Telecoms Contribution to GDP Up 6.7% in Q2 - Sundiata Tech

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Monday, September 11, 2017

Telecoms Contribution to GDP Up 6.7% in Q2



Second quarter (Q2) report of the National Bureau of Statistics (NBS) shows that the contribution of the telecoms sector to Nigeria’s Gross Domestic Product (GDP) now stands at N1.549 trillion, up by 6.68 percent from its contribution of N1.452 trillion in Q1 2017.
Umar Garba Danbatta, executive vice chairman, Nigerian Communications Commission (NCC), comments on the sector’s growth, saying NBS’ report has confirmed that the telecoms sector, during Q2 2017, contributed 9.5 percent to the total GDP of the country in contrast to 9.1 percent contribution in the first quarter of the year.
Experts say the figure, which results to about 6.68 percent growth in the real term, is an indication of the potentials the industry has to boost the country’s economy.
Speaking while receiving the chairperson of Liberia Telecommunications Authority (LTA), Angelique Weeks, at the NCC headquarters in Abuja last week, Danbatta said, “We are very proud of the remarkable contribution the sector is making. Even at the recent times when the whole economy was facing challenges, the sector had remained resilient and stable.”
He told the visitor, whom a team of administrators accompanied from West Africa Telecommunication Regulators Association (WATRA), that the commission had also noticed a remarkable increase in the data usage in the country.
“The monthly data usage is about 40 million terabytes,” he said.
He, however, expressed optimism that the country would undergo a massive ICT transformation by the time the excess data capacity at landing point in Lagos was deployed to the hinterland through licensing of infracos (infrastructure companies).
“We can see that 2017 Q2 figures are similar to that of 2016 Q2, where the sector also contributed N1.5 trillion. However, we are happy with the slight increase, seeing that the sector’s contribution dipped in Q3 of 2016 as a result of the recession in the economy, but we are gradually recovering and the impact is seen in the contributions to GDP,” Subomi Sodipo, CEO, CFmobile, told BusinessDay.
ICT industry analysts say that the situation is turned around with more focus on the sector and internet penetration.
The broadband penetration in Nigeria currently stands at 21 percent, as Nigeria is inching toward 30 percent penetration next year, which is in line with its National Broadband target, Danbatta noted.
The commission has approved spectrum trading consistent with an item of the 8-Point Agenda, optimising the use and benefits of spectrum, to ensure that no acquired spectrum is left unutilised, he said. BUSINESSDAY.

 

Jumoke Akiyode Lawanson

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