The Impact of Information Technology on Nigeria’s Gross Domestic Product (GDP)
It has been proven without any doubt that technology is now at the forefront of driving Nigeria’s economy, bringing up startups, providing a lifeline for the financial sector, supplying blood to e-commerce, and giving impetus to the creative industry, providing jobs paying far higher than the national minimum wage, thereby producing young technopreneur millionaires.
According to the recent Gross Domestic Product (GDP) report by the National Bureau of Statistics, the information and communications technology (ICT) sector contributed 18.44% to Nigeria’s GDP in the second quarter of 2022. The industry saw a 6.55% growth rate from Q1 2022.
The oil sector's contribution, which used to dominate the country’s GDP bottom line, fell to 6.33% in Q2 2022, a position lower than its 7.42% in Q2 2021 and 6.63% in Q1 2022.
Per the report, the non-oil sector contributed 93.67% to the nation’s GDP in the period in review. The non-oil sector’s contribution grew by 4.77% from the previous rate. The non-oil sector was driven mainly by telcos, trade, financial institutions, transportation, agriculture, and manufacturing (food, beverage, and tobacco). The report also showed economic activities around telecoms and trade services after the COVID-19 pandemic.
From the report extracted on the impact of different sectors contributing to GDP growth, it has been shown that the ICT sector continues to serve as a catalyst for the growth and diversification of our economy.
The financial sector and e-commerce have had their development thrive on the back of telecom and the ICT sector. Also, technology and telecommunications provided the basis of connectivity, and meaningful connectivity that ensures that electronic transactions are carried out and a certain degree of automation is introduced like never before. This improvement in productivity will only increase the GDP to exceed our population growth and raise many Nigerians out of the poverty trap.
Another major point is technology would further transform Nigeria’s economy when the 5G network became operational fully in the country. 5G is the fifth generation of cellular technology. It is designed to increase speed, reduce latency, and improve the flexibility of wireless service. 5G will revolutionize and transform our way and how of doing things – from education to agriculture, education, banking, security to entertainment, and governance in general. The availability of a fast wireless network will enable virtual learning, meetings, seminars, striking deals, consulting, sales, tours, and exhibitions. 5G will empower our educators to re-imagine what is possible inside and outside their classrooms.
Artificial intelligence plays an increasingly important role in our lives and economy and is already having an impact on our world in many different ways. Worldwide competition to reap its benefits is fierce, and global leaders – the US and Asia – have emerged on the scene. AI is seen by many as an engine of productivity and economic growth. It can increase the efficiency with which things are done and vastly improve the decision-making process by analyzing large amounts of data. It can also spawn the creation of new products and services, markets, and industries, thereby boosting consumer demand and generating new revenue streams.
Research launched by consulting company Accenture covering 12 developed economies, which together generate more than 0.5 % of the world's economic output, forecasts that by 2035, AI could double annual global economic growth rates. AI will drive this growth in three important ways. First, it will lead to a strong increase in labor productivity (by up to 40 %) due to innovative technologies enabling more efficient workforce-related time management. Secondly, AI will create a new virtual workforce – which could be described as a virtual workforce – capable of solving problems and self-learning. Third, the economy will also benefit from the diffusion of innovation, which will affect different sectors and create new revenue streams.
The proper deployment of ICT will also propel small and medium enterprises to increase their present contribution to the country’s GDP. According to a Gartner report, technology and services associated with communications, commerce, and payments would impact business performance over the next 10 years in Nigeria and other African countries.
The mastering and excellent use of various technologies will allow African businesses to engage with global partners and benefit from mature market expertise, leading to the creation of an improved, sustainable ecosystem.
In any developing country, the advancement of technology is highly beneficial. The impact of technology does not only improve the Nigerian economy but it is also set to improve the overall standard of living.
Absolutely, the importance of technology in business eventually produced a proportional GDP growth and a valuable lifestyle. Businesses are growing extensively and progressively. It provides a quicker, more appropriate, and more competent system of performing business relations. The good thing that brought by technology in the business world has also influenced the living of every individual and the society it belongs.