The Nigerian telecommunications sector added N1.398 trillion, or 1.11% in the real terms to the Gross Domestic Product (GDP) in the third quarter of 2
The Nigerian telecommunications sector added N1.398 trillion, or 1.11% in the real terms to the Gross Domestic Product (GDP) in the third quarter of 2016. – NCC
This statement was stated and signed in Abuja by NCC’s Director of Public Affairs, Mr. Tony Ojobo and made available to the media. The report on GDP was released by the National Bureau of Statistics (NBS).
Ojobo stated that third quarter figure was a bit lower than the N1.5 trillion recorded in second quarter of 2016, adding that the figures reflected the sign of the times.
Facts you need to know about Telecoms in Nigeria:
• The GDP for telecommunication as at Q3 of 2016 under information and communication shrunk from 4.69% in Q3 2015 to 1.49% in Q2 2016 then to 0.95% in Q3 2016.
• The information and communication sector added 9.9% total nominal GDP in Q3 of 2016 -the same rate as recorded in Q3 of 2015 but lower than the 12.6% it added in the previous quarter.
• The sector grew by 1.11% in real terms, year-on-year in the Q3 of 2016 from the recorded rate in the period of 2015, which was 4.16% point lower and also lower by 0.25% points when compared to the rate recorded in the Q2 of 2016.
• Breakdown of the GDP constant basic prices for information and communication under the telecommunications and information service as at Q1 of 2015 is N1.3 trillion and Q2 of 2015 is N1.5 trillion and Q3 of 2015 is N1.3 trillion and Q4 of 2015 is N1.6 trillion which translated to N5.9 trillion for 2015.
• Mobile telephone subscription went up to 153 million as at September, 2016 from 149million in quarter 2 of 2016 to 153million and teledensity now is 109%.
• The five big players in the sector are: Airtel Nigeria Limited, Etisalat Nigeria, Globacom Nigeria Limited, MTN Nigeria Communications Limited and NATCOM Consortium trading as ntel.
• Fixed/fixed wireless operators like IPNX, 21st Century Nigeria Limited, Glo Wired and MTN Wired have contributed to the growth of the sector respectively. A new entrant, Smile Communications provides voice over internet protocol services among others.
• Mobile Network Operators (MNOs) control about 99% of the market share while 0.2% is reserved for other operators.
• Internet subscriptions went up from 93.6million as at September, 2016 from 31.1million in 2012 – a 200% growth rate.
• Regarding the various market shares of GSM operators or (MNOs), MTN controls roughly 40% of the market with 60.5million active subscriber base and Globacom has 36.9million subscribers.
• Airtel and Etisalat have 32.7million and 22.5million subscribers respectively.
• The sector has about $68 billion total investments till date and with expected new investments in the areas of broadband Infrastructure in a few months, the sector is likely to add more to the Nigeria’s GDP.