ICT sector contributes 17% to Nigeria’s GDP in Q4 2024

• The Information and Communication Technology sector contributed 17 per cent to Nigeria’s Gross Domestic Product in the fourth quarter of 2024
• The sector’s nominal growth declined year-on-year 
• The telecommunications sub-sector continued to lead the ICT sector

Nigeria’s Information and Communication Technology (ICT) sector contributed 17 per cent to the country’s real Gross Domestic Product (GDP) in the fourth quarter (Q4) of 2024.

According to the latest GDP report by the National Bureau of Statistics (NBS), the sector’s contribution increased in Q4 2024 from 16.66 per cent recorded in the same quarter of 2023 and 16.35 per cent in the third quarter (Q3) of 2024.

The report further showed that the ICT sector’s annual contribution to real GDP stood at 17.68 per cent in 2024, a slight increase from the 17.34 per cent recorded in 2023.

Despite the growth, the sector experienced a slowdown in nominal and real terms compared to 2023.

Nominal sector growth declines year-on-year 

The ICT sector grew by 11.57 per cent year-on-year in Q4 2024 in nominal terms, a 28 per cent drop from the 39.57 per cent growth recorded in Q4 2023.

On a quarter-on-quarter basis, the ICT sector’s nominal growth rate was 14.55 per cent, contributing 11.75 per cent to nominal GDP in Q4 2024.

The contribution to nominal GDP is a drop from the 12.52 per cent recorded in Q4 2023 but an increase from the 11.30 per cent recorded in Q3 2024.

The sector contributed 12.48 per cent to nominal GDP for the 2024 full year, down from 12.95 per cent in 2023.

ICT sector recorded slow real GDP growth in Q4 2024

The ICT sector grew by 5.90 per cent year-on-year in Q4 2024 in real terms, a 0.42 percentage points decline compared to the 6.32 per cent growth recorded in Q4 2023.

On a quarter-on-quarter basis, the sector recorded a 16.81 per cent growth rate.

The ICT sector’s overall real GDP growth for 2024 stood at 5.42 per cent, a decline from the 7.91 per cent recorded in 2023.

Telecom sub-sector continues to lead ICT sector

The NBS stated that the ICT sector comprises the four activities of telecommunications and information services; publishing; motion picture, sound recording, and music production; and broadcasting.

A further analysis of the NBS’s data showed that the telecom sub-sector remains the lead driver of ICT growth in Nigeria with 14.40 per cent contribution to the GDP in Q4 2024.

The data showed that the telecom industry was the third-largest contributor to the real GDP in Q4 2024, trailing Crop production and Trade industries, which contributed 23.42 per cent and 15.1 per cent, respectively.

The telecom industry, dominated by mobile network operators including MTN, Globacom, Airtel, 9mobile, and Internet Service Providers (ISPs), drives a lot of activities in every other sector of the economy.

CBN report shows ICT firms, telecoms companies owe banks N1.69 trillion as of September 2024

Meanwhile, TheRadar earlier reported that the quarterly statistical bulletin of the Central Bank of Nigeria (CBN) showed that Information Communication Technology (ICT) firms, including telecommunications companies in Nigeria, owed Deposit Money Banks N1.69 trillion as of September 2024.

According to the data, the debt of telecom companies and other ICT firms to banks decreased year-on-year by 3.9 per cent (N68.04 billion) compared to the N1.77 trillion owed in September 2023.