Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 42)

According to Telecommunications Sector Data for the second quarter (Q2) of 2022, released by the National Bureau of Statistics (NBS), Nigeria’s telecoms sector experienced a growth in both voice and internet subscriptions.3 The total number of active voice subscribers in Q2 2022 was 206.4 million, representing a 10.04 percent increase from 187.6 million subscribers in Q2 2021. Similarly, in terms of internet subscriptions, 151.3 million subscribers were recorded in Q2 2022, from the 140.2 million reported in Q2 2021. This indicates a growth rate of 7.96 percent on a year-on-year basis. An increase in active voice and internet subscribers will likely lead to increased transactions through digital platforms. In addition, the growth in subscribers suggests that for businesses, having an online presence is an excellent strategy to expand the reach of their products. In other words, businesses are no longer limited to physical stores alone. The increase in the number of subscribers also indicates that the digital economy’s contribution to the overall economy will continue to increase over the next few years. A way for the government to support the expansion of the digital economy is to address the issue of unreliable electricity supply. The unstable electricity supply makes network providers rely primarily on generators to power their equipment, thereby increasing their operating costs and the cost of doing business via the internet.

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