ISPON questions software sector’s less than 0.2% GDP contribution

The newly elected President of the Institute of Software Practitioners of Nigeria (ISPON) has raised concerns about the software sector's minimal contribution to Nigeria's economy, which stands at less than 0.2% of the Gross Domestic Product (GDP). James Agada, the ISPON president, noted that the software industry employs over a million people and counts more than 100,000 registered companies, yet its economic impact appears inconsistent with these numbers.

Agada expressed doubts about the reported contribution, suggesting a possible miscalculation of the sector's impact. He pointed to the substantial spending on foreign software products and services by Nigerians as a potential reason for the low local economic contribution. Agada attributed part of the issue to the lack of opportunities available to Nigerian software companies, citing weak local patronage and insufficient appreciation of domestic capabilities.

He highlighted that other nations actively promote software as a strategic sector through government support, testing grounds, and access to domain knowledge. To address the visibility challenge, Agada announced plans to establish a National Software Industry Registry within the next six months. Despite these efforts, Agada emphasized that many of the achievements and people behind them have not been adequately recognized or documented.

The latest data from the National Bureau of Statistics (NBS) indicates that the Information and Communication sector, encompassing telecommunications and various services, grew by 9.62% year-on-year in Q2 2026, contributing 11.74% to Nigeria's total real GDP. However, telecommunications remains the primary driver of the sector's GDP growth and contribution.

The 2026 budget allocation for software by government ministries, departments, and agencies shows an annual increase, with NIMC expected to spend the largest amount on software at N7.58 billion.