The information and communications technology (ICT) sector appeared to be experiencing robust growth, going by the rebased gross domestic product (GDP) report released by the National Bureau of Statistics (NBS).

The exercise, which shifted the base year to 2019, provided a more accurate and expansive view of the Nigerian economy, underscoring the significant and increasing contribution of the ICT sector.

According to the NBS report for Q1 2025, the ICT sector recorded an impressive 31.63 per cent year-on-year growth in nominal terms. The growth marked a substantial increase from previous quarters and further solidifies its position as a vital engine for economic expansion. Adjusted for inflation, the sector posted a 7.4 per cent year-on-year growth.

The rebasement illustrated the ICT sector’s expanding role. Its contribution to nominal GDP surged to 10.29 per cent in Q1 2025, up from 9.25 per cent in Q1 2024.

Similarly, the sector’s contribution to real GDP rose to 10.59 per cent in Q1 2025, compared to 10.17 per cent in Q1 2024. The upward trajectory highlights the sector’s resilience and growing importance.

The recent GDP rebasement, the first since 2014, aimed to capture dynamic and previously underrepresented sectors, including the digital economy, fintech and other informal businesses that have become increasingly relevant.

The 2014 rebasing similarly revealed the significant impact of the telecommunications sub-sector, elevating it as a major contributor to the economy. The latest exercise further validates the consistent growth and innovation within the broader ICT space.

Analysts noted that this statistical adjustment, while not creating wealth overnight, provides a more reliable framework for policy formulation, investment strategies and development interventions.

It offers a clearer picture of where economic activities are concentrated and where further growth can be stimulated, they said. The telecommunications sub-sector, a key component of ICT, has further solidified its position, ranking as the fourth largest contributor to Nigeria’s rebased GDP in nominal terms. This demonstrates the profound impact of widespread digital adoption and the burgeoning digital economy on the nation’s overall output.

The growth seen in the telecoms sub-sector reflected a continued expansion in broadband (4G/5G), growing data usage, and digital adoption across businesses and households. Analysts submitted that while competition is high and Average Revenue Per User (ARPU) remains a concern, the sector is still largely a strong backbone for digital transformation.

The sustained growth in the ICT sector is expected to attract more foreign direct investment, enhance Nigeria’s creditworthiness and provide valuable data for designing targeted policies that promote job creation, improve productivity and ensure long-term economic stability.

As Nigeria continues its digital transformation journey, the rebased GDP figures serve as a clear testament to the ICT sector’s pivotal role in shaping the nation’s economic future.