ICT contributed 17.9% of Nigeria’s GDP in Q2 2021, higher than the oil sector.
The information and communications technology (ICT) sector has contributed a significant 17.92% of Nigeria’s total Gross Domestic Product (GDP) in the second quarter of 2021. This is a 3.01% increase from the GDP contributions for the preceding quarter, according to a report by the National Bureau of Statistics (NBS).
However, the contribution by the ICT sector is largely attributable to the telecoms industry, which alone contributed 14.43% to the country’s GDP for the second quarter of 2021, based on the industry statistics released by the Nigerian Communications Commission (NCC).
The Information and Communication sector is composed of the four activities of Telecommunications and information services, publishing, motion picture, sound recording & music production, and broadcasting.
The NBS in its report says there is an overall increase in the nation’s GDP of 5.01% due to the massive contributions of the non-oil sector, which grew by 6.74% in real terms during the second quarter of 2021.
Similarly, the ICT sector in the second quarter also recorded a growth rate of 5.55% in real terms, year on year (YoY) but experienced a decrease of -9.54% points compared to the second quarter of 2020.
The ICT sector has become a major boost to the country’s GDP and has maintained steady growth, overtaking the mainstay of the economy, which was crude oil at some point.
The NCC reports that the telecom industry had a 14.42% contribution to GDP, 2.76% higher than in the first quarter of 2021 and 1.97% higher than in the fourth quarter of 2020.
How the oil sector is faring
The report from the Nigeria Bureau of Statistics shows that the performance of the oil sector in Nigeria’s GDP for the second quarter of 2021 was at 7.42%.
This is 1.83% lower than that of the previous quarter. This decline is due to the drop in oil production and the decline in crude oil prices.
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