THE Nigeria Bureau of Statistics (NBS) has revealed that the Information and Communication sector has contributed 17.83% to Nigeria’s Gross Domestic Product (GDP) in the seconded quarter of 2020, as concerns rises that Nigeria’s economy may be driving towards recession.
Latest report by NBS indicates that Nigeria’s GDP decreased by six to 10 per cent, year-on-year, in real term in the Q2 2020.
NBS noted that decline in GDP was largely attributable to significantly lower levels of both domestic and international economic activity during the quarter, which resulted from nationwide shutdown efforts aimed at containing the COVID-19 pandemic.
The report revealed that the ICT sector grew by 15.09% in Q2 2020 from 9.99% in Q1 2020 and 9.01% in Q2 2019.
The Telecommunications & Information Services under Information and Communication sector grew by 18.10% in Q2 2020 from 9.71% in Q1 2020 and 11.34% in Q2 2019.
In the second quarter of 2020, the sector recorded growth rate of 15.09% in real terms, year on year.
The ICT sector contributed 14.06% to total nominal GDP in Q2 2020, lower than the rate of 13.83% recorded in the same quarter of 2019 but higher than the 10.31% it contributed in the preceding quarter.
Compared to the rate recorded in the corresponding period of 2019, this was an increase of 6.09% points. Quarter on Quarter, the sector exhibited a growth of 20.32% in real terms.
Meanwhile, NBS stated that: “Nigeria’s GDP decreased by –6.10 per cent (year-on-year) in real terms in the second quarter of 2020, ending the three-year trend of low but positive real growth rates recorded since the 2016/17 recession.
“The decline was largely attributable to significantly lower levels of both domestic and international economic activity during the quarter, which resulted from nationwide shutdown efforts aimed at containing the COVID-19 pandemic.
“The domestic efforts ranged from initial restrictions of human and vehicular movement implemented in only a few states to a nationwide curfew, bans on domestic and international travel, closure of schools and markets etc., affecting both local and international trade.
“The efforts, led by both the Federal and State governments, evolved over the course of the quarter and persisted throughout.
“When compared with Q2 2019, which recorded growth of 2.12 per cent, the Q2 2020 growth rate indicates a drop of –8.22 per cent points, and a fall of –7.97 per cent points when compared to the first quarter of 2020 (1.87 per cent).
“Consequently, for the first half of 2020, real GDP declined by –2.18 per cent year on year, compared with 2.11per cent recorded in the first half of 2019. Quarter on quarter, real GDP decreased by –5.04 per cent. Furthermore, only 13 activities recorded positive real growth compared to 30 in the preceding quarter.
“In the quarter under review, aggregate GDP stood at N34,023,197.60 million in nominal terms, or -2.8 per cent lower than the second quarter of 2019 which recorded an aggregate of N35,001,877.95 million.
“Overall, the nominal growth rate was –16.81 per cent points lower than recorded in the second quarter of 2019, and –14.81 per cent points lower than recorded in the first quarter of 2020. For better clarity, the Nigerian economy has been classified broadly into the oil and non-oil sectors.” It stated.
Furthermore, it was noted that out of total real GDP, the IT sector contributed 17.83% in 2020 second quarter, higher than in the same quarter of the previous year in which it represented 14.55% and the preceding quarter, in which it represented 14.07%.
