Regarded as one of the fastest growing sectors in Nigeria, the contribution of the Information and Communication Technology (ICT) sector to the gross domestic product (GDP), grew by 9.76 percent in 2022, from 6.55 percent reported in 2021.
According to the executive secretary of the association of telecommunication companies of Nigeria (ATCON) Ajibola Olude, he stated that the ICT sector is reported to have grown significantly due to several factors. One of the reasons he mentioned is the steady awareness to move all services rendered by both the government and private sector online, which he believed led to an increased usage of more data by the organization.
In his words,
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“With the central bank of Nigeria on the quest to promote a cashless policy economy, more individuals and organizations are gradually embracing the use of USSD, mobile, and internet banking, and many others, this also tends to improve the ICT sector.
“More money coming into the country via foreign direct investment in capital importation in the ICT sector, this also accounts for the growth in the Nigerian economy”.
According to Data reported by the industry, it indicates that the telecommunication and information sector reported the highest growth rate compared to other ICT sectors in the economy. On a year-on-year basis, the sector growth rate increased by 10.72 percent in 2022, higher than the 7.28 reported in 2021.
The ICT sector has provided 3 unprecedented contributions to the Gross Domestic Product (GDP) of the country in the last three years, which are 14.07 percent in Q1 2020, 17.92 percent in Q2 2021, and 18.44 percent in Q2 2022. It is interesting to note that each time, that has been the highest-ever contribution of the ICT sector to Nigeria’s GDP.
The growth recorded in the industry in the fourth quarter (Q4) of 2020, made it the fastest-growing sector of the Nigerian economy and the only sector to have grown by double digits. It was reported to have played a critical role in enabling Nigeria to exit the recession.
Operators in the ICT Industry disclose that the sector growth can be attributed to the increasing number of internet service subscribers, mobile service subscribers, and the growth in broadband penetration.
In 2020, while speaking at the Digital Nigeria Day (DND) with the theme “Digital Transformation: A Path To Sustainable Digital Economy”, Nigeria’s Minister of Communication and Digital Economy, Prof. Isa Ali Pantami emphasized that the implementation of a digital economy policy accelerates digitalization and this, in turn, enhances the digital economy.
The minister highlighted that digital platforms have engendered the digitization of business processes and led to significant savings. He, therefore, tasked stakeholders to persist in supporting the ministry to further accelerate the development of the digital economy sector.
Looking ahead into 2023, increased adoption of cloud computing is one of the potential trends that may shape the development of ICT. As businesses in Nigeria find means to reduce costs and improve efficiency, many citizens will turn to cloud computing solutions to store and process data.