Technology now contributes more than oil to Nigeria’s GDP

According to the recent Gross Domestic Product (GDP) report by the National Bureau of Statistics, the information and communications technology (ICT) sector contributed 18.44% to Nigeria’s GDP in the second quarter of 2022. The sector saw a 6.55% growth rate from Q1 2022.

The contribution of the oil sector, which used to dominate the country’s GDP bottom line, fell to 6.33% in Q2 2022, a position lower than its 7.42% in Q2 2021 and 6.63% in Q1 2022.

With trade coming in second to ICT and contributing 16.81% to the economy, higher than the 16.6% it recorded in 2021 when the world was just recovering from the pandemic, and the 16.13% it recorded in Q1 2022, the non-oil sector dominated the economy. 

Per the report, the non-oil sector contributed 93.67% to the nation’s GDP in the period in review. The figure is said to be higher than 92.58% in Q2 2021 and 93.37% in Q1 2022. The non-oil sector’s contribution grew by 4.77% from the previous rate. 

The non-oil sector was driven mainly by telcos, trade, financial institutions, transportation, agriculture, and manufacturing (food, beverage and tobacco). The report also showed that economic activities picked up around telecoms and trade services after the COVID-19 pandemic and government regulations on SIM-NIN integration.

After praising the leadership of the ICT sector, minister of communications and digital economy, Issa Pantami, said in a note that ICT leading the pack is a development in line with the federal government’s commitment to developing the digital economy through the implementation of the National Digital Economy Policy and Strategy (NDEPS).

Altogether, Nigeria saw a GDP growth of 3.54% in Q2 2022, from the 3.11% growth it recorded in Q1. If you found this article useful, visit techcabal.com for more.