The Nigerian Communications Commission (NCC) has released
the Nigerian Telecommunications Services sectorial report for the second
quarter of the year 2016 with an indication of growth by 1 per cent from
previous quarter, ITRealms can now reveal.
The report dated September 1, 2016 and made available to ITRealms by NCC in collaboration with the National Bureau of
Statistics (NBS) showed that the telecommunications sector contributed N
1,580 billion to the nation’s Gross Domestic Product (GDP) within the period
under review.
ITRealms gathered from this report that this is the largest
contribution to GDP made from this sector in the rebased period, which
emphasised that growth in telecommunications has remained robust when compared
to total GDP.
However, the Prof. Umar Danbatta’s led NCC pointed out that
due to differing seasonal pattern, the contribution from telecommunications is
usually the largest in the second quarter. Stressing that growth in the
telecommunications sector remained positive.
ITRealms equally gathered that the year-on-year growth dropped
in real terms from 5.0 per cent in the previous quarter to 1.5 per cent, and is
assumed the lowest rate since the third quarter of 2011.
NCC says that 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.
ITRealms further gathered that the telecommunications data
used in the 19-page sectorial report were obtained from the National Bureau of
Statistics (NBS) and the Nigerian Communication Commission (NCC).
Whereas the variables obtained from NBS included the Gross
Domestic Product contribution and growth, NCC indicators comprised subscribers
to mobile and internet services by provider, porting activities and information
on tariffs.
In addition, ITRealms gathered that the total number of
subscribers has increased rapidly over the past decade; citing for instance,
that at the end of 2005 there were 19,519,154 subscribers, but by the end of
2015 there were 151,017,244, which is equivalent to an increase of 13,149,809
every year.
NCC also said, growth has been declining more recently,
possibly as a result of high market penetration leaving less room for large expansion,
hence, in June 2016 – the end of the second quarter – there were 149,803,714
subscribers compared with 148,775,410 in June 2015, which represents an
increase of 0.69 per cent.
ITRealms further gathered that the yearly increase in total
subscriber numbers has been decreasing steadily for the past year; in June 2015
the year on year increase was 12.05 per cent.
NCC emphasized through the report that after falling between
January and April 2016, the number of subscribers began to increase again, and
in June the number was 0.71 per cent higher than at the end of the first
quarter in March.
“This increase is despite a sharp drop in Code Division
Multiple Access (CDMA) subscribers; between June 2015 and June 2015 the number
fell from 2,105,981 to 454,092, a decrease of 78.44 per cent.
Nenye Dom/GEE
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