Owning to its massive expansion, the Information and Communication Technology (ICT) industry’s contribution to Nigeria’s gross domestic product (GDP) increased to 9.76 percent in 2022, up from the 6.55 percent that was recorded in 2021. This sector is widely acknowledged as one of the most rapidly growing in Nigeria. According to Ajibola Olude, the executive secretary of the Association of Telecommunication Companies of Nigeria (ATCON), the sector is considered to have developed tremendously due to a number of different factors.
One of the factors he cited is the ongoing push to shift all government and commercial sector services online, which he said resulted in a rise in the organization’s use of data. He further stated that as a result of the efforts being made by the central bank of Nigeria to move toward a cashless policy economy, an increasing number of people and organizations are gradually adopting the use of USSD, mobile, and internet banking, amongst many other forms of electronic payment, which also tends to improve the state of the ICT sector.
Compared to 2021, a growth rate of 10.72% was reported in 2022.
The rise of the Nigerian economy is also attributed to more capital being acquired in the ICT industry through foreign direct investment. According to the data provided by the industry, it signifies that the information and telecommunications sector had the greatest growth rate when compared to other ICT sectors that are present in the economy. In 2022, the growth rate for the sector increased by 10.72 percent compared to the previous year’s figure of 7.28 percent, which was reported in 2021.
Also, in the past three years, the ICT sector has made three contributions to the country’s gross domestic product (GDP) that have never been seen before. These contributions are as follows: 14.07 percent in the first quarter of 2020, 17.92 percent in the second quarter of 2021, and 18.44 percent in the second quarter of 2022. It is noteworthy that those were the highest-ever contributions of the information and communications technology sector to Nigeria’s GDP.
Digital economy policy will speed up the digitalization process.
Prof. Isa Ali Pantami, Nigeria’s Minister of Communication and Digital Economy, spoke at the Digital Nigeria Day (DND) in 2022 with the theme “Digital Transformation: A Path To Sustainable Digital Economy,” he emphasized the importance of implementing a digital economy policy in order to speed up the process of digitalization and thereby improve the digital economy. The minister stressed the importance of digital platforms in fostering the digitization of business operations, which has resulted in substantial cost savings.
Therefore, he charged relevant stakeholders with maintaining their current levels of support for the ministry in order to hasten the expansion of the digital economy. One trend that may influence the future of information and communication technology is the widespread usage of cloud computing in the years leading up to 2023. Many individuals in Nigeria may go to cloud computing solutions in the future in order to store and process their data because firms in the country are continually searching for new ways to save costs and increase their productivity.
Increase in internet and mobile services subscribers expands the sector.
As a result of the growth that was seen in the industry during the fourth quarter (Q4) of the year 2020, it became the sector of the Nigerian economy that was expanding at the quickest rate and the only sector to have risen by double digits. It reportedly had a significant part in helping Nigeria recover from the recession. Operators in the ICT sector revealed that the sector’s expansion is largely due to the rising number of people subscribing to internet and mobile services and the widespread use of broadband internet access.
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Nigeria’s ICT Sector surges by 9.76% in 2022 – This sector is one of the rapidly growing that contributes significantly to GDP. – Express your point of view.
I’m happy the Nigeria ICT sector is already growing sporadically. It really shows we are doing well enough. I just hope we can do more to make it easier for us.
More money being gained in the IT sector through foreign direct investment is another factor contributing to the expansion of the Nigerian economy.
Nigeria’s ICT Sector surges by 9.76% in 2022. Thank god that we are improving on ICT sector
The minister emphasized the role that digital platforms play in encouraging the digitization of business processes, which has led to significant cost savings.
This is really good to hear our ICT is evolving and growing we need to keep up the good work so we can go higher than this and contribute more to our GDP
The Information and Communication Technology industry’s contribution to Nigeria’s gross domestic product has increased significantly in recent years due to the country’s rapid industrialization of the sector.
It is generally agreed that the industry as a whole has made remarkable strides because of a variety of contributing elements.
It’s crazy to think that as a result of the efforts that are being made by the central bank of Nigeria to move toward a cashless policy economy, the country’s government is considering introducing a new currency.
The growth of the Nigerian economy can also be ascribed to the increased capital that has been obtained in the information and communications technology industry as a result of FDI.
It is possible that in the not too distant future, many people in Nigeria may turn to cloud computing solutions in order to store and process their data.
It is significant that such contributions to Nigeria’s gross domestic product came from the information and communications technology industry at their all-time greatest levels.
For the purpose of accelerating the growth of the digital economy, it is important that our relevant stakeholders keep their support for the ministry at the same level it is currently at.
It’s inspiring to know that ICT in the country is developing and expanding, but we must maintain this momentum if we want to increase our GDP growth rate even further.
These historically high contributions to Nigeria’s GDP came from the country’s booming communication and information technology sector, which is a key economic driver.
It is crucial that our relevant stakeholders maintain their existing levels of support for the ministry in order to expedite the expansion of the digital economy.
The sector as a whole has made tremendous progress thanks to a number of factors, which is widely acknowledged.
Truly, the Nigeria’s ICT sector is fast surging at a very high rate as more people adopt the cashless policies and the use of internet for daily transaction. More will still adopt this process.
The importance of digital platforms attracts loads of benefit that would have positive impacts on the growth of country. It should be encourage as the it will boost the economy.
Information Communication Technology is a fast growing sector in Nigeria with more people joining by the day. Since the introduction of cashless policy more people are taken their business to the internet and transaction were done online too.