ICT sector in Nigeria will be a strong driver of GDP growth, particularly as a result of the fast-growing mobile services penetration, financial inclusiveness initiatives and government service delivery driving ICT spend in key sectors of the economy.
Recently, released predictions for Africa in 2015 by the International Data Corporation (IDC) singled out Nigeria, Kenya and Rwanda as key countries in which ICT growth will be a strong driver of GDP growth in 2015.
According to IDC, “ICT growth will be a strong driver of GDP growth in key countries such as Kenya, Nigeria, and Rwanda.”
The contribution of the Nigerian ICT sector to GDP in real terms was 9.58 percent in Q3 2014, compared with 9.39 percent in Q3 2013, and 11.80 percent in the Q2 of 2014, according to third quarter reports by the National Bureau of Statistics (NBS). Contribution to nominal GDP stood at 9.51 percent in Q3 2014.
Also included in the outlook are assertions that next year will herald the next level of African IT procurement – battles will arise for dominance in the SME space and governments with clear and relevant national ICT policies will dominate economies.
The internet and technology as a whole, is seeing healthy growth across Africa, particularly Nigeria. Technologies like mobile, cloud, big data and social media are driving new business models and added value across the continent.
Nigeria’s ICT sector is experiencing a 10.3 percent compound annual growth rates (CAGR) ytd, way ahead of South Africa on 6.5 percent and Kenya on 9.5 percent.
Overall ICT market, with telecoms included, is at 4.9 percent, ahead of South Africa and Kenya at 3.8 percent and 4.3 percent, respectively.
In terms of mobile penetration, however, Nigeria still lags behind at just under 80 percent when compared with South Africa at 154 percent.
