According to data from the National Bureau of Statistics (NBS), Nigeria’s information and communication technology (ICT) sector generated 17% of the nation’s actual gross domestic product (GDP) in the fourth quarter of 2024.
This indicates an increase compared to 16.35% in the previous quarter of 2024 and 16.66% in the same quarter of 2023.
The ICT sector’s yearly contribution to real GDP in 2024 was 17.68%, which was somewhat higher than the 17.34% reported in 2023, according to the NBS data.
Notwithstanding this expansion, the industry saw a decline in both nominal and real terms compared to the previous year.
Nominal growth falls year after year
The ICT sector expanded nominally by 11.57% year over year in Q4 2024, a considerable decline from the 39.57% growth observed in the same quarter of 2023.
- This is a drop of 28.00 percentage points. The sector contributed 11.75% of the nominal GDP in Q4 2024, with a quarterly nominal growth rate of 14.55%.
- While it is higher than the 11.30% contribution in Q3 2024, it is lower than the 12.52% contribution in Q4 2023.
- The sector’s annual contribution to nominal GDP decreased from 12.95% in 2023 to 12.48% in 2024.
Slowing growth in real GDP
In Q4 2024, the ICT industry expanded 5.90% year over year, a 0.42 percentage point decrease from the 6.32% growth in Q4 2023.
With a growth rate of 16.81%, the sector performed better each quarter.
However, compared to 2023, when it grew by 7.91%, the sector’s overall real GDP growth in 2024 was only 5.42%.
- The four activities that make up the ICT sector include publishing, motion picture, sound recording, music production, broadcasting, and telecommunications and information services, according to NBS.
- According to a breakdown of the sector’s contribution, the telecom subsector continues to be the key engine of ICT growth in Nigeria, contributing 14.40% of GDP in Q4 2024.
- According to NBS, in Q4 2024, the telecom sector was the third-largest contributor to the real GDP, behind the trade and crop production sectors, which contributed 15.1% and 23.42%, respectively.
The telecom sector also fuels numerous operations in every other area of the economy, which is dominated by mobile network carriers such as MTN, Globacom, Airtel, 9mobile, and Internet Service Providers (ISPs).
What To Note
Recently, the Nigerian Communications Commission (NCC) said it was collaborating with the Ministry of Communications, Innovation, and Digital Economy to implement measures to increase the telecom sector’s contribution to 25%.
According to Dr. Aminu Maida, the Executive Vice Chairman of the NCC, the sector is doing well with its current contribution of about 14%. Still, it may do better if the issues it faces are resolved.
