Stakeholders call on FG to maintain 18.44% ICT contribution – New Telegraph
Stakeholders in the telecommunications sector urged the federal government to maintain the feat achieved so far in the sector to grow the economy. The Nigerian Bureau of Statistics revealed that the sector contributed 18.44% to the country’s Gross Domestic Product (GDP) in the second quarter of 2022, surpassing all other non-oil sectors.
As indicated in the SNB report, in nominal terms, in the second quarter of 2022, the growth of the sector was recorded at 14.11% (year-on-year), an increase of 14.18 percentage points compared to the -0.07% rate recorded in the same quarter of 2021 and 6.43 percentage points lower than the rate recorded in the previous quarter. The quarter-on-quarter growth rate recorded in the second quarter of 2022 was 14.13%.
The information and communication sector contributed 12.12% to the total nominal GDP in the second quarter of 2022, which is lower than the rate of 12.22% recorded in the same quarter of 2021 and higher than the 10, 55% that it contributed in the previous quarter. The sector, in the second quarter of 2022, recorded a growth rate of 6.55% in real terms, year-on-year. Compared to the rate recorded during the corresponding period of 2021, there was an increase of 0.99 percentage points. Quarter after quarter, the sector posted a growth of 13.41% in real terms.
To total real GDP, the sector contributed 18.44% in the second quarter of 2022, more than the same quarter of the previous year, in which it accounted for 17.92%, and more than the previous quarter during which it represented 16.20%. Nigeria’s gross domestic product (GDP) grew by 3.54% (year-on-year) in real terms in the second quarter of 2022.
This growth rate increased from 5.01% in the second quarter of 2021, when rapid growth was recorded following the consequences of COVID-19 on the economy in the second quarter of 2020. Moreover, the recent increase price had a negative impact on Q2 2022 performance. Q2’22 growth rate decreased by 1.47% compared to Q2’21 growth rate of 5.01% and increased by 0.44% vs. 3.11% in Q1’22. However, on a quarterly basis, real GDP increased by -0.37% in Q2’22, reflecting weaker economic activity in Q2’22 than in the previous quarter. The non-oil sector grew by 4.77% in real terms during the reference quarter (Q2’22). This rate was 1.97 percentage points lower than the rate recorded in the same quarter of 2021 and 1.31 percentage points lower than in the first quarter of 2022. “This sector was pulled in the second quarter of 2022 mainly through information and communication (telecommunication); Exchange; Finance and Insurance (Financial Institutions); Transport (Road Transport); Agriculture (plant production) and manufacturing (food, beverages and tobacco), representing positive GDP growth. “In real terms, the non-oil sector contributed 93.67% to the country’s GDP in the second quarter of 2022, which is higher than the share recorded in the second quarter of 2021 which was 92.58% and higher. to that recorded in the first quarter of 2022. as 93.37%,” the report states. The Minister of Communication and Digital Economy, Professor Isa Pantami, attributed the feat to the policies enacted to promote the sector by the federal government. He added that the growing contribution of the Information and Communication Technology (ICT) sector to Nigeria’s Gross Domestic Product (GDP) was a result of the growth of the digital economy in the country.
Pantami said the diligent implementation of the National Digital Economy Policy and Strategy (NDEPS) for a digital Nigeria, stakeholder engagement and the creation of an enabling environment have all played an important role. in this achievement. While noting that the Q2’22 figure was ICT’s highest contribution to GDP, Pantami described it as unprecedented and marks the third time the sector has made an unprecedented contribution to Nigeria’s GDP during his tenure. as Minister responsible for the sector. Initially, the Federal Government had announced its intention to increase the sector’s contribution to GDP to 30% by 2025. This was disclosed in its “Nigeria Medium Term National Development Plan 2021-2025: Volume II”. Meanwhile, in separate interviews with New Telegraph, stakeholders and experts said the exploit could be sustained if the government takes action. A technology expert, Johnson Mabogunje, said there was a need for the government to encourage and promote local content. Speaking on behalf of telecommunications subscribers, National Association of Telecommunications Subscribers (NATCOMS) Chairman Adeolu Ogunbanjo said the government must regulate taxes so as not to frustrate the sector and sustain its growth.
“The sector has enormous potential to revive the national economy and replace oil. However, the government should not kill it with multiple taxation. If the sector can still thrive despite all the frustrations, it can contribute over 50% to GDP if left to thrive and not overburdened,” he said. For his part, the National Chairman of the Association of Telephone, Cable Television and Internet Subscribers of Nigeria (ATCIS), Prince Sina Bilesanmi, said there was a need for more collaboration between government, telecom operators and stakeholders to grow the sector. enviable level. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) insisted that the government should prioritize creating a conducive business environment for the operators. The Association noted that many operators, especially local SMEs, had been frustrated by the bankruptcy. Meanwhile, an official with the Nigerian Communications Commission (NCC) told New Telegraph that the commission is working tirelessly to ensure the sector contributes more to GDP. It is believed that the introduction of the 5G network would further increase revenue generation for the sector.