Broadband Penetration Wilts as Telecoms Contribution to GDP Declined to 13.94% in Q3 2024

Emma Okonji

Nigeria’s broadband penetration still crawls at 45.61 per cent, despite the slight improvement it recorded last year, when it moved up from 43.16 per cent in November to 44.43 per cent in December, before reaching 45.61 per cent in January this year, according to the recent statistics released by the Nigerian Communications Commission (NCC).

Although the growth in broadband penetration has been slow and steady since October last year, telecoms contribution to Gross Domestic Product (GDP),  dropped from 16.36 per cent in second quarter 2024 to 13.94 per cent in third quarter 2024, according to the same statistics released by the NCC.

The statistics, which THISDAY obtained from the official website of NCC, revealed that broadband penetration level had reached 44.04 per cent in July 2024, but dropped to 43.26 per cent in August 2024, with a further drop to 41.56 per cent in September 2024. It however increased slightly to 42.24 per cent in October 2024, with a further increase to 43.16 per cent in November 2024. Broadband penetration increased again to 44.43 per cent in December 2024, before reaching 45.61 per cent in January 2025.

Broadband penetration is determined by broadband subscription, which is calculated in millions. In July 2024, broadband subscriptions reached 95 million, but dropped to 93 million in August 2024, with a further drop to 90 million in September 2024. It however increased slightly to 91 million in October 2024, with a further increase to 93 million in November 2024. Broadband subscriptions increased again to 96 million in December 2024, before reaching 98 million in January 2025.

Broadband is the transmission of wide bandwidth data over a high-speed internet connection.

While broadband subscription refers to the high-speed internet service that operators offer through fixed, wired and wireless connections, broadband penetration refers to the proportion of the Nigerian population that has access to high-speed internet connectivity.

Although telecoms contribution to GDP, is a function of a combination of broadband subscriptions and broadband penetration, among other variables, the NCC statistics however revealed that telecoms contribution to GDP dropped in third quarter 2024 to 13.94 per cent, after reaching 16.36 per cent in second quarter 2024.

According to the statistics, as at Q1 2023, telecoms contribution was 14.13 per cent, which increased to 16.06 per cent in Q2 2023, before dropping to 13.50 per cent in Q3 2023, but increased to 14 per cent in Q4 2023.

In Q1 2024, it increased again to 14.58 per cent, with a further increase to 16.36 per cent in Q2 2024. Telecoms contribution to GDP however dropped to 13.94 per cent in Q3 2024, according to the latest statistics released by the NCC.

Industry analysts are however optimistic that broadband penetration and telecoms contribution to GDP will improve with quality of service, given the reforms taking place in the telecoms sector, among which is the recent hike the cost of telecoms tariff for voice and data.

Chief Corporate Services and Sustainability Officer at MTN Nigeria, Tobechukwu Okigbo, had said at a telecoms forum in Lagos that the 50 per cent hike in telecoms tariff would help save the telecoms industry from sliding into inflation and that in less than three months from the date of implementation of the 50 per cent tariff hike, Nigerians would begin to experience improved quality service across networks.