from OKORO CHINEDU in Lagos, Nigeria
Nigeria Bureau
LAGOS, (CAJ News) – THE telecommunications sector’s contribution to the Nigerian fiscus is projected to grow amid the challenges impacting on the oil sector, for decades the mainstay of the West African country’s economy.
The former was among the biggest contributors to gross domestic product (DGP), which grew by 3,46 percent year-on-year (y/y in the fourth quarter of 2023 (Q4 23).
This is compared to a 2,54 percent y/y recorded in the third quarter Q3 23, according to the national accounts released by the National Bureau of Statistics (NBS).
During the last quarter of the year, telecommunications grew by 6,9 percent y/y against 7,7 percent recorded in Q3 23 and accounted for 14 percent of total GDP.
Economist, Chinwe Egwim, noted internet subscriptions remained resilient despite visible changes in consumption patterns.
“The importance of social connectivity remains high, even in times of economic challenges,” she said.
“Social media platforms, messaging apps and online communities continue to be crucial for maintaining connections, sharing information, and staying informed, driving sustained internet usage and driving revenue growth for telecommunications companies,” Egwim said.
Telecommunications was during the above period only second to the finance and insurance sector, which grew by 29,7 percent y/y in Q4 23, compared with 28,2 percent y/y recorded in Q3 23.
The oil sector contributed 4,7 percent to the GDP in Q4 2023. Nigeria is Africa’s largest producer of crude oil but suffers intermittent shortages. It imports almost all its refined fuel needs because of limited capacity and poor maintenance.
– CAJ News