The Information and Communications Technology (ICT) sector continued to play a significant role in Nigeria’s economic landscape, contributing 15.97% to the country’s real Gross Domestic Product (GDP) in the third quarter of 2023.
This marks a notable increase from the 15.35% recorded during the same period last year, signifying the sector’s growing impact on the economy.
However, the sector witnessed a decline in contribution compared to the previous quarter, as data from the National Bureau of Statistics (NBS) revealed that in the second quarter of 2023, ICT contributed 19.54% to the real GDP, indicating a decrease in the third quarter.
The NBS report highlighted that within the ICT sector, telecommunications played a pivotal role, recording a growth rate of 6.69% in real terms year-on-year, contributing 13.50% to the GDP. The telecommunications sub-sector, which includes major mobile network operators and Internet Service Providers (ISPs) such as MTN, Globacom, Airtel, 9mobile, has been a major driver of economic activities across various sectors.
Broadcasting, another significant sub-sector within ICT, contributed 1.39% to the GDP in the third quarter of 2023.
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Regarding the nominal GDP, the ICT sector contributed 11.57% in the third quarter of 2023, marking an increase from 9.58% recorded in the same quarter of the previous year but a decline from the 14.83% contributed in the preceding quarter.
Overall, Nigeria’s economy showed a growth rate of 2.54% in the third quarter of 2023, slightly higher than the 2.51% recorded in the second quarter. This growth was primarily driven by the services sector, which grew by 3.99% and accounted for 52.70% of the total GDP. The agricultural sector witnessed a growth of 1.30%, while the industry sector exhibited growth of 0.46%, indicating an improvement from the negative growth (-8.00%) in the corresponding quarter of the previous year.
The report underscores the importance of the ICT sector in driving economic growth and its contribution to Nigeria’s overall GDP, while also highlighting the positive strides made in other key sectors, ultimately reflecting an uptick in the country’s economic performance in the third quarter of 2023.
