Telecoms contributes N1.58tr to GDP in second quarter – NBS

• Defies recession

THE telecommunications sector of the Nigerian economy contributed N1.580 trillion to gross domestic product (GDP) in the second quarter of 2016, or 9.8 per cent, which represents an increase of 1.0 per cent points relative to the previous quarter.

According to a new data just released by National Bureau of Statistics, this is the largest contribution to GDP made from this sector in the rebased period, which emphasises that growth in telecommunications has remained robust when compared to total GDP.

NBS however, added a caveat that “due to differing seasonal patterns, the contribution from telecommunications is usually the largest in the second quarter.”

The report also noted that although growth in the sector remained positive, in contrast with the economy as a whole, year on year growth nevertheless dropped in real terms from 5.0 per cent in the previous quarter to 1.5 per cent, the lowest rate since the third quarter of 2011.

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, it noted.