Nigeria’s Information and Communications Technology (ICT) sector contributed a significant 17.47% to Nigeria’s GDP (Real Gross Domestic Product) in the first quarter of 2023. This is according to the latest statistics released by the National Bureau of Statistics (NBS).
According to the NBS report, this amounts to about N3.1 trillion of the total N17.75 trillion of the country’s real GDP in the quarter. This is a notable increase in the ICT sector’s GDP contribution, surpassing the figures for the first quarter of 2022 which stood at N2.86 trillion.
ICT Sector’s growing impact on Nigeria’s GDP
The NBS revealed that the ICT sector accounted for 17.47% of Nigeria’s GDP (real)in the first quarter of 2023, demonstrating a substantial rise from the 16.2% recorded in the corresponding period of the previous year. This growth signifies the increasing importance of ICT-related activities to the country’s economic development.
Among the various activities encompassed by the ICT sector, telecommunications emerged as the primary driver of growth. The telecommunications sub-sector contributed 14.13% to the GDP in real terms, leading the way with a growth rate of 10.32% year on year during the quarter under review. The broadcasting sub-sector followed, contributing 1.98% to the overall GDP in real terms.
Not only did the ICT sector make strides in Nigeria’s GDP contribution, but it also demonstrated remarkable growth in nominal terms.
The sector contributed 13.23% to the total nominal GDP in Q1 2023, surpassing the rates recorded in both the same quarter of the previous year (10.55%) and the preceding quarter (10.42%). This nominal growth represents a substantial increase of 41.84% during the quarter, marking a 21.30% point rise compared to the corresponding period of 2022.
Nigeria’s GDP vs Performance of the economy
Nigeria’s GDP experienced a slowdown in growth, reaching 2.31% year-on-year in real terms during the first quarter of 2023, according to the National Bureau of Statistics (NBS). The NBS attributed this decline to the adverse effects of a cash crunch experienced during the quarter. However, despite the challenges, the non-oil sector emerged as the primary driver of the economy, contributing significantly to overall growth.
The NBS’s GDP Report for Q1 2023, published on their website, reveals that the aggregate GDP stood at N51.24 trillion in nominal terms, representing a 13.07% year-on-year nominal growth compared to N45.31 trillion in Q1 2022. In real terms, the GDP reached N17.75 trillion.
The non-oil sector played a vital role, contributing 93.79% to the overall growth, while the oil sector contributed 6.21%. Among the non-oil sectors, the services sector made the largest contribution, accounting for 57.29% of the aggregate GDP. The agriculture sector followed, contributing 21.66%, and the industries sector contributed 21.05%. Noteworthy sub-sectors included manufacturing with 10.13%, trade with 12.28%, and finance and insurance with 5.35%.
The decline in GDP growth was primarily attributed to the adverse effects of a cash crunch experienced during the first quarter. The scarcity of funds negatively impacted economic activities and led to a lower growth rate compared to the preceding quarter.
In terms of oil production, the average daily output increased to 1.51 million barrels per day (mbpd) in Q1 2023. This marked an improvement from the preceding quarter’s 1.34 mbpd, with a marginal increase of 0.17 mbpd. In comparison to Q1 2022, the average daily output of 1.51 mbpd was slightly higher than the 1.49 mbpd recorded.
Despite the challenges faced, the services sector emerged as a key driver of Nigeria’s GDP growth in the first quarter of 2023. It recorded a growth rate of 4.35% and contributed 57.29% to the aggregate GDP. The robust performance of the services sector underscores its pivotal role in the country’s economic landscape.
+ There are no comments
Add yours