ICT sector contribution to GDP hits 5-year high

The contribution of the Nigerian Information and Communication Technology (ICT) sector to the Gross Domestic Product (GDP) increased to 20.32 percent in Q3 2022, the highest in five years.

According to the Q3 report released by the National Bureau of Statistics (NBS), the sector saw an increase in growth of 9.15 percent in 2022 compared to the preceding years where it recorded 11.2, 15.9, 11.2, and 12.1 percent, respectively.

NBS reported that the non-oil sector grew by 4.27 percent in the third quarter of 2022, and was driven mainly by Information and Communication (Telecommunication), Trade, Transportation (Road Transport), Financial and Insurance (Financial Institutions); Agriculture (Crop Production) and Real Estate, accounting for positive GDP growth.

This growth is a result of the number of digital literacy in the economy, many Nigeria has been empowered with digital knowledge, especially on broadband penetration, Ajibola Olude, executive secretary of the association of telecommunication companies of Nigeria (ATCON) said.

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“The industry has also increased its service in the rural area, this means that technology is gradually advancing to the low and untented environment in the economy,” he said.

Data from the report disclosed that the nominal sector saw a 9.58 percent increase in the third quarter of 2022, higher than 9.22 percent recorded in the same quarter of 2021.

While the real sector recorded an increase of 0.87 percent from 15.35 percent recorded in 2022 and 14.20 percent recorded in 2021.

However, the country’s ICT sector comprises four activities – Telecommunications and Information Services, Publishing, Motion Picture, Sound Recording, and Music Production; and Broadcasting.

Conclusively, the sector’s growth was driven largely by revenue from telephone, telex, Facsimile, telegraph, and other income from satellite and internet services.