in the fourth quarter of 2020.
The telecom sector, according to NBS statistics contributed 12.45 per cent to the country’s Gross Domestic Product (GDP) during the review period.
The data released by the National Bureau of Statistics (NBS), showed that telecommunications and Information Services under Information and Communication grew by 17.64 per cent in Q4 2020 from 17.36 per cent in Q3 2020 and 10.26 per cent 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- a pointer to the fact that telecommunications, trade, services and crop production are the main drivers of Nigeria’s exit from recession.
The NBS report showed in specific terms, that the largest sub-sectors in Q4 2020 are crop production at 3.68 per cent, crude petroleum and natural gas at 8.2 per cent, trade at 14.9 per cent, telecommunications & information services at 12.45 per cent, and real estate at 5.7 per cent.
The NCC said Monday evening in a statement signed by its Director, Public Affairs, Dr Ikechukwu Adinde, that the telecommunications sector has, in the last five years been a major driver of the digital economy agenda of the Federal Government, as it has continued to provide the needed digital strength for the economy, especially during the COVID-19 pandemic and its attendant movement restriction period.
“Since the outbreak of the pandemic, government institutions, businesses and individuals have relied heavily on telecoms services to carry out their daily operations and official routines.
“In response to the increased demand, the Commission put a number of regulatory measures in place to ensure seamless access by Nigerians to telecommunication services and protect against any adverse impact on the quality of service enjoyed by consumers,” the NCC said in the statement.
The commission noted that the steady growth of the telecoms sector over the years, with its pervasive positive impact on all other sectors of the economy in terms of increased automation of processes and digital transformation in service delivery, has been remarkable.
According to the statement, “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.
“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 as of 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.”
The statement further revealed that 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 while basic active internet subscriptions grew from 90 million to 154.3 million during the period.
