The telecommunications and information services sector of the Nigerian economy recorded a Gross Domestic Product (GDP) growth of 11.54% in the second quarter (Q2) of 2018, contributing N2.5 trillion to the nation’s GDP.
TheNewsGuru (TNG) reports this is according to the GDP report released by the National Bureau of Statistics (NBS) on Monday.
According to the report, the telecommunications and information services, under the information and communication sector, grew by 11.54% in Q2 2018 from 1.88% in Q1 2018 and -3.28% in Q4 2017.
TNG reports the information and communication sector is composed of the four activities of telecommunications and information services; publishing; motion picture, sound recording and music production; and broadcasting.
According to the NBS, in nominal terms, the second quarter of 2018 saw the sector grow by 15.34% (year-on-year), a 12.68% points increase from the rate of 2.66% recorded in the same quarter of 2017, and 10.83% points higher than rate recorded in the preceding quarter. The quarter on quarter growth rate recorded in the current quarter is 13.72%.
“The information and communications sector contributed 11.22% to total nominal GDP in the 2018 second quarter, lower than the rate of 11.26% recorded in the same quarter of 2017 but higher than the 10.64% it contributed in the preceding quarter.
“The sector in the second quarter of 2018 recorded a growth rate of 11.81% in real terms, year on year. From the rate recorded in the corresponding period of 2017, there was an increase of 12.96% points. Quarter on quarter, the sector exhibited a growth of 13.02% in real terms.
“Of total real GDP, the sector contributed 13.63% in 2018 second quarter, higher than in the same quarter of the previous year in which it represented 12.37% yet higher than the preceding quarter, in which it represented 12.41%,” the NBS report revealed.
While publishing contributed N9 billion to the nation’s GDP; motion picture, sound recording and music production contributed N294.8 billion; and broadcasting contributed N606.9 billion.
The NBS report further revealed that the non-oil sector, which contributed 91.45% to the nation’s GDP, was mainly driven by the information and communication services sector.
TNG reports the non-oil sector grew by 2.05% in real terms during the reference quarter, representing 1.60% points increase compared to the rate recorded for the same quarter in 2017, and 1.29% points over the first quarter of 2018.
According to the NBS, in the second quarter of 2018, Nigeria’s GDP grew by 1.50% (year-on-year) in real terms to N16.58 trillion.
Growth in Q2 2018 was 0.79% points higher when compared to the second quarter of 2017 which recorded a growth of 0.72%, but –0.45% points slower than 1.95% recorded in the first quarter of 2018. On a quarter on quarter basis, real GDP growth was 2.94%.
In the quarter under review, aggregate GDP stood at N30.69 trillion in nominal terms. This represents a 7.85% increase in nominal GDP when compared to the preceding quarter (N28.46 trillion) and 13.57% increase when compared to the corresponding quarter of 2017 (N27.03 trillion).
The oil sector contributed 8.55% to total real GDP in Q2 2018, down from figures recorded in the corresponding period of 2017 and the preceding quarter, where it contributed 9.04% and 9.61% respectively.
Real growth of the oil sector was -3.95% (year-on-year) in Q2 2018 indicating a decrease by –7.48% points relative to the rate recorded in the corresponding quarter of 2017. Growth also decreased by –18.72% points when compared to Q1 2018. Quarter-on-Quarter, the oil sector recorded a growth rate of –8.34% in Q2 2018.
“Broadly speaking, growth in Q2 2018 was driven by developments in the non-oil sector as services sector recorded its strongest positive growth since 2016.
“However, the relatively slower growth when compared to Q1 2018 and Q2 2017 could be attributed to developments in both the oil and non-oil sectors,” the NBS noted.
TNG reports the telecommunications and information services GDP data were computed from the gross output of revenue from telephone, telex, Facsimile, telegraph, and other income from satellite and internet services; and intermediate consumption of transit fees, operational expenditure, minor repairs and maintenance and other expenses.