Nigeria: ICT contributed 15.35% to Nigeria’s real GDP in Q3 2022

Activities in the Nigerian Information and Communications Technology (ICT) sector contributed 15.35% to the country’s real Gross Domestic Product (GDP) in Q3 2022.

This is according to the latest GDP report released by the National Bureau of Statistics (NBS).

This shows an increase in contribution when compared with the 14.20% recorded in the same period last year. However, on a quarterly basis, the sector recorded a decline in real GDP contribution when compared with the 18.44% it added in Q2, 2022.

According to the NBS, the ICT sector is composed of the four activities of 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 10.53% 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 12.85% to the GDP in the real term.

The closest sub-sector to telecoms in the ICT sector in terms of contribution was Broadcasting, which added 1.38%

Other key highlights: The ICT sector contributed 9.58% to the total Nominal GDP in the 2022 third quarter, higher than the rate of 9.22% recorded in the same quarter of 2021 and lower than the 12.12% it contributed in the preceding quarter.

• In nominal terms, in the third quarter of 2022 the sector recorded 20.32% growth year-on-year, a 15% points increase from the rate of 11.17% recorded in the same quarter of 2021, and 6.20% points higher than the rate recorded in the preceding quarter.

 General performance: According to NBS, Nigeria’s GDP grew by 2.25% year-on-year in real terms in the third quarter of 2022. This growth rate declined from 4.03% in the third quarter of 2021. The Bureau attributed the reduction in growth to the base effects of the recession and the challenging economic conditions that have impeded productive activities.

The Q3 2022 growth rate decreased by 1.78% points from the 4.03% growth rate recorded in Q3 2021 and decreased by 1.29% points relative to 3.54% in Q2 2022. However, quarter-on-quarter, real GDP grew at 9.68% in Q3 2022, reflecting a higher economic activity in Q3 2022 than the preceding quarter.