The telecommunications sector contributed N 1.58trillion (N1,580 billion) to gross domestic product, GDP, in the second quarter of 2016, or 9.8 per cent, which represents a leap of 1.0 per cent points relative to the previous quarter.
The latest figures from the National Bureau of Statistics, NBS, which showed the figure, also revealed that this is the largest contribution to GDP made from the sector in the rebased period, which emphasises that growth in telecoms has remained robust when compared to total GDP.
However due to differing seasonal patterns, the contribution from sector is usually the largest in the second quarter, NBS noted.
The Bureau said 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 5.0per cent in the previous quarter to 1.5 per cent, the lowest rate since the third quarter of 2011.
The share of telecoms in total real GDP had declined throughout 2010 to 2014, but for the last five quarters growth in the sector has been higher, meaning the trend has reversed.
The total number of subscribers has increased rapidly over the past decade; 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. However, growth has been declining more recently, possibly as a result of high market penetration leaving less room for large expansion.
In June this – the end of the second quarter – there were 149,803,714 subscribers compared with 148,775,410 in June last year, which represents an increase of 0.69 per cent.
The yearly increase in total subscriber numbers has been decreasing steadily for the past year; in June last year the year-on-year increase was 12.05 per cent.
However, after falling between January and April this year, 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.
NBS said this increase is despite a sharp drop in Code Division Multiple Access (CDMA) subscribers; between June last year and June this year, the number fell from 2,105,981 to 454,092, a decrease of 78.44 per cent.
Although CDMA remains the second most popular technology type, this decrease has meant that the global system for mobile communications (GSM) technology type has entrenched its position as the dominant provider of mobile subscriptions.
