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ICT contribution to GDP rises to 17% in Q2-NBS report

By Juliet Umeh

Despite the drop in other sectors of the economy, the second quarter report released by the National Bureau of Statistics, NBS has revealed that Information and Communications Technology, ICT, sector’s contribution to Nigeria’s total Gross Domestic Product, GDP has increased by about 17.83.

The report has it that since the beginning of the year, the ICT sector has been one of the major contributors to Nigeria’s GDP as it also contributed N1.28 trillion in the first quarter of 2020.

The sector recorded a positive growth rate of 15.09% from the 9.99% recorded in Q1 2020 and 9.01% in Q2 2019.
Also, for the second consecutive quarter this year, the sector contributed a higher margin to the GDP when compared to crude oil, the country’s prize commodity. This is as the ICT sector contributed 17.83% while the oil sector contributed 8.93%.

As a subsector, the Telecommunications and Information Services had a growth rate of about 18.10% almost doubling its 9.71 growth in the previous quarter.

According to NBS, although ICT contribution for the quarter was significant, the drop in growth across most sectors shows that more needs to be done to help the country’s economy recover from the effects of the pandemic.

The report added: “Going forward, the continuous drop in the contribution of the oil sector to the country’s GDP calls for more efforts to be put into an alternative source of revenue like the thriving ICT sector.”

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