The Nigerian Communications Commission, NCC, has reported that one of the sectors whose success lifted the nation out of recession in the fourth quarter of 2020 is the telecommunications industry under its oversight.
The sector contributed 12.45 percent to the country’s Gross Domestic Product, according to NCC (GDP).
This was expressed in a statement signed by the Director, Public Affairs, NCC, Dr. Ikechukwu Adinde.
Telecommunications & Computer Networks under Information and Connectivity rose by 17.64 per cent in Q4 2020 from 17.36 per cent in Q3 2020 and 10.26 per cent in Q4 2019, according to the new data published by the National Bureau of Statistics (NBS).
[READ ALSO] Three Repentant Bandits Surrender Arms In Zamfara
In the new NBS survey, 26.95 percent, 18.77 percent, and 54.28 percent, respectively, contributed to the agriculture, manufacturing, and services sectors under which telecommunications is classified. This is an indication of the fact that the key factors of Nigeria’s emergence from recession are telecommunications, commerce, utilities and crop production.
Specifically, the NBS study showed that crop production at 3.68 percent, crude oil and natural gas at 8.2 percent, trade at 14.9 percent, telecommunications & information services at 12.45 percent and real estate at 5.7 percent are the main sub-sectors in Q4 2020, according to the report.
Over the years, the steady growth of the telecoms industry, with its omnipresent positive effect on all other aspects of the economy in terms of enhanced process automation and digital transformation in the delivery of services, has been impressive.
The growth pattern since 2015 has reawakened the expectation that the country’s hopes of economic diversification may eventually be a reality as the sector continues to energize essential economic activities in the economy’s services sector.
Under the leadership of its Executive Vice President (EVC), Prof. Umar Garba Danbatta, telecoms expenditure rose from around $38 billion in 2015 to over $70 billion in 2015 through a successful regulatory framework implemented by the Commission.
Broadband penetration has also risen from 6% in 2015 to 45.02% in December 2020, suggesting that 85.9 million Nigerians are now wired to 3G and 4G networks that offer improved high-speed Internet, which has continued to improve production and competitiveness across the economic spectrum.
Latest figures also reveal that active voice subscribers have risen from 151 million to 204.6 million between 2015 and December 2020, with teledensity remaining at 107.18 percent. Over the time, simple active internet subscribers rose from 90 million to 154.3 million.
The Commission has indicated that it is committed to its culture of quality regulation of the telecommunications industry, ensuring a stable and robust sector that drives the Federal Government’s digital economy agenda and ultimately contributes to GDP growth in the country.
