Telecoms’ input to GDP drops to 8.5%

Nigeria’s telecommunications industry’s contribution to the Gross Domestic Product (GDP) has declined by 0.3 per cent over the last six years, latest industry data released by the Nigerian Communications Commission (NCC) has revealed. The data, which show the trend in telecoms’ GDP contribution over a six-year period spanning 2010 and March 2015, was generated as a result of the nation’s GDP rebasing in 2014 conducted by the National Bureau of Statistics (NBS). According to the new statistics, telecoms’ contribution to GDP stood at 8.9 per cent in 2010, but declined to 8.6 per cent in 2011. By 2012, its contribution to GDP further fell to 7.7 per cent; 7.4 per cent in 2013; 7.6 per cent in 2014 and by the end of March, this year, the sector’s GDP contribution was 8.5 per cent. Consequently, New Telegraph’s analysis of the data showed that, though the sector recorded an increase of 0.9 per cent from between 2014 and end of the first quarter of this year, it also represents a dip in GDP contribution of 0.3 per cent in the sector, if analysed over the past six years. Meanwhile, active telecoms subscriptions in the country rose to 146.5 million as at the end of May, this year.

From 139.1 million active mobile subscriptions on all the mobile networks in the country in December 2014, the figure increased to 140.8 million in January; 142.5 million in February; 143.9 million in March and 145.4 million in April. Also, at the end of May, the figure moved up to 146.5 million. Of the figure, Global Systems for Mobile Communication (GSM) networks control 144.3 million (98.52 per cent); CDMA networks hold 1.9 million (1.36 per cent), while fixed line networks have a paltry 181,625 lines, representing 0.12 per cent. Also, in terms of market share among players in the GSM segment, MTN Nigeria remains the undisputed leader with 61.7 million active lines (43 per cent) and this is followed by Globacom with 30.4 million subscribers (21 per cent). Airtel came third with 29.5 million active mobile subscriptions, representing 21 per cent market share, while Etisalat comes fourth with 22.5 million active subscribers (20 per cent).