The Information and Communications Technology (ICT) sector contributed significantly to Nigeria’s economic performance in the second quarter of 2024, as reported by the National Bureau of Statistics (NBS). The sector’s contribution to the real Gross Domestic Product (GDP) was 19.78%, reflecting a slight increase from the 19.54% recorded in the same period in 2023.
Quarter-on-Quarter Growth: The ICT sector’s contribution also increased when compared to the first quarter of 2024, where it accounted for 17.89% of the real GDP. This growth was primarily driven by the telecommunications industry, which is a key component of the ICT sector.
Sector Breakdown: The NBS classifies the ICT sector into four main activities:
Telecommunications and information services.
Publishing.
Motion picture, sound recording, and music production.
Broadcasting.
Nominal GDP Contribution: In nominal terms, the sector grew by 11.86% year-on-year in Q2 2024. However, this was a decrease of 29.81 percentage points compared to the 41.67% growth recorded in the same quarter of 2023. The sector’s contribution to nominal GDP in Q2 2024 was 14.19%, slightly lower than the 14.83% recorded in Q2 2023 but higher than the 13.12% recorded in the previous quarter.
Real GDP Growth Rate: The ICT sector recorded a real growth rate of 4.44% year-on-year in Q2 2024, a decrease of 4.16 percentage points from the corresponding period in 2023. However, on a quarter-on-quarter basis, the sector exhibited a real growth rate of 10.60%.
The telecommunications industry, dominated by major mobile network operators such as MTN, Globacom, Airtel, 9mobile, and various Internet Service Providers (ISPs), continues to drive growth within the ICT sector. This industry’s impact extends beyond the ICT sector, influencing activities across other sectors of the economy, thereby contributing to overall economic growth.
The ICT sector’s performance underscores its crucial role in Nigeria’s economic development, particularly in driving digital transformation and supporting various industries.
