The Information, Communication and Technology sector contributed N5.5tn to real Gross Domestic Product in the first half of 2021.
This is according to the National Bureau of Statistics’ GDP reports for the first and second quarters of the year.
The ICT sector is composed of the four activities of telecommunications and information services; publishing; motion picture, sound recording and music production; and broadcasting.
In Q1 2021, the nation’s real GDP was N16.83tn, according to the NBS. The ICT sector recorded a growth rate of 6.47 per cent in real terms, year on year, and contributed 14.91 per cent to real GDP.
In Q2 2021, the nation’s real GDP was N16.69tn, while the ICT sector recorded a growth rate of 5.55 per cent in real terms and contributed 17.92 per cent to the real GDP.
The sector contributed N2.99tn to the real GDP in Q2 2021, up from N2.51tn in Q1.
In terms of nominal GDP, the ICT sector contributed a total of N8.75tn in Q1 and Q2 2021.
The sector recorded a 7.86 per cent growth (year-on-year) in Q1 and contributed 9.91 per cent (N3.97tn) to total nominal GDP of N40.01tn.
In Q2, the sector recorded a -0.07 per cent (year-on-year), and contributed 12.22 per cent to the total nominal GDP of N39.12tn.
According to Investopedia, nominal GDP tracks the total value of goods and services produced in an economy in a given time period by calculating all their quantities and all their prices. While real GDP tracks the total value of goods and services, calculating the quantities but using constant prices.
It described real GDP as a more accurate measure of the change in production levels from one period to another, while nominal GDP is seen as a better measure of consumer purchasing power.
The National Coordinator, Alliance for Affordable Internet, Olusola Teniola, in an interview with our correspondent, said, “In Q1 and Q2 of 2021, we have noticed a gradual tapering off and a decline in between what was recorded in 2020 and the reasons are obvious. We had at the tail end of 2020 a SIM card policy that was enforced, which now monetarily is impacting both the Q1 and Q2 numbers of ICT contributions to the GDP.
“In fact, what it has demonstrated is a downward trend from the end of the last quarter in 2020, Q1 2021, and now Q2. When you see Q1 of 2021 to Q2, there is a decline. This will also be reflected in Q3 simply because the disconnect and inability of people to register in the Q4 2020 numbers is now coming through, and it is indicated in Q1 and Q2 numbers.
“And we predict that there would be a slash in industry revenue going to Q3 of this year. This is predicted because of the impact of the SIM card policy regulation on the industry.”