Activities in Information and Communications Technology (ICT) contributed 19.54% to Nigeria’s real Gross Domestic Product (GDP) in Q2 2023.
The National Bureau of Statistics (NBS) disclosed this in the Q2 GDP statistics. This shows an increase in contribution compared to the 18.44% recorded in the same period last year.
Quarter on quarter, the sector also recorded a growth in real GDP contribution when compared to the 17.47% it added in Q1, 2023.
According to NBS, the ICT sector comprises the four activities of Telecommunications and Information Services; Publishing; Motion Picture, Sound Recording, and Music Production; and Broadcasting.
Telcom leads
While the ICT sector recorded a growth rate of 11.64% in real terms year on year in the quarter under review, the growth was driven largely by activities in the telecommunications sub-sector, which contributed 16.06% to the GDP in the real term.
The telecom industry, which is dominated by mobile network operators including MTN, Globalcom, Airtel, 9mobile, and Internet Service Providers (ISPs) is also driving a lot of activities in every other sector of the economy.
The closest sub-sector to telecoms in the ICT sector in terms of contribution was Broadcasting, which added 2.59%
Other key highlights for the ICT sector
The ICT sector contributed 14.83% to the total Nominal GDP in the second quarter of 2023, 12.12% recorded in the same quarter of 2022, and higher than the 13.23% it contributed to the preceding quarter.
In nominal terms, the sector recorded 41.67% growth in the quarter under review, a 27.56% increase from the rate of 14.11% recorded in the same quarter of 2022, and 0.17% points lower than the rate recorded in the preceding quarter.
The general performance of the economy
According to the NBS data, Nigeria’s Gross Domestic Product (GDP) grew by 2.51% year-on-year in real terms in the second quarter of 2023, which is 0.2% points higher than 2.31% recorded in the previous quarter but 1.03% lower compared to 3.54% recorded in the corresponding period of 2022.
The performance of the GDP in the second quarter of 2023 was driven mainly by the Services sector, which recorded a growth of 4.42% and contributed 58.42% to the aggregate GDP.
The agriculture sector grew by 1.50%, an improvement from the growth of 1.2% recorded in the second quarter of 2022.
The growth of the industry sector stood at -1.94% relative to -2.3% recorded in the second quarter of 2022. In terms of share of the GDP, agriculture, and the industry sectors contributed less to the aggregate GDP in the second quarter of 2023 compared to the second quarter of 2022.