For the first time in six years, the telecommunications sector has recorded its biggest addition to gross domestic product under the President Muhammadu Buhari's administration.
According to the National Bureau of Statistics (NBS), the telecommunications sector has recorded its biggest addition to gross domestic product in six years, under the leadership of President Muhammadu Buhari and Adebayo Shittu.
TheCable News reported that for the first time in six years, the sector is contributing as much as 9.8 percent of the nation’s gross domestic product (GDP), adding that the sector contributed as much as N1.6 trillion to the nations GDP in the second quarter of 2016.
A report by NBS read;
“In real terms, the telecommunications sector contributed N 1,580 billion to GDP in the second quarter of 2016, or 9.8%, which represents an increase of 1.0% points relative to the previous quarter.
“This is the largest contribution to GDP made from this sector in the rebased period, which emphasises that growth in telecommunications has remained robust when compared to total GDP.
“However due to differing seasonal patterns, the contribution from telecommunications is usually the largest in the second quarter.”
Although growth in the telecommunications sector remained positive, in contrast with the economy as a whole, year-on-year growth nevertheless dropped in real terms from 5.0% in the previous quarter to 1.5%, the lowest rate since 2011 Q3.
“The share of telecommunications in total real GDP had declined throughout 2010 to 2014, but for the last five quarters growth in telecommunications has been higher, meaning the trend has reversed.”
The total number of subscribers as of the end of June 2016 stood at N149,803,714, and internet users for the same time stood at 92,181,978 — the biggest internet market in Africa.