Nigeria’s Information and Communications Technology (ICT) sector has significantly boosted the economy, contributing 17.68% to the country’s Gross Domestic Product (GDP) in the fourth quarter (Q4) of 2024, with the telecommunications sub-sector leading at 14.4%, according to a report by the National Bureau of Statistics (NBS).
This marks an increase from 16.66% in Q4 2023 and 16.35% in Q3 2024, highlighting ICT’s growing impact on economic recovery and expansion.
Sector Growth and Challenges
Despite the sector’s overall contribution to GDP, the NBS report noted a slowdown in nominal and real growth. In nominal terms, the ICT sector grew 11.57% year-on-year in Q4 2024, a sharp drop from 39.57% in Q4 2023, reflecting a 28 percentage point decline. However, quarter-on-quarter, the sector showed a nominal growth rate of 14.55%, contributing 11.75% to nominal GDP in Q4 2024.
In real terms, the sector’s growth stood at 5.9% year-on-year, slightly lower than the 6.32% recorded in Q4 2023. However, quarter-on-quarter, the industry performed better with a 16.81% growth rate. The overall real GDP growth for the ICT sector in 2024 was 5.42%, down from 7.91% in 2023.
Telecoms: The Driving Force
Breaking down ICT’s contributions, telecommunications remained the biggest driver with a 14.4% share of the GDP. The telecoms industry emerged as the third-largest contributor to real GDP in Q4 2024, following Crop Production (23.42%) and Trade (15.1%).
Speaking on the sector’s resilience, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), stated that Nigeria’s 3.84% GDP growth in Q4 2024 reflects the determination of private investors despite economic challenges.
“Inflationary pressures and energy costs have marginally declined, and the naira exchange rate has been relatively stable. The outlook for investor confidence has been improving,” Yusuf told The Guardian.
Surge in Mobile & Internet Subscriptions
Recent statistics from the Nigerian Communications Commission (NCC) show an upward trend in telecoms adoption. As of January 2025, mobile network operators activated and reactivated 4.4 million new phone lines, pushing total mobile subscriptions from 164.9 million in December 2024 to 169.3 million.
Technology Penetration & Internet Usage Growth
- 5G penetration increased from 2.46% to 2.54%
- 4G penetration rose from 47.2% to 47.23%
- 2G penetration improved slightly from 41.59% to 41.63%
- 3G penetration, however, declined from 8.75% to 8.6%
Meanwhile, internet users grew from 138.7 million to 141.6 million, with data consumption surging to over 1 million terabytes during the period.
A Promising Future for ICT
While the ICT sector faced growth slowdowns in 2024, its long-term trajectory remains positive, particularly with telecoms and digital innovations driving expansion. With increased mobile adoption, internet penetration, and investor confidence, the sector is poised for further economic contributions in 2025 and beyond.
