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| Nigeria’s ICT Sector Drives Economic Growth, Contributing 19.78% to Real GDP in Q2 2024 Amid Digital Economy Agenda |
The Information and Communications Technology (ICT) sector has made a significant impact on Nigeria’s economy, contributing 19.78% to the country’s real Gross Domestic Product (GDP) in Q2 2024. This marks a slight increase from the 19.54% recorded in the same period the previous year, according to the National Bureau of Statistics (NBS). The sector also saw a quarter-on-quarter rise, up from 17.89% in Q1 2024.
Telecommunications Lead ICT Sector Growth
The ICT sector’s year-on-year growth rate of 4.44% in Q2 2024 was largely driven by the telecommunications sub-sector, which alone contributed 16.36% to the GDP in real terms. This made telecommunications the third-largest contributor to Nigeria’s real GDP, following only crop production and trade, which contributed 20.35% and 16.39%, respectively.
Dominated by major mobile network operators like MTN, Globacom, Airtel, 9mobile, and Internet Service Providers (ISPs), the telecom industry plays a crucial role in driving economic activities across various sectors.
Nominal GDP Contribution Sees Mixed Performance
The NBS data also revealed that the ICT sector contributed 14.19% to Nigeria’s total nominal GDP in Q2 2024, a decrease from the 14.83% recorded in the same quarter of 2023 but an improvement from the 13.12% in the preceding quarter.
In nominal terms, the sector grew by 11.86% year-on-year, though this represented a sharp decrease from the 41.67% growth rate recorded in Q2 2023 and was 2.08% points lower than the growth rate in Q1 2024.
The growth in Nigeria's ICT sector is closely tied to the strategic initiatives of President Bola Ahmed Tinubu's administration. A Whitepaper released in June 2024 by the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, highlighted the sector's significant contributions between Q3 2023 and Q1 2024. During this period, the nominal value of the ICT sector’s contribution to the economy rose from N7.1 trillion in Q3 2023 to N8.35 trillion in Q4 2023, before experiencing a slight decline to N7.86 trillion in Q1 2024.
Strategic Initiatives Driving Digital Economy Growth
Dr. Tijani attributed the sector's growth to the ambitious agenda of Tinubu’s administration for the digital economy. The Federal Ministry of Communications, Innovation & Digital Economy’s Strategic Blueprint aims to stimulate Nigeria’s economic growth through technological innovation.
This blueprint has led to initiatives such as the 3 Million Technical Talent (3MTT) program and investments in research initiatives like the AI Collective and Fourth Industrial Revolution Technology Application (4IRTA). These efforts are designed to enhance the quality and quantity of Nigeria's workforce while maximizing opportunities presented by emerging technologies to further grow the digital economy.
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