The Nigerian Telecom sector’s contribution to Nigeria’s GDP in the third quarter (Q3) of 2019 has declined by 3.21%. The Nigerian Bureau of Statistics (NBS) revealed the decline.
The NBS report revealed that the figures dropped from 14.55% in Q2 2019 to 11.34% in Q3. This cause a 3.21% decline. The report also revealed that the contribution grew 0.79% higher to 10.55% the sector contributed to Nigeria’s GDP in 2018.
The settled tussle between the Nigerian Communication Commission (NCC) and some telecoms allegedly caused the rise. Considering that MTN Nigeria paid N330 million fine to the NCC and also listed on the Nigerian Stock Exchange early in the year to pacify the NCC.
See Also: NCC August Report: Telecom loses over 100,000 Internet Subscribers
It is also alleged that the acquisition of 9mobile’s acquisition by Teleology holdings and the $230 million loan it raised for stability and growth, contributed to the rise. An earlier report from the NCC revealed the telco recorded the highest number of porting subscribers.
Despite the decrease in GDP contribution, the NBS has reported that the telecoms sector showed a growth rate of 9.88%. This rate is 2.21% lower than what was recorded in Q3 2018. It is also 14.89% lower than the quarter on quarter growth rate.
The telecom sector report revealed that the decline started in Q4 of 2018, with the recent growth being the first recorded in two quarters.
The NCC stats in July showed that 773,449 new subscribers joined the broadband system. This number totaled Nigeria’s teledensity to 92% and with a penetration rate of about 33.72%.
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