ICT sector, output and employment generation in Nigeria: Input-output approach

This study assesses the contributions of ICT sector to the Nigerian economy after the reform of the sector in 2001. Using the input-output table for 2001, 2006 and 2011, the study specifically examines the output and employment contributions of ICT sector to sectors of the economy including the ICT sector itself. The study computes the contributions along the lines of direct, indirect and induced output and employment effects of the ICT sector’s activity. The study finds that ICT sector has contributed some output and employment the economy through its linkage with other sectors. Among the sectors, services sector seems to benefit much more from ICT sector reform than any other sector. While most of the benefits accrue to other sectors come from the induced effects of ICT reform, the benefits that accrue to ICT sector itself come mainly from the indirect effects that arise from the inter-sectoral linkages through the buying and selling of ICT sector products, services and contracts. Based on these findings, we propose that for the economy to continue to benefit from ICT sector growth and expansion, all stakeholders in the sector and the government through the Ministry of Communication and Nigerian Communication Commission should work out policies that would create enabling environment for the sector to thrive more efficiently and also to provide an effective framework that could further integrate the ICT sector with the rest of the sector in the economy.