The beginning of the 21st century witnessed a rising tide in globalization, courtesy of the four significant mechanisms that made it possible, namely, capital, technology, human capacity development and global peace promotion.
Exclusively, technology innovation birthed the penetrating forces behind Information and Communication Technology (ICT), which ensured a seamless promoted globalisation, and its economic enthronement. Although, this piece is not about globalisation, we reemphasise and acknowledge it strong effects delivered through ICT matrix. Again, globalisation has its own criticism, especially in regard to third world countries’ economic successes.
Convincingly, ICT impacts global economy, granting the current century as information technology revolution phenomenon in reference and contrast to previous revolutionary ages – stone age, slave epoch, agriculture and steam engine industrialisation.
Instructively, ICT revolution brought about cutting edge articles raging from satellite, internet, mobile phone, Fin-Tech, spectrum broadband, wireless penetration, virtual work station, and emerging artificial intelligence (AI). Without doubt these are links through which ICT shape and reshape global economic activities.
By disrupting the status quo and reestablishing new ones, arguably, human societies have come to reckon with ICT, as the world we live today, is on the beacon of ICT matrix.
Critically, a modest history of ICT penetration in Nigeria dates back to the pre-2000 millennium with government’s seriousness in ensuring every Nigerian household acquired the table phones in the 1970s.
Beyond that, trends in government policy fiat came through in early 2000s with mobile telephone licenses and other sectoral approach framework. Interestingly, ICT in Nigeria gained momentum as economic progression determinant since then.
That is why today breaking news never ceased to be heard about the manner ICT impact the the nation’s Gross Domestic Product (GDP). In fact, Nigeria’s GDP is approximately $500 billion with the oil and gas sector having the larger share, and dominating every other sector.
Government’s attention has been drawn over the years to target a shift from the petrol dollar rentier economy with less real growth and appreciable development. However, deliberate refocusing on the non-oil sector will rejuvenate the entire economy. Thus, ICT is steering the ship towards government’s drive towards economic diversification.
Consequently, a recently outstanding performance of the ICT in the Nigerian economy was published by the National Bureau of Statistics (NBS).
According to the NBS, “ICT services have contributed N2.508 trillion to Nigeria’s GDP in the first quarter of 2023”. We can relate this to how activities in the ICT sector contributed 16.22% to Nigeria’s real Gross Domestic Product (GDP) in Q4 2022.
Simply, on a year-on-year basis, the sector’s growth rate increased by 10.72 percent in 2022, higher than the 7.28 reported in 2021. Contributions of the Nigerian ICT sector to the Gross Domestic Product (GDP) grew by 9.76 percent in 2022 from 6.55 percent against statistics reported in 2021.
Again, the 2022 full-year GDP report released by the NBS shows the ICT sector contributed 16.51 percent to the overall GDP, while that of 2021 stood at 15.51%. This is a rated performance compared to previous statistics on the sector.
Understandably, NBS arriving at this statistics involved the calculations of 46 distinct sectors of the economy, which constitute oil and gas, ICT, manufacturing, banking, insurance, real estate, construction, transportation and other service baskets.
Meanwhile, the ICT sector in Nigeria entails the following; telecommunications and information services, publishing, motion picture, sound recording, music production, and broadcasting. However, a lots factors are said to be responsible for this impressive outing of the ICT contributions to the Nigerian GDP.
Data from Nigerian Communication Commission (NCC) revealed the number of phone subscribers in Nigeria as at April 2023 stood at 223.6 million. This is followed by the number of internet subscribers for the same period 157 million, while broadband subscriptions stood at 92 million.
This was achieved through deliberate efforts by the government and stakeholders in private sector transition to online engagement. Worth mentioning is Central Bank of Nigeria (CBN) cashless policy economy, and emerging Fin-Tech services by individuals and organisations alongside the use of USSD, mobile and internet banking.
There is also the $820.8 million revenue generated by the federal government from 5G spectrum licences from three operators, namely, MTN, MAFAB and Airtel, within the period under review.
More so, the FDI is bringing in capital importation in the ICT sector, adding to the growth in the Nigerian economy with the likes of Elon Musk-owned SpaceX having its issuance of licence for satellite-based wireless broadband service.
ICT in Nigeria indeed shows a positive outlook, which is credited to the innovative and predictable telecoms regulatory environment and others. However, the sector still has its own challenges, particularly on interior areas penetration and multiple taxation complaints.
Nonetheless, for the federal government to increase the contributions of the ICT sector to GDP via a five-year plan, all hands must be on deck where the government priorities what is necessary to achieve the set goal by the end of 2025.
In the long run, the Nigerian ICT matrix is the reason for the GDP growth, and still counting.
Olamilekan, a political economist, writes via adefolarin77@gmail.com, 08107407870;08073814436