The Information and Communication Technology (ICT) sector continues to play a vital role in Nigeria’s economy, contributing 17% to the country’s real Gross Domestic Product (GDP) in the fourth quarter of 2024. This marks an improvement from the 16.66% recorded during the same period in 2023 and 16.35% in Q3 2024, according to new data from the National Bureau of Statistics (NBS).
Despite this solid performance, the sector experienced a slowdown in growth compared to previous years. In nominal terms, ICT grew by 11.57% year-on-year in Q4 2024, a sharp decline from the remarkable 39.57% growth recorded in Q4 2023. For the full year, ICT contributed 12.48% to nominal GDP, slightly down from 12.95% in 2023.
In real terms, the sector grew by 5.90% year-on-year in Q4 2024, a modest drop from the 6.32% growth seen in Q4 2023. However, quarter-on-quarter growth was stronger at 16.81%. Overall, the ICT sector’s real GDP growth for 2024 stood at 5.42%, lower than the impressive 7.91% recorded in 2023.
The telecom sub-sector remains the backbone of ICT growth in Nigeria, contributing a significant 14.40% to GDP in Q4 2024. Telecommunications also emerged as the third-largest contributor to Nigeria’s real GDP during this period, trailing only crop production (23.42%) and trade (15.1%). The industry is dominated by major players such as MTN, Globacom, Airtel, and 9mobile, alongside numerous Internet Service Providers (ISPs).
While the ICT sector continues to drive economic activity across various industries, challenges persist. The Nigerian Communications Commission (NCC) has expressed its commitment to boosting the telecom sector’s contribution to GDP from its current level of around 14% to an ambitious target of 25%. According to Dr. Aminu Maida, Executive Vice Chairman of the NCC, achieving this goal will require addressing existing hurdles through strategic policies and investments.
The ICT sector remains a cornerstone of Nigeria’s economic diversification efforts, with its steady contributions underscoring its potential for further growth despite current challenges.
