Information & Communication Technology 

The information and communications technology sector has almost doubled its contribution to Nigeria's GDP in the last three years and is expected to be a main driver of economic growth, according to the minister of communications. The industry currently contributes 9.58 percent to GDP (Q3 2014) and is further enabling other parts of the economy.  Three years ago, ICT contributed only 5.46 percent of Nigeria's GDP. This year the sector is on track to generate about $50 billion of the country's total GDP.

 

The Nigerian telecom sector is one of the fastest growing telecom markets in the world and continues to attract significant foreign direct investment, with an estimated additional $6 billion invested between 2011 and 2013. This development and growth of the sector could be attributed to the judicious application of the principles laid down by her ministry in key policy documents such as the National ICT Policy, National Broadband Strategy and Local Content Guidelines.

 

Slowly but surely, Nigeria is becoming a digital economy. Nigeria is currently ranked 141 in the United Nations e-Government Development Ranking, up 21 places from its spot in 2012. Through its Local Content Guidelines, Nigeria is looking to foster more participation of Nigerian companies in the ICT industry and stimulate job creation. A stable economic environment and a spirit of innovation has enabled the success of leading e-retail outfits such as Jumia and Konga, even though the Internet is in a state of infancy in most parts of Nigeria.

 

Investors in the Nigerian ICT sector will get an opportunity to participate in the fastest growing economy in the world. Government efforts to spur the tech sector include the licensing of infrastructure companies, expected to provide efficient wholesale bandwidth services on a non-discriminatory, open access and price-regulated basis, and increased investments in ICT infrastructure through spectrum auctions including those held in the first quarter this year and those expected in the first quarter of 2015.

 

Other government initiatives include Universal Service Provision Fund subsidies for areas unserved or under-served by telecom services, and the development of legislation such as the Critical Infrastructure Bill, aimed to ensure the protection of infrastructure from damage, and the Cybercrime Bill, presently under parliamentary review, meant to instill confidence in people as they go online.