Telecom sector contributes N1.6b to GDP in 4th quarter – NBS

“It is higher than the contribution in the quarter but this is to a large extent due to different seasonal patterns of the telecommunications sector and the whole economy

The National Bureau of Statistics said the telecommunications sector contributed N1.6 billion to Gross Domestic Product in the final quarter of 2015 in real terms.
This was contained in the Nigerian Telecommunications Sector Summary Report for Fourth Quarter and Full Year 2015 released by NBS in Abuja on Tuesday.
It said the sector’s contribution to the GDP in the quarter represented 8.88 per cent.
It said there was a slight increase relative to the 8.76 per cent contribution recorded in the same quarter of the previous year.
The report said: “It is also higher than the contribution of 7.71 per cent recorded in the third quarter.
“It is higher than the contribution in the quarter but this is to a large extent due to different seasonal patterns of the telecommunications sector and the whole economy.
“The year on year growth rate recorded in the fourth quarter of 2015 was 3.49 per cent higher than the growth rate of 2.48 per cent recorded in the same quarter of 2014.”
The report stated that the share of telecommunications in real GDP tended to fluctuate over the course of the year.
It stated that it tended to fluctuate due to different seasonal patterns, but nevertheless annual averages declined every year between 2010 and 2014.
“In 2015 this trend was reversed; in each quarter the growth rate in the telecommunications sector was higher than for the economy as whole.
“As a result, the proportion of total annual GDP accounted for by telecommunications increased in 2015.”
The report stated that the total number of subscribers had increased rapidly over the previous decade and over the past year.
It stated that between December 2014 and December 2015, the number had increased by 11.97 million or 8.61 per cent.
It added: “A slightly lower growth rate than in prior years, possibly as market penetration is already high, which leaves less room for large expansion.
“It also implies that the number of subscribers grew by significantly more than the sectors contribution to GDP over this period.”
The News Agency of Nigeria reports that the telecommunications data used in the report are obtained from the NBS and the Nigerian Communication Commission.
Variables obtained from NBS included GDP contribution and growth, whilst NCC indicators included those on subscribers to mobile and internet services by provider, porting activities and information on tariffs.
NAN.

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