A report released by the Office of the Minister of Communications, Innovation & Digital Economy On Nigeria’s Gross Domestic Product (GDP) and Growth Rate; A Focus on the ICT Sector JUNE, 2024 has shown that despite growth, the industry has experienced a seasonal dip in Q1 2024.
The report posted by the Minister on his official X handle @bosuntijani, noted that the available data from the National Bureau of Statistics (NBS, June 2024) on the GDP of the Information and Communication Technology (ICT) sector shows that the nominal value of the sector’s contribution grew from N7.1 trillion in Q3, 2023 to N8.35 trillion in Q4, 2023.
The report, however, stressed that it is important to note that despite this fall, the nominal value in Q1, 2024 is still 10.81% higher than Q3, 2023, and also 14.18% higher compared to the nominal GDP at the same period in Q1, 2023.
“While particular attention is often paid to the real GDP growth rate, a review of the last seven quarters starting from Q3, 2022, indicates that the real GDP growth rate of the Information and Communication Sectors has been on a decline since Q3, 2022, with the sharpest decline in that period happening between Q1, 2023 and Q2, 2023,” the report disclosed.
The report’s key findings are:
- The nominal value of the ICT sector’s contribution to GDP has grown over the past year, despite a seasonal dip in Q1 2024.
- Real GDP growth rate has declined in recent quarters, but there are signs of a slowdown in the decline.
- The government is implementing a strategic agenda to address these trends and accelerate growth in the ICT sector.
Meanwhile, some key factors were identified as responsible for the decline and hindering ICT sector growth. They are a brain drain of tech talent, low ranking in trade complexity, uneven internet connectivity, low digital literacy and declining tech startup funding.
The FMCIDE’s strategic blueprint outlines a multi-pronged approach to address these challenges and stimulate growth. Key areas of focus include:
- Developing a skilled workforce: Initiatives like the 3MTT program aim to cultivate a robust domestic tech talent pool.
- Enhancing research and development: Investments in AI research and emerging technologies foster innovation.
- Creating an enabling environment: The Nigeria Startup Act and other policies aim to attract investment and protect intellectual property.
- Building digital infrastructure: Investments like the Fibre Fund SPV and Digital Public Infrastructure plans are expanding internet access.
- Promoting investment and entrepreneurship: The government is facilitating access to capital and supporting the growth of the startup ecosystem.
- Leveraging trade: Initiatives like the Nigeria Startup House aim to position Nigeria as a leader in Africa’s digital economy.
The FMCIDE believes that by effectively implementing its strategic agenda, the government aims to create an environment that stimulates innovation, attracts investment, and empowers Nigerians to participate in the digital economy.
