ICT 18.44% contribution to GDP: Pantami links achievement to good policies

The Minister of Communications and Digital Economy, Professor Isa Ali Pantami has expressed excitement over the remarkable contribution of the Information and Communications Technology (ICT) sector to Nigeria’s Gross Domestic Product (GDP) in the second quarter of 2022 (Q2 2022).

The sector has contributed 18.44 per cent to the GDP on the second quarter of 2022, surpassing all other non-oil sectors.

As contained in the new report released by the National Bureau of Statistics, In nominal terms, in the second quarter of 2022, the sector growth was recorded at 14.11 per cent (yearon-year), 14.18 per cent points increase from the rate of -0.07 per cent recorded in the same quarter of 2021, and 6.43 per cent points lower than the rate recorded in the preceding quarter.

The Quarter-on- Quarter growth rate recorded in the second quarter of 2022 was 14.13 per cent.  The Information and Communications sector contributed 12.12 per cent to the total Nominal GDP in the 2022 second quarter, lower than the rate of 12.22 per cent recorded in the same quarter of 2021 and higher than the 10.55 per cent it contributed in the preceding quarter.

The sector in the second quarter of 2022 recorded a growth rate of 6.55 per cent in real terms, year-onyear. From the rate recorded in the corresponding period of 2021, there was an increase of 0.99 per cent points. Quarter-on-Quarter, the sector exhibited a growth of 13.41 per cent in real terms.

Of total real GDP, the sector contributed 18.44 per cent in 2022 second quarter, higher than in the same quarter of the previous year in which it represented 17.92 per cent and higher than the preceding quarter in which it represented 16.20 per cent.

Nigeria Gross Domestic Product (GDP) grew by 3.54 per cent (year-on-year) in real terms in the second quarter of 2022. This growth rate declined from 5.01 per cent in the second quarter of 2021 when rapid growth was recorded following the toll the COVID-19 pandemic exacted on the economy in Q2 2020. In addition, the recent rising prices have adversely impacted on the second quarter 2022 performance. The Q2 2022 growth rate decreased by 1.47 per cent points from 5.01 per cent growth rate recorded in Q2 2021 and increased by 0.44 per cent points relative to 3.11 per cent in Q1 2022.

However, quarter-on-quarter, real GDP grew at -0.37 per cent in Q2 2022, reflecting lower economic activity in Q2 2022 than in the preceding quarter.

The non-oil sector grew by 4.77 per cent in real terms during the reference quarter (Q2 2022). This rate was lower by 1.97 per cent points compared to the rate recorded same quarter of 2021 and 1.31 per cent points lower than the first quarter of 2022.

“This sector was driven in the second quarter of 2022 mainly by Information and Communication (Telecommunication); Trade; Financial and Insurance (Financial Institutions); Transportation (Road Transport); Agriculture (Crop Production) and Manufacturing (Food, Beverage & Tobacco), accounting for positive GDP growth. In real terms, the non-oil sector contributed 93.67 per cent to the nation’s GDP in the second quarter of 2022, higher than the share recorded in the second quarter of 2021 which was 92.58 per cent and higher than the first quarter of 2022 recorded as 93.37 per cent,” the report stated.

In a statement on Saturday released by the Technical Assistant (Research and Development) to the Minister of Communications and Digital Economy, Dr Femi Adeluyi, the Minister noted that the growing contribution of the ICT sector to the GDP is as a result of the commitment of the administration of President Muhammadu Buhari, GCFR to the development of the digital economy.

“The diligent implementation of the National Digital Economy Policy and Strategy (NDEPS) for a Digital Nigeria, stakeholder engagement and creation of an enabling environment have all played an important role in this achievement.