By Juliet Umeh
Nigeria’s Information and Communications Technology, ICT, sector has reinforced its position as a critical pillar of the economy, contributing 17.68% to the country’s Gross Domestic Product, GDP, in the fourth quarter, Q4, of 2024.
According to the latest report from the National Bureau of Statistics, NBS, the telecommunications sub-sector remains the dominant force, accounting for 14.4% of this contribution.
Meanwhile, this performance marked a steady increase from 16.66 percent in Q4 2023 and 16.35 percent in Q3 2024, underscoring the sector’s resilience despite economic uncertainties.
The full-year ICT contribution to real GDP in 2024 stood at 17.68 percent, slightly up from 17.34 percent in 2023.
While the ICT sector continues to expand, NBS data highlights a slowdown in nominal and real growth. In nominal terms, ICT recorded an 11.57 percent year-on-year growth in Q4 2024, a sharp decline from the 39.57 percent growth seen in the same period in 2023. Quarter-on-quarter, the sector’s nominal growth was 14.55 percent, contributing 11.75 percent to Nigeria’s nominal GDP—lower than 12.52 percent in Q4 2023 but higher than 11.3 percent in Q3 2024.
In real terms, ICT grew by 5.9 percent year-on-year in Q4 2024, slightly below the 6.32 percent growth recorded in Q4 2023.
However, the sector demonstrated stronger quarterly momentum with a 16.81 percent growth rate compared to the previous quarter. For the entire year, ICT’s real GDP growth settled at 5.42%, lower than the 7.91 percent recorded in 2023.
Telecommunications remains the biggest driver of ICT expansion, reinforcing its role as a backbone for Nigeria’s digital economy. The telecom sub-sector contributed 14.4% to GDP in Q4 2024, ranking as the third-largest contributor to the national economy, following Crop Production (23.42%) and Trade (15.1%).
Speaking on the sector’s impact, former Airtel Chief Marketing Officer, Olu Akanmu, noted: “Telecommunication is the biggest beneficiary of the accelerating use of digital technology in financial services, media, entertainment, and renewable energy. The increasing adoption of smartphones, expanding last-mile internet connectivity, and growing demand for digital services among Nigeria’s youthful urban population continue to drive telecom sector growth.”
Mobile and internet expansion
The Nigerian Communications Commission (NCC) reports further expansion in mobile and internet penetration. As of January 2025, mobile network operators (MNOs) activated 4.4 million new telephone lines, bringing the total subscriptions to 169.3 million, up from 164.9 million in December 2024.
5G penetration increased from 2.46% to 2.54%
4G penetration grew from 47.2% to 47.23%
2G networks rose from 41.59% to 41.63%
3G usage declined from 8.75% to 8.6%
Meanwhile, internet users surged to 141.6 million, reflecting the rising demand for digital services. Data consumption also saw a major uptick, exceeding 1,000,930.6 terabytes during the period under review.
The Nigerian telecom industry remains dominated by MTN, Globacom, Airtel, and 9mobile, with further competition expected in the broadband and digital services space. As the government continues to push for 5G expansion, digital transformation, and improved connectivity, the ICT sector is poised for further growth, despite ongoing economic and regulatory challenges.
