Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 6)

A report on the telecommunications sector released by the National Bureau of Statistics shows that in Q4 2021, a total of 195.4 million subscribers were active on voice compared to 204.6 million subscribers recorded in Q4 2020 and 190.9 million subscribers in Q3 2021.3 This implies a 4.47 percent decrease in voice subscriptions on a year-on-year basis and an increase of 2.42 percent on a quarter-on-quarter basis. Relatedly, a total of 141.9 million subscribers were active on the internet in Q4 2021 compared to 154.3 million recorded in Q4 2020 and 140.3 million in Q3 2021. This signifies a 7.99 percent decrease in internet subscriptions on a year-on-year basis and an increase of 1.14 percent on a quarter-on-quarter basis. The decrease in the number of active subscribers on voice and the internet is partly due to the directive by the government in December 2020. The government directed telecommunication companies to suspend the sales and reactivation of SIM cards to embark on an audit of the subscriber registration database in April 2021. The audit by the government was long overdue and a step in the right direction towards strengthening data security. However, the government needs to partner with telecommunication companies to develop strategies that would minimise interruption of services accompanied with the audit exercises in the future. This is important given the role of the telecommunication sector in expanding the digital economy. Also, the government needs to intensify efforts in strengthening the service rendered by the telecommunication companies to their customers.

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