Nigeria’s Telecom GDP Growth Rate On Steady Decline Amid Forex, Inflation Challenges
Source:Nairametrics The once-booming telecommunications sector in Nigeria has continued its downward spiral with a continuous decline in the Gross Domestic Product (GDP) growth rate over the last one year. According to the National Bureau of Statistics (NBS), the sector’s real GDP growth has steadily declined from 11.71% in the first quarter of 2023 to 5.17% by the second quarter of 2024. This significant drop is attributed to a challenging operating environment characterized by inflation and currency depreciation. While telecom operators are reporting revenue growth, the gains have been overshadowed by the broader economic challenges facing the sector. Industry stakeholders said the inability of these companies to adjust prices in line with the depreciating naira has eroded the real value of their earnings, limiting their overall growth. The forex debacle Aside from other peculiar challenges in the industry telecommunications companies in Nigeria are now grappling with hea...