The Nigeria economy has greatly benefited from the strong presence of the ICT industry, which also continues to contribute highly in the ecosystem. A significant factor driving this growth is the widespread digital literacy across the country, as a considerable number of Nigerians have gained valuable knowledge in digital technologies, particularly in broadband penetration. The sector witnessed an impressive surge in telecom subscribers in 2022, resulting in a substantial boost to the Gross Domestic Product (GDP) contribution. This growth propelled the sector’s contribution to the economy to an impressive N12.32 trillion, reflecting its significant impact.
In the third quarter of 2023, the ICT sector in Nigeria played a crucial role in boosting the country’s real Gross Domestic Product (GDP) with a growth rate of 15.97 percent. This growth is primarily attributed to the telecommunications industry. Notably, the number of mobile telecom subscribers increased by 13.89 percent in the previous year, reaching a total of 222.23 million compared to 195.13 million in December 2021. This information was contained in the Q3 GDP statistics recently released by the National Bureau of Statistics (NBS).
6.69 percent contributed in real terms in the third quarter.
When compared to last year’s record of 15.35 percent at the same period, there was a noticeable rise in contribution observed. Nevertheless, in comparison with the figure reported in the previous quarter (Q2 2023), the sector showcased a decrease in Q3. According to NBS, the sector made a notable contribution of 19.54 percent to the real GDP in Q2, making the Q3 figure a decline. It is worth highlighting that, during the third quarter, the sector experienced a growth rate of 6.69 percent in real terms, year-on-year. To classify the sector, the NBS divided it into four divisions: Telecommunications and Information Services, Publishing, Motion Picture, Sound Recording, and Music Production, and Broadcasting.
This impressive progress is mainly attributed to the telecommunications sub-sector, substantially contributing 13.5 percent to the GDP in real terms. Broadcasting emerged as the nearest sub-sector to telecommunications within the ICT realm, contributing 1.39 percent to the sector. Further analysis of the actual contributions to the sector shows that telecoms and information services added a staggering N10.13tn, while publishing contributed N20.17bn, broadcasting contributed N1.38tn, while motion pictures, sound recording, and music production combined to contribute N796.53bn. This amounted to a grand total of N17bn in revenues in 2022.
NBS said the sector contributed 13.23% to nominal GDP.
As per the NBS data, in the third quarter of 2023, the ICT sector made a remarkable contribution of 11.57 percent to the total Nominal GDP. This figure surpassed the rate of 9.58 percent observed in the same quarter of the previous year. However, it was lower than the 14.83 percent contribution recorded in the preceding quarter. Furthermore, the sector exhibited a growth rate of 6.69 percent in real terms compared to the same period last year. The data also shows a decline of 3.84 percent compared to the rate observed during the same period in 2022.
Moreover, the sector experienced a significant 10.30% increase when comparing growth rates from one quarter to the next. In real terms, the sector contributed 15.97% to the total real GDP during the third quarter of 2023. This percentage is higher than the corresponding quarter of the previous year, where it accounted for 15.35%, but lower than the preceding quarter, where it represented 19.54%. The NBS also mentioned that in terms of nominal GDP, the sector contributed 13.23% in the first quarter of 2023, surpassing the 10.55% recorded during the same period in 2022, as well as the 10.42% it added in the previous quarter.
ICT has consistently played a transformative role.
On a nominal basis, there was a remarkable increase of 41.84% in the sector during this quarter under review. ICT has long been recognized as a vital force of power and a catalyst for societal and economic empowerment. In the realm of the digital economy, the sector has consistently played a transformative role in driving the growth and development of the nation. Despite encountering various setbacks, the ICT sector is projected to persevere and emerge as a substantial economic powerhouse for the country.