The Information and Communications Technology (ICT) sector played a crucial role in Nigeria’s economic growth during the third quarter of 2023, contributing 15.97% to the country’s real Gross Domestic Product (GDP), according to data released by the National Bureau of Statistics (NBS). This marks an increase from the 15.35% recorded in the same period the previous year.
ICT Sub-Sectors Contribute to Growth
The growth of the ICT sector was driven by its four key activities: Telecommunications and Information Services, Publishing, Motion Picture, Sound Recording, Music Production, and Broadcasting. The telecommunications sub-sector, in particular, contributed 13.50% to the real GDP, highlighting its dominant role within the broader ICT sector. Broadcasting also significantly contributed, accounting for 1.39% of the real GDP.
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Year-on-Year and Quarter-on-Quarter Comparisons
In Q3 2023, the ICT sector experienced a yearly 6.69% growth rate in real terms. However, compared to Q2 2023, the sector’s contribution to the real GDP declined, falling from 19.54% to 15.97%. This decrease can be attributed to a slowdown in the telecommunications sub-sector.
Nominal GDP and Growth Rate
The ICT sector contributed 11.57% to the total Nominal GDP in Q3 2023, surpassing the 9.58% recorded in the same quarter of 2022 but falling short of the 14.83% in the preceding quarter. From the corresponding period in 2022, there was a decrease of 3.84% points in the growth rate. On a quarter-on-quarter basis, the sector exhibited a -10.30% growth rate in real terms.
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Overall Economic Performance
Nigeria’s economy grew by 2.54% in Q3 2023, a slight increase from the 2.51% recorded in Q2 2023. Compared with the corresponding quarter of 2022, the growth rate in Q3 2023 exceeded the 2.25% recorded in the third quarter of 2022. The services sector was a major driver of the GDP, growing by 3.99% and contributing 52.70%. The agricultural sector witnessed a growth of 1.30%, and the industry sector displayed a growth of 0.46%, showing improvement from the -8.00% recorded in the same quarter of the previous year.
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Conclusion
The report underscores the pivotal role of the ICT sector in Nigeria’s economy. The sector’s consistent growth and significant contributions highlight its potential to drive further economic development and diversification across various industries.
