The strategic decision to rebase Nigeria’s GDP at the end of January 2025 is anticipated to highlight notable expansion in industries like the Blue and Marine Economy, the Creative Economy, the Arts, Culture, Tourism, Information and Communication Technology (ICT), and the Innovation and Digital Economy. This recalibration aims to give a more realistic picture of the country’s economic situation, which may draw in more domestic and foreign investment. Experts perceived that the ICT and entertainment industry are expected to grow at the fastest rates as the rebasing will help to clarify their economic worth.
Over the past decades, Nigeria’s ICT industry has been incredibly resilient, becoming a vital component of the country’s economic growth. The ICT sector increased Nigeria’s real Gross Domestic Product (GDP) by around 20% in the second quarter of 2024. Also, the growth of the digital technology sector in recent years demonstrates the strong potential to serve as a catalyst for economic growth, particularly as the Nigerian government works to diversify the country’s Economy away from its traditional reliance on the oil and gas sector.
Creative economy thrives with foreign investment and growth.
Similarly, the creative sector, which includes the arts, culture, and entertainment, has also experienced strong expansion. With a projected GDP contribution of $5.6 billion in 2022, Nigeria’s Creative Economy has shown a high prospect, with main sectors including visual media ($2.7 billion), music ($1.4 billion), and Fashion ($600 million). The motion picture and music recording industries contributed ₦154 billion ($197.6 million) to the GDP in 2023. Notwithstanding obstacles including low local Revenue generation and inadequate infrastructure, the industry is nevertheless thriving because to foreign Investment and recognition.
Even prior to the COVID-19 epidemic, both the creative and ICT industries have been growing. Recognizing their revolutionary potential, the Nigerian government has given these areas a lot of attention. Priority has been given to projects that support the digital economy, encourage cultural exports, and improve the Infrastructure for tourists. Key industries like the creative economy, tourism, the marine and blue economy, and the information and communication technology sector are anticipated to gain significantly from the impending rebasing of Nigeria’s GDP.
ICT and creative economy set for growth with updated estimates.
Investors and policymakers are likely to find these businesses more appealing as a result of the recalibration, which will update the base year to 2019 for economic calculations and show the full extent of their recent growth. One of the most significant expectations from the GDP is a more precise evaluation of the ICT sector, which has continuously demonstrated resilience and growth. ICT was one of the main forces behind Economic Growth in Nigeria in 2024, accounting for around 19.78% of the country’s real GDP.
With the rebasing, this figure is anticipated to increase as the updated estimates would more accurately reflect the Fintech industry’s growth, the Nigerian economy’s rapid digitization, and the increasing power of tech entrepreneurs. Investor confidence will rise with a stronger value, which might also draw in additional government funding and venture capital to spur innovation. It is anticipated that the creative economy—which encompasses Nollywood, music, fashion, and the arts—will also see significant growth. With Nollywood being the second-largest film business in the world by output and Afrobeats topping international charts, the sector has been one of Nigeria’s most potent cultural exports.
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However, its actual economic impact has been underreported historically. The rebasing is expected to better represent Nigeria’s entertainment industry’s contribution and establish it as a significant economic force. Nigeria’s standing as Africa’s creative center will be further cemented as a result of increased domestic and international investment in infrastructure, streaming services, and content creation. Overall, the rebasing is expected to reshape Nigeria’s economic outlook by placing these vibrant industries at the center of national growth objectives.