Nigeria’s Information and Communications Technology (ICT) sector has contributed 19.78% to the country’s real Gross Domestic Product (GDP) in the second quarter of 2024, according to the latest data from the National Bureau of Statistics (NBS). The NBS report, released on Monday, highlighted a marginal increase from the 19.54% recorded in the same period last year, indicating a steady rise in the sector’s economic impact.
Quarter-on-quarter analysis shows the ICT sector also experienced growth compared to the preceding quarter, where it contributed 17.89% to the real GDP in Q1 2024. This consistent performance signals the sector’s growing influence on Nigeria’s economy, driven largely by advancements in telecommunications and other digital services.
The ICT sector comprises four main activities: Telecommunications and Information Services; Publishing; Motion Picture, Sound Recording, and Music Production; and Broadcasting. Notably, the telecommunications sub-sector was the most significant contributor, accounting for 16.36% of the GDP in real terms, making it the third-largest contributor behind crop production and trade.
The telecommunications industry, dominated by major players like MTN, Globacom, Airtel, and 9mobile, continues to drive economic activities across various sectors. The closest sub-sector in terms of contribution was Broadcasting, which added 2.54% to the GDP, further showcasing the diverse impact of the ICT sector on the economy.
In nominal terms, the ICT sector contributed 14.19% to the total Nominal GDP in Q2 2024. This figure was slightly lower than the 14.83% recorded in the same quarter of 2023 but higher than the 13.12% contribution in the preceding quarter, reflecting the sector’s resilience despite economic challenges.
Year-on-year growth for the sector in nominal terms was recorded at 11.86%, a significant decrease from the 41.67% growth seen in the same quarter of 2023. This decline highlights the fluctuating nature of the sector, which nonetheless remains a key driver of economic activity.
The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, in a Whitepaper released in June, emphasized the significant contributions of the ICT sector to the economy during President Bola Ahmed Tinubu’s tenure. He attributed the growth to the administration’s ambitious digital economy agenda, which includes initiatives like the 3 Million Technical Talent (3MTT) program and investments in emerging technologies.
These initiatives, according to Dr. Tijani, are aimed at enhancing Nigeria’s workforce and maximizing opportunities in the digital economy. The strategic focus on technological innovation, as outlined in the Federal Ministry’s Strategic Blueprint, is expected to further drive economic growth and solidify the ICT sector’s role as a pillar of Nigeria’s economic development.