Babalola Adegbuyi
IT has often been said that Nigeria had it all too good in the years gone by when it discovered oil, which was named the black gold. And at a time, it was said that the youthful Head of State, General Yakubu Gowon , once asserted that the country’s problem was not money but how to spend it. Today, the story has changed significantly owing to a number of factors. And in any case, the world is changing rapidly due to technological developments. Just like it should be, Nigeria is not left behind in the scheme of the advancement of technology. What is of paramount importance and a fact is that Nigeria has lapped up onto to the benefits of the Information and Communications Technology (ICT) as many will admit. Initially, most Nigerians thought that ICT was only about telephony, where one would pick his phone and talk to a friend or folks as the case may be. Technological advancements have made that the ordinary feature of technology. When for instance, the former Central Bank Governor, Sanusi Lamido Sanusi mooted the idea of a cashless society, not many understood him. But it turned out that it was one of the most novel policies that stood Sanusi out as events proved to be. And it was big thanks to technological advancement.
Many Nigerians, stakeholders and professionals have canvassed a position that would thrust ICT into the front burner of the economic emancipation of Nigeria and Nigerians, because it has been realised that the sector is leading while others are following. Luckily, the government of President Muhammadu Buhari appreciates the role of ICT in the development of the economy and by extension, the nation. Never has the Ministry of Communications and Digital Economy been more effective than now with the ministry and its ancillaries like the regulator, the Nigerian Communications Commission (NCC), among others churning out policies and programmes that are aimed at making life better for Nigerians through technology. Over the years, apart from making life better for Nigerians and indeed the world all over, it is understood that the ICT is becoming the real deal. While some have predicted the end of oil in few years to come, the good thing is that ICT is just blossoming and burgeoning. A few examples will suffice here. Only recently, the National Bureau of Statistics, (NBC) announced that Nigeria’s Gross Domestic Product (GDP) grew by 5.01 per cent, year-on-year, in real terms in the second quarter of 2021. That makes three consecutive quarters of growth after the negative growth rates recorded in the second and third quarters of 2020. Although the growth recovery since the end of 2020, is attributed to the gradual return of commercial activities as well as local and international travels after the lockdown occasioned by the outbreak of coronavirus pandemic early 2019, it is also noteworthy that ICT has spearheaded the improvements. In the last ten years, ICT has maintained steady growth as a major boost to the country’s GDP, overtaking the mainstay of the economy, oil at some point and had remained the top earner till date. In 2019, telecoms’s contribution to the GDP grew again to 10.6 per cent and as at second quarter of 2020, it has skyrocketed to 14.3 per cent, representing N2.3 trillion. It continued in that trajectory, to hit 17.5 per cent at the end of 2020. It helped in not only taking the economy out of recession but also ensuring the economy does not relapse.
In the latest NBC report, the ICT sector contributed 17.92 per cent to the GDP. The figure is 20.54 per cent higher than its contribution last year and in the preceding quarter, in which it accounted for 14.91 per cent. This is unprecedented and in fact, the highest contribution of ICT to the GDP. Not long ago, the NBC announced that Nigeria’s Gross Domestic Product, GDP grew by 5.01 per cent, year-on-years, in real terms in the second quarter of 2021. That makes three consecutive quarters of growth after the negative growth rates recorded in the second and third quarters of 2020. Although the growth recovery since the end of 2020 is attributed to the gradual return of commercial activities as well as local and international travels after the lockdown occasioned by the outbreak of coronavirus pandemic early 2019, it is also noteworthy that ICT has spearheaded the improvements. According to statistics obtained from NCC’s website, telecoms’ contribution to GDP in 2012 was 7.7 per cent, but the figure doubled to 14.3 percent as at the second quarter of 2020. This represented a N2.3 trillion growth.
In 2012, telecoms’ contribution to GDP was 7.7 percent and in 2013, the contribution dropped slightly to 7.4 per cent, but it picked up again in 2014, contributing 7.6 per cent to GDP. In 2015, it increased contribution to 8.5 per cent and hit 9.13 per cent in 2016. In 2017, it contributed 8.7 per cent and 9.9 per cent in 2018. In the latest NBC report, the ICT sector contributed 17.92 per cent to the GDP. The figure is 20.54 per cent higher than its contribution last year and in the preceding quarter, in which it accounted for 14.91 per cent. This is unprecedented and, in fact, the highest contribution of ICT to the GDP. This was when the oil sector, the supposed mainstay of the economy, only added 7.42 per cent in the same quarter, and more interestingly, a drop from figures recorded in the preceding quarter, where it contributed 9.25 per cent. According to ICT industry players, this shouldn’t come as a surprise, considering that the world over, ICT has provided recovery support to key economic sectors post-pandemic. In dire situations, ICT has always provided the bail-out option and that is why stakeholders believe that the performance of the ICT sector is expected to continue on an upward swing.
The pandemic saw ICT’s fortunes plummeting as several businesses relocated online, and churches and schools, government institutions and other private concerns adjusted to the new normal. The attendant disruptions, restrictions and lockdown also brought home the need for deeper broadband penetration. Although internet penetration gained some ground prior to the pandemic, it however saw a huge surge with the pandemic in full swing. From less than 17 per cent, penetration jumped to about 33 per cent at the end of 2019 and grew by 10 per cent to about 43.3 per cent by end of 2020. In 2021, there are estimated 101.72 million mobile internet users in Nigeria. This figure is projected to grow to 142.73 million by the end of 2026. This figure implies a huge density in a population estimated at 200 million and strongly indicates that the people have adjusted to the new normal.
Traditional brick and mortar in-person financial services are giving way to digital banking and online delivery of financial services, which stakeholders say are strong building blocks to healthy sectoral contribution to GDP. And these are some the reasons why ICT must be respected.
- Adegbuyi, a financial and economic analyst, writes in from Lagos via babasolaadegbuyi@yahoo.com
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