Information and Communications Technology (ICT) has contributed 17.68 per cent to the country’s gross domestic product (GDP). In this contribution, the telecommunications sub-sector leads with a 14.4 per cent addition.

This was revealed by the National Bureau of Statistics (NBS) for the fourth quarter of 2024. This represents an increase from 16.66 per cent recorded in the same quarter of 2023 and 16.35 per cent in the preceding quarter of 2024.

According to the NBS report, the ICT sector’s yearly contribution to real GDP stood at 17.68 per cent in 2024, slightly higher than the 17.34 per cent recorded in 2023.

The NBS report showed that despite this growth, the sector experienced a slowdown in nominal and real terms compared to the previous year. Specifically, NBS observed that in nominal terms, the ICT sector grew by 11.57 per cent year-on-year in Q4 2024, a significant drop from the 39.57 per cent growth recorded in the same quarter of 2023.

The growth showed a 28 per cent point decrease. Quarter-on-quarter, the sector’s nominal growth rate was 14.55 per cent contributing 11.75 per cent to nominal GDP in Q4 2024.

This is lower than the 12.52 per cent contribution in Q4 2023 but higher than the 11.3 per cent recorded in Q3.NBS noted that in 2024 general, the ICT sector contributed 12.48 per cent to nominal GDP in 2024, down from 12.95 per cent in 2023.

Further analysis showed that in real terms, the ICT sector grew by 5.9 per cent year-on-year in Q4, a slight decline of 0.42 percentage points compared to the 6.32 per cent growth recorded in Q4. Quarter-on-quarter, the sector showed stronger performance with a 16.81 per cent growth rate.

However, the sector’s overall real GDP growth for 2024 stood at 5.42 per cent, lower than the 7.91 per cent recorded in 2023. According to NBS, the ICT sector comprises the four activities of telecommunications and information services, publishing, motion picture, sound recording and music production and broadcasting.

A breakdown of the sector’s contribution shows that the telecom sub-sector remains the lead driver of ICT growth in Nigeria with a 14.4 per cent contribution to the GDP in Q4.

According to NBS, the telecoms industry was the third-largest contributor to the real GDP in Q4, coming behind only Crop production and Trade industries, which contributed 23.42 per cent and 15.1 per cent respectively.

The Chief Executive Officer (CEO) of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, said the 3.84 per cent growth in the Q4 was not just a reflection of the gradual recovery of the economy but also demonstrated the resilience of Nigerian entrepreneurs and businesses.

Speaking with The Guardian, he said despite the daunting macroeconomic and structural headwinds businesses contend with, private investors have continued to forge ahead. He said the macroeconomic challenges started to ease in the second half of 2024 with the naira exchange value relatively stable since then.

“Inflationary pressures have decelerated marginally and energy prices have declined marginally as well. Overall, the outlook for investors’ confidence has been positive over the past few months,” he said.

Meanwhile, subscription statistics released Tuesday by the Nigerian Communications Commission (NCC) for January 2025, showed that mobile network operators (MNOs) activated and reactivated about 4.4 million new telephone lines last month, which took the figure from 164.9 million in December 2024 to 169.3 million, a month after.

NCC also revealed deeper penetration of some technologies with 5G moving forward from 2.46 per cent to 2.54 per cent; 4G, from 47.2 per cent to 47.23 per cent; 2G, 41.59 per cent last year to 41.63 per cent early 2025. However, 3G went south, falling from 8.75 per cent to 8.6 per cent.

Internet users also increased, up from 138.7 per cent to 141.6 million with data consumption rising to 1,000,930.6 terabytes in the period under review.
The telecoms industry is still dominated by mobile network operators including MTN, Globacom, Airtel and 9mobile.