In the first quarter of 2023, information and communications technology (ICT) activities contributed 17.47% of Nigeria’s real GDP. This was revealed by the National Bureau of Statistics (NBS) in the Q1 GDP statistics.
When compared to the same period last year, this represents an increase in contribution. Quarter on quarter, the sector increased its real GDP contribution to 16.2%, compared to 16.2% in Q4, 2022.
The NBS defines the ICT sector as 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 10.32% 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 14.13% to the GDP in real terms.
The closest sub-sector to telecoms in the ICT sector in terms of contribution was broadcasting, which added 1.98%.
Other key highlights for the ICT sector
The ICT sector contributed 13.23% to the total nominal GDP in the first quarter of 2023, higher than the rate of 10.55% recorded in the same quarter of 2022 and higher than the 10.42% it contributed in the preceding quarter.
- In nominal terms, the sector recorded 41.84% growth in the quarter under review, a 21.30% point increase from the rate of 20.54% recorded in the same quarter of 2022 and 20.43% points higher than the rate recorded in the preceding quarter.
- The ICT sector contributed 13.23% to the total nominal GDP in the first quarter of 2023, higher than the rate of 10.55% recorded in the same quarter of 2022 and higher than the 10.42% it contributed in the preceding quarter.
The general performance of the economy
According to NBS, Nigeria’s GDP increased by 2.31% year on year in real terms in the first quarter of 2023, indicating 1.21% points lower than the previous quarter’s 3.52% and 0.8% lower than the corresponding period of 2022.
The Statistics Bureau attributed the slowdown in GDP growth rate to naira scarcity, which occurred in the first quarter of the year because the central bank refused to abandon its naira swap policy.
The performance of the GDP in the first quarter of 2023 was primarily driven by the services sector, which grew at a 4.35% annual rate and contributed 57.29% of the total GDP.
