Entrepreneurs confronted with the rubble of their demolished businesses will need more reassurance.

Information communication technology (ICT) experts are pointing to the ridiculously slow rate of broadband penetration in the country as a major cause for slow growth in the sector in the second quarter of 2016.
They say this needs to be changed as technology offers the fastest opportunity for meaningful growth.

Reports from the National Bureau of Statistics (NBS) show that in nominal terms, the ICT sector slowed by 6.66 percent (year on year) in the second quarter of 2016, which was 18.30 percent below the growth rate of 11.64 percent recorded in Q2 of 2015, and 15.35 percent points lower than that recorded in the preceding quarter.

It has been shown that development of broadband infrastructure and internet penetration drive economic growth that places an economy on the frontiers at achieving a digital revolution and a knowledge-based economy characterised by the creation of new industries and introduction of significant efficiencies into education, public safety, health care, energy management and e-governance.

A key area which the availability of internet broadband services contribute to economic development is in the area of research for health, as the availability of broadband allows access to a much broader range of information, data and specimen for tests.

For education, availability of internet creates an opportunity to access a wealth of knowledge through e-libraries, online professional exams and interviews, distance learning and the likes.

Funke Opeke, CEO MainOne said; “Our GDP is falling, we are in a recession and there is an opportunity to use technology to grow the economy, but sadly work has not even started in the North Central and Lagos regions that have been licensed for broadband roll out.”

Expanding internet access and digital literacy will enhance economic development, education, and good governance in the country, which will create a ripple effect on the economy by growing its GDP.

Although the non- oil sector including ICT and telecommunications sector have contributed 12.62 percent to Nigeria’s total nominal GDP in Q2, reports say this is lower than the 13.89 percent recorded in the same quarter of last year.

According to Lanre Ajayi, past president of  the Association of Telecommunications Companies of Nigeria, (ATCON) “the sector is growing but certainly not fast enough. I believe we can do better.”

Ajayi told BusinessDay in a telephone interview that “the biggest factor to the slowdown in development in the industry is the delay in implementing the National Broadband Plan (NBP). The government needs to begin the issuance of infrastructure company licenses (infraco) to winning bidders in order for them to roll out broadband and deepen penetration.”

In the second quarter of 2016, the nation’s GDP declined by -2.06 percent (year on year) in real terms. This was lower by 1.07 percent points from the growth rate of -0.36 percent recorded in the first quarter. This was clearly as a result of the decline in oil sector revenues which the country was heavily dependent on. ICT industry analysts however believe that the situation can be turned around with more focus on the sector and internet penetration.
Research on the impact of broadband on GDP growth from the International Telecommunications Unit (ITU) shows that in low and middle income economies, a 10 percent increase in broadband penetration yields an additional 1.38 percent in GDP growth.

Broadband has become a priority of the 21st century economy and its power to transform and catalyse the economy and social growth cannot be overemphasised.

Analysts say that there are concerns over the slow pace of the Nigerian National Broadband Plan (NBP) which may not meet the supposed 80 percent population target of wireless mobile broadband coverage by 2017 as formally proposed.

“We have realised that road, water and electricity are no longer enough for economic growth in any country and we have noticed that the internet is essential in achieving economic growth,” Ann Mei Chang, chief innovation officer at the United States Agency for International Development (USAID) said while addressing journalists during her visit to Nigeria recently.

Although the sector grew by 1.35 percent ( year on year) in real terms, in the Second Quarter of 2016, compared to the rate recorded in the corresponding period of 2015, this was 4.91 percent points lower, and it was also lower by 2.71 percent points when compared with rate recorded in Q1 of 2016.

“The main driver of this growth was telecommunications and information services in which growth eased as a result of lower active subscribers but broadcasting also contributed significantly. Quarter on quarter, the sector exhibited growth of 6.72 percent in real terms, but of total real GDP, the sector contributed only 12.68 percent in the second quarter of 2016, lower than in the same quarter of the previous year, and the preceding quarter, in which it represented 12.25 percent and 11.98 percent of the totals respectively,” according to NBS statistics.

Pius Okigbo, immediate past president of Institute of Software Practitioners of Nigeria (ISPON) told BusinessDay that the growth rate could definitely be more but for the lack of focus on software and internet.
“With focus on developing our local software and internet penetration, we can begin to create employment and this would definitely create a boom in the economy,” Okigbo said.