ICT Powers Up: Contributes 15.97% to Nigeria’s Q3 2023 Real GDP

In Q3 2023, Information and Communications Technology (ICT) played a significant role in contributing 15.97% to Nigeria’s real Gross Domestic Product (GDP), as revealed by the National Bureau of Statistics (NBS) in its latest GDP report released on Friday. This indicates a growth in contribution compared to the 15.35% recorded in the same period last year.

While the Q3 contribution is noteworthy, there is a decline from the Q2 2023 figure when the ICT sector contributed 19.54% to the real GDP. The NBS attributes this decrease to various factors within the sector.

The ICT sector encompasses four key activities: Telecommunications and Information Services, Publishing, Motion Picture, Sound Recording, and Music Production, and Broadcasting. Among these, telecommunications emerged as the leading contributor, accounting for 13.50% of the real GDP with a notable growth rate of 6.69% year-on-year.

The telecom industry, dominated by major players such as MTN, Globacom, Airtel, 9mobile, and Internet Service Providers (ISPs), has not only sustained its growth within the sector but also significantly influenced activities across other sectors of the economy.

Broadcasting, another sub-sector within ICT, made a noteworthy contribution of 1.39%, closely following telecommunications in terms of its impact on the overall GDP.

Examining the nominal contribution of the ICT sector, it accounted for 11.57% of the total Nominal GDP in Q3 2023. This reflects an increase from the 9.58% recorded in the same quarter of 2022 but is lower than the 14.83% contribution in the preceding quarter.

Despite the decline in nominal contribution, the ICT sector maintained a growth rate of 6.69% in real terms year-on-year. However, this represents a 3.84% decrease from the rate recorded in the corresponding period of 2022.

Quarter-on-quarter, the sector exhibited a growth of -10.30% in real terms. In the context of the total real GDP, the ICT sector contributed 15.97% in the third quarter of 2023, surpassing the 15.35% recorded in the same quarter of the previous year but falling short of the 19.54% contribution in the preceding quarter.

Zooming out to the broader economic landscape, Nigeria’s GDP demonstrated a growth of 2.54% in the third quarter of 2023, a slight increase from the 2.51% recorded in Q2 2023. This growth rate also surpasses the 2.25% recorded in the third quarter of 2022.

The services sector played a pivotal role in driving the overall GDP performance, growing by 3.99% and contributing 52.70% to the total GDP. Additionally, the agricultural sector experienced growth at 1.30%, a marginal decline from the 1.34% recorded in the corresponding quarter of 2022.

The industry sector displayed positive growth at 0.46%, indicating an improvement from the -8.00% recorded in the same quarter of the previous year. This diverse performance across sectors underscores the dynamic nature of Nigeria’s economic landscape, with ICT emerging as a key player despite some quarterly fluctuations.