Nigeria’s Digital Economy Fuels GDP Growth with 14.19% Contribution in Q1 2025
Nigeria’s digital economy is proving to be a significant driver of economic growth, contributing substantially to the nation’s overall GDP. According to a recent report by the National Bureau of Statistics (NBS), the digital economy sector injected N7 trillion into the real GDP during the first quarter of 2025. This impressive figure represents 14.19% of the total N49.34 trillion real GDP for the period, highlighting the sector’s increasing importance. While total real GDP growth stood at 3.13% in Q1 2025, slightly lower than the 3.76% recorded in Q4 2024, the digital economy’s robust performance signals its potential for further expansion and impact.
Sector Breakdown and Performance
The digital economy sector’s contribution is largely driven by the Information and Communication (I&C) and Financial Institutions (FI) sectors. The I&C sector accounted for 10.59% of the real GDP, while the FI sector contributed 3.60% during the quarter. These sectors emerged as key performers, ranking among the top 10 contributing sectors to Nigeria’s GDP. Specifically, the I&C sector secured the fourth position, following Trade, Crop Production, and Real Estate. The FI sector held the eighth position, underscoring its vital role in supporting economic activities. The consistent performance of the digital economy, fueled by telecommunications and the financial industry, reinforces its position as a major pillar of the Nigerian economy.
In conclusion, the robust contribution of the digital economy sector to Nigeria’s GDP in the first quarter of 2025 demonstrates its pivotal role in driving economic growth. The strong performance of both the I&C and FI sectors highlights the potential for continued expansion and innovation within the digital space, positioning Nigeria to leverage technology for sustainable economic development.
Keywords
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