August 29, 2023/CSL Research

Based on data from the National Bureau of Statistics (NBS), the Information and Communications Technology (ICT) sector significantly contributed to Nigeria’s real Gross  Domestic Product (GDP) in Q2 2023, accounting for 19.54% of Nigeria’s total GDP, higher than the 18.44% and 17.47% in Q2 2022, and Q4 2022 respectively. The ICT sector comprises of telecommunications and information services, publishing, motion picture, sound recording, music production, and broadcasting.

The ICT sector recorded a real growth rate of 8.60% compared with 6.55% recorded in Q2 2022. On a quarterly basis, the ICT sector declined to 8.60% in Q2 2023 from 10.32% in Q1. The quarterly decline can be attributed to the challenging economic conditions the country currently faces. The y/y growth was largely driven by activities in the telecommunications sub-sector, which contributed 9.70% to the growth of the sector in real terms. Broadcasting emerged as the second-largest sub-sector, contributing 5.70% to the overall performance of the ICT sector.

Nigeria has the largest mobile population in Africa, and this is expected to continue to grow due to its large population of young people. The growth in the ICT sector can be attributed to the increasing number of mobile service subscribers. In June, Nigeria’s active mobile subscriptions settled at 219.7 million from 220.9million, recorded in May 2023. while the country’s teledensity which measures the number of active telephone connections per 100 inhabitants living within an area settled at 115.91% from 115.30% recorded in May. These numbers reflect Nigeria’s growth in the telecommunications sector, owing to the country’s massive population with favourable demographics.

Largely driven by the telecommunication sector, the ICT sector is projected to continue to grow significantly, given the rollout of the 5G network and the continuous expansion of the 4G network. As telecos begin to diversify, the fintech segment is expected to contribute significantly to the growth of the sector. In the long term, growth in the telecommunications sub sector will be driven by new technologies, increasing smartphone usage, rising digital consciousness and increased collaboration with the financial services sector.

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