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Telecoms sector squeezes, still injects N1.398tn to GDP in Q3 2016

Though there was a sharp drop in its contributions to the Gross Domestic Product (GDP) in the third quarter of 2016 when compared Year-on-Year, its netted N1.4tn (1.11 percent growth in the real term) to the GDP to still remains the highest contributor to the economy by way of Foreign Direct Investments (FDIs) within the period.

The Gross Domestic Product constant basic prices for information and communication under the Telecommunications and Information Service as at Q1 of 2015 is N1.3Trillion and Q2 of 2015 is N1.5Trillion and Q3 of 2015 is N1.3Trillion and Q4 of 2015 is N1.6Trillion which is a total of N5.9Trillion for the year 2015.

Reports recently released by the National Bureau of Statistics (NBS) state that telecommunications contributed N1.398Trillion representing 1.11percent addition to the GDP. Although this figure is slightly lower than the N1.5 trillion recorded in quarter 2 of 2016, the NBS says the figures reflect the signs of the times.

The GDP for Telecommunication as at Q3 of 2016 under Information and Communication contracted 0.95% in Q3 2016 from 1.49% in Q2 2016 and 4.69% in Q3 2015.

The Information and Communication Sector contributed 9.9% to total Nominal GDP in third quarter of 2016, which is the same rate as recorded in the same Quarter of 2015, but lower than the 12.6% it contributed in the preceding quarter.

The sector grew by 1.11% in real terms, year on year in the Q3 of 2016 from the recorded rate in the period of 2015, which was 4.16% point lower and also lower by 0.25% points when compared with the rate recorded in the second quarter of 2016.

The International Standard Industrial Classification (ISIC Revision 4.0); is the international reference for the classification of productive activities. Its main purpose is to provide a set of activity categories that can be used for the collection and reporting of statistics.

Revisions of the ISIC on the Gross Output is based on the Revenue from telephone, telex, facsimile, telegraph and other income from satellite and internet services.  The Intermediate consumption while Transit fees, operational expenditure, minor repairs and maintenance and other expenses of the telecommunication and information services are recorded in the ISIC Report.