ICT’s Contribution to Nigeria’s GDP Hits 19.78% in Q2 2024: NBS Report
The Information and Communications Technology (ICT) sector has significantly bolstered Nigeria’s economy, contributing 19.78% to the country’s real Gross Domestic Product (GDP) in the second quarter of 2024. This was disclosed by the National Bureau of Statistics (NBS) in its latest GDP report released on Monday.
The sector’s contribution marks a slight increase from the 19.54% recorded in the same period last year, highlighting the growing importance of ICT in Nigeria’s economic landscape. Additionally, the sector showed quarter-on-quarter growth, up from 17.89% in the first quarter of 2024.
The ICT sector’s growth was primarily driven by the telecommunications sub-sector, which alone contributed 16.36% to the real GDP in Q2 2024. Telecommunications continues to be a critical engine for economic activity, ranking as the third-largest contributor to Nigeria’s GDP, following crop production and trade, which contributed 20.35% and 16.39%, respectively.
The NBS report outlined that the ICT sector encompasses four key activities: Telecommunications and Information Services; Publishing; Motion Picture, Sound Recording, and Music Production; and Broadcasting. Among these, Broadcasting was the second-largest contributor within the ICT sector, adding 2.54% to the GDP.
In nominal terms, the ICT sector contributed 14.19% to Nigeria’s total GDP in Q2 2024. This figure represents a decrease from the 14.83% recorded in the same quarter of 2023 but is higher than the 13.12% recorded in the first quarter of 2024. The sector’s nominal growth was recorded at 11.86% year-on-year, a significant decrease from the 41.67% growth rate seen in Q2 2023.
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Under the administration of President Bola Ahmed Tinubu, the ICT sector has continued to make substantial contributions to Nigeria’s economy. According to a Whitepaper released by the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, the sector’s nominal value grew from N7.1 trillion in Q3 2023 to N8.35 trillion in Q4 2023. However, there was a slight decrease to N7.86 trillion in Q1 2024, reflecting broader economic patterns.
The Tinubu administration’s ambitious agenda for the digital economy, outlined in the Federal Ministry of Communications, Innovation & Digital Economy’s Strategic Blueprint, has been a driving force behind the sector’s growth. Key initiatives under this blueprint include the 3 Million Technical Talent (3MTT) program and investments in research initiatives such as the AI Collective and Fourth Industrial Revolution Technology Application (4IRTA).
These efforts aim to enhance the quality of Nigeria’s workforce and maximize opportunities in emerging technologies, further solidifying the ICT sector’s role in driving economic growth.
