Nigerian Economy: ICT Sector Contributes ₦5.5 Trillion To GDP In H1 2021

According to the quarterly Gross Domestic Products GDP reports of the National Bureau of Statistics, Nigeria’s Information, Communication, and Technology (ICT) sector contributed ₦5.5 trillion to the nation’s economy in a six-month timeframe — that is, between January to July of 2021.

Nigeria’s ICT sector comprises four main components of telecommunications and information services. These components include motion pictures, sound recording, broadcasting, and music production.

Per NBS — in the first quarter of the year — Nigeria’s total GDP was ₦16.83 trillion. The Information, Communications, and Technology sector saw a growth percentage of 6.47 percent in real terms and made a 17.92 percent contribution to the nation’s GDP.

Between January to March, the ICT sector contributed ₦2.51 trillion. In the second quarter of the year, it contributed ₦2.99 trillion — a significant increase in cash made.

Additionally — in the first and second quarters of 2021 — the ICT sector made an ₦8.75 trillion contribution to the nation’s economy, in terms of nominal GDP. In the first quarter of the year, the ICT had a 7.86 percent increase in revenue and made a 9.91 percent contribution to the nation’s total nominal GDP which stood at ₦40.01 trillion.

In the second quarter, the ICT sector contributed 12.22 percent to Nigeria’s total nominal Gross Domestic Product, which was at ₦39.12 trillion.

The nominal GDP of a nation is used to monitor the overall value of goods and services the nation’s economy produces in a given timeframe. This is done by calculating the total quantity of the goods/services, and their prices. GDP — on the other hand — monitors the overall value of the goods and services but calculates their quantities using fixed prices.

Per Investopedia, the change in production levels within a particular timeframe can be more accurately calculated using the real GDP. However, nominal GDP is a better means of calculating consumer purchasing power.

In an interview with Punch Newspaper — Olusola Teniola — The National Coordinator, Alliance for Affordable Internet, stated, “In Q1 and Q2 of 2021, we have noticed a gradual tapering off and a decline in between what was recorded in 2020 and the reasons are obvious. We had at the tail end of 2020 a SIM card regulatory measure that was enforced, which now monetarily is impacting both the first quarter and second quarter figures of ICT contributions to the GDP.”

“In reality, it has shown a decreasing tendency from the conclusion of the fourth quarter in 2020, the first quarter of 2021, and now the second quarter of 2021. There is a decrease from the first quarter of 2021 to the second quarter of 2021. This will also be evident in the third quarter of the year since the disconnection and failure of individuals to register in the fourth quarter of 2020 figures are now showing up, as observed in the first and second quarters statistics,” he disclosed.

“And we anticipate a drop in industry sales in the third quarter of this year. This is expected due to the industry’s reaction to the SIM card regulatory guideline” he further added.