Data Shows ICT Sector Gains Ground Over 2023, Despite Quarterly Decline

The Information and Communications Technology (ICT) sector in Nigeria has demonstrated resilience in Q3 2024, contributing 16.35 percent to the nation’s real Gross Domestic Product (GDP).
While this is a decline from the 19.78 percent recorded in the previous quarter, it marks an improvement over the 15.97 percent contribution seen in Q3 2023, according to data from the National Bureau of Statistics (NBS).

A significant driver of ICT growth is the telecommunications subsector, which alone contributed 13.94 percent to real GDP. This positioned telecoms as the third-largest GDP contributor, following crop production (26.51 percent) and trade (14.78 percent).

Dominated by mobile network operators such as MTN, Globacom, Airtel, and 9mobile, the telecom industry continues to facilitate economic activities across other sectors. Broadcasting, the next-largest contributor within the ICT sector, added a modest 1.37 percent.

In nominal terms, the ICT sector accounted for 11.30 percent of GDP in Q3 2024, slightly below the 11.57 percent reported in Q3 2023 and the 14.19 percent recorded in Q2 2024. Year-on-year nominal growth was 14.51 percent, a sharp drop from the 40.27 percent growth observed in Q3 2023.
Despite the mixed performance within the ICT sector, Nigeria’s overall GDP grew by 3.46 percent year-on-year in Q3 2024, driven primarily by the Services sector, which expanded by 5.19 percent and accounted for 53.58 percent of aggregate GDP.

The Agriculture and Industry sectors also posted modest growth of 1.14 percent and 2.18 percent, respectively, underscoring the diversified nature of Nigeria’s economic recovery.

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With an aggregate GDP of N71.13 trillion in nominal terms, reflecting a 17.26 percent year-on-year increase, Nigeria’s economy continues to be shaped by the interplay of dynamic sectors, with ICT playing a crucial role in driving growth and innovation.