ICT sector contributed 16% to Nigeria’s GDP in Q1 2022- NBS

The Information and Communications Technology (ICT) sector made a 16.20% contribution to Nigeria’s Gross Domestic Product (GDP) in the first quarter of 2022. This is according to a new report by the National Bureau of Statistics (NBS).

The Information and Communication sector represents activities in four sub-sectors: Telecommunications and Information Services; Publishing; Motion Picture, Sound Recording and Music Production; and Broadcasting.

According to the report, the sector’s Q1 2022 contribution is 1.29 points higher than the impact it made in the first quarter (Q1) of 2021 – 14.91%. It’s also 0.99 points higher than the sector’s performance in Q4 2021.

Why does this matter

From a broader point of view, the Information & Communication sector is an integral part of Nigeria’s non-oil sector. The non-oil sector comprises economic activities in Information and Communication, Agriculture, Mining & Quarrying, Manufacturing and Education. among others.

According to the report, the Information & Communication sector in the first quarter of 2022 recorded a growth rate of 12.07% in real terms, year-on-year. From the rate recorded in the corresponding period of 2021, there was an increase of 5.60% points. Quarter-on-Quarter, the sector exhibited a growth of -9.09% in real terms.

With this contribution, the Information & Communication sector outperformed the agricultural and manufacturing sectors.

The agricultural sector in the first quarter of 2022 achieved a 3.16% growth (year-on-year) in real terms. This is an increase of 0.88% points from the corresponding period of 2021. And, a decrease of 0.42% points from the preceding quarter which recorded a growth rate of 3.58%. It grew on a quarter-on-quarter basis at -28.90%.

Real GDP growth in the manufacturing sector in the first quarter of 2022 was 5.89% (year-on-year). This is higher than the same quarter of 2021 and higher than the preceding quarter by 2.49% points and 3.61% points respectively.

The growth rate of the sector on a quarter-on-quarter basis stood at 2.85%. The real contribution to GDP in 2022 first quarter was 10.20%, higher than the 9.93% recorded in the first quarter of 2021 and higher than the 8.46% recorded in the fourth quarter of 2021.

Non-oil sector contributions vs oil sector’s contributions

Data gathered by NBS and her partners reveals that the non-oil sector – in real terms – posted a 93.37% contribution to the nation’s GDP in the first quarter of 2022. This represents a 2.62 points increase to the share recorded in the first quarter of 2021 – 90.75%.

However, the contribution is 1.44 points lower than the 94.81% contribution recorded in the fourth quarter of 2021.

According to the report, the non-oil sector grew by 6.08% in real terms during the reference quarter (Q1 2022). This rate was higher by 5.28% points compared to the rate recorded in the same quarter of 2021 and 1.34% points higher than the fourth quarter of 2021.

It’s important to note that the Information and Communication sector posted a significant contribution – 16.20% – to the impact made by the non-oil sector in the Nigerian Gross Domestic Product Report Q1 2022.

Also, Trade; Financial and Insurance (Financial Institutions); Agriculture (Crop Production); and Manufacturing (Food, Beverage & Tobacco), accounted for the positive GDP growth.

While the non-oil sector posted positive growth, the oil sector didn’t have a great run.

The Oil sector contributed 6.63% to the total real GDP in Q1 2022, down from the figures recorded in the corresponding period of 2021 and up compared to the preceding quarter, where it contributed 9.25% and 5.19% respectively.

Overview of Nigeria’s GDP in Q1 2022

Nigeria’s Gross Domestic Product (GDP) grew by 3.11% (year-on-year) in real terms in the first quarter of 2022, showing a sustained positive growth for the sixth consecutive quarter since the recession witnessed in 2020 when negative growth rates were recorded in quarter two and three of 2020.

The Q1 2022 growth numbers further represent an overall improvement in the economic performance of the country. The observed trend since Q4 2020 is an indication of gradual economic stability.

In the quarter under review, aggregate GDP stood at N45,317,823.33 million in nominal terms. This performance is higher when compared to the first quarter of 2021 which recorded aggregate GDP of N40,014,482.74 million, indicating a year-on-year nominal growth rate of 13.25%.

The Information and Communication sector performed well in the first quarter of 2022. It’s important to keep the momentum when you consider the sector’s contributions to economic growth and development.

While it’s cool to expect better numbers from the sector in subsequent quarters, regulators and players will have to put it effort to sustain the growth, especially in an election year.