ICT Gains N4.1trn In 8 Months
The Information Communication and Technology (ICT) sector has gained N4.12 trillion in the first eight months of the year to shore at N11.74 trillion, an increase from N7.62 trillion recorded as of the end of December 2022.
NewsBeatng reports that the sector comprises of ten listed companies, although only two of them are household names, as they are the biggest telcos in the country – MTN Nigeria and Airtel Africa.
The significant gain recorded by the sector was largely due to the N4.08 trillion gain in the market valuation of Airtel Africa, having overtaken the likes of Dangote Cement and MTN Nigerian in January 2022 to become the largest company listed on the stock market.
NewsBeatng reports that the Airtel maintained the position as the most valuable company listed in the local bourse with a market capitalization of N7.7 trillion, gaining over N4.08 trillion between January and August 2022, bringing the total stock market value to over N26 trillion.
Of the 13 sectors in the Nigerian stock market, only four of them are valued above N1 trillion. The sectors are ICT, Industrial goods, Consumer goods, and banking.
A look at Nigeria’s GDP for the second quarter of 2022 indicates that the information and communication sector, which comprises of telecommunication, publishing, motion picture, sound recording, music production, and broadcasting accounted for 18.4% of the nation’s economy, and it was largely due to the growth of the telecommunication sector.
The sector recorded a 6.5% year-on-year real GDP growth in the second quarter of the year compared to the 5.56% growth recorded in the corresponding period of 2021.
On a quarter-on-quarter basis, the ICT sector grew by 13.41% in real terms.
A cursory look at the data in the past 10 years also shows impressive growth in the country’s ICT sector.
Notably, the sector recorded an estimated GDP of N6.27 trillion in 2012 and has surged to N11.39 trillion in 2021, indicating an increase of N5.12 trillion in 10 years.
The telecommunication sector, where the internet and mobile network service providers fall under, accounts for 81.3% of the ICT sector.