Nigeria GDP: ICT record 15% growth, drives the non-oil sector

ICT in Nigeria drove the Non-oil sector which contributed 91.84% to the real GDP.

The report by the National Bureau of Statistics, NBS, shows a positive turn on Nigeria’s economy. The GDP grew by 0.11% (year-on-year) in real terms in Q4 2020 indicating that Nigeria has exited recession.

For 2020, the non-oil sector grew –1.25% and in real terms 1.69% rate in Q4 2020. This is slower than 2.06% for 2019 and 2.26% recorded in the corresponding quarter of the same year.

However, it is also the first positive quarterly growth in the last three quarters as it outperforms the preceding quarter of 2020 where a –2.51% growth rate was recorded.

In real terms, the non-oil sector contributed 94.13% to the nation’s GDP in Q4 2020 while the oil sector contributed 5.87% to total real GDP.

It is also a higher contribution that the total recorded in Q4 2019 (92.68%) and Q3 2020 (91.27%).

For 2020, the Non-Oil sector contributed 91.84% to real GDP, higher than 91.22% recorded in 2019. However, the non-oil sector contracted by 1.25% compared to 2.06% in 2019.

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Digital economy contributes to the GDP in Nigeria

The information and Communication, ICT, sector drove the growth in the non-oil sector in Nigeria with a 14.70% growth in Q4 2020 from 10.16% in Q4 2019. Total contribution at the end of 2020 stood at 15.05%.

The growth recorded in the ICT sector in Q4 2020 is quadruple the rate contributed by the Agriculture sector which comes right after it with a growth rate of 3.42%.

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Non-oil sector

Non-oil sectors that accounting for real GDP rate

• Information and Communication (Telecommunications & Broadcasting) sector grew by 12.9% in 2020 from 11.08% in 2019.
• Agriculture (Crop Production) sector grew by 2.17% in 2020.
• Manufacturing (Food, Beverage & Tobacco) sector contracted by -2.75% in 2020.
• Mining and Quarrying sector contracted by -8.54% in 2020.
• Construction sector contracted by -7.68% in 2020.
• Accommodation and Food Services sector contracted by -17.75% in 2020.
• Transportation and Storage sector contracted by -22.26% in 2020.
• Arts, Entertainment and Recreation sector contracted by -3% in 2020.
• Real Estate sector contracted by -9.22% in 2020.
• Financial Institutions under Financial and Insurance sector grew by 13.34% in 2020.
• Professional, Scientific and Technical Services sector contracted by -7.92% in 2020.
• Education sector contracted by -13.57% in 2020.
• Public Administration sector grew by 0.1% in 2020.
• Human Health and Social Services sector grew by 2.23% in 2020.
• Other Services sector contracted by -5.78% in 2020.
• Water Supply, Sewerage, Waste Management And Remediation sector grew by 3.81% in 2020.
• Industries sector contracted by -5.85% in 2020.

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