The newly inaugurated President of the Institute of Software Practitioners of Nigeria (ISPON), James Agada, has raised critical questions regarding the official data on the software industry’s contribution to Nigeria’s Gross Domestic Product (GDP). According to recent national accounts, the software sector is reported to contribute less than 0.2% to the national GDP—a figure that Agada describes as highly inconsistent with the visible size, vibrancy, and economic footprint of the industry.
A Disconnect in Data
Speaking on the state of the industry, Agada pointed out that the current economic valuation fails to reflect the reality of Nigeria’s rapidly growing digital economy. Software drives major national systems, from banking applications and fintech platforms to public sector portals and corporate operations. The sheer volume of transactions processed daily by locally built and managed software solutions suggests a far deeper economic integration than the 0.2% figure represents.
This statistical discrepancy raises vital questions about how software assets and services are classified and measured by national statistical bodies, such as the National Bureau of Statistics (NBS). In many instances, software contributions are subsumed under the broader telecommunications or information and communication technology (ICT) umbrellas, thereby masking the true monetary value generated specifically by software development and licensing.
The Impact of Undervaluation
Underestimating the software sector’s GDP contribution has far-reaching consequences. Without accurate data, the government cannot formulate effective policies to support software practitioners. Furthermore, global investors rely heavily on GDP data to assess market viability. A microscopic representation of software’s economic value could deter foreign direct investment and limit the sector’s access to critical funding and grants.
Additionally, a significant portion of Nigeria’s software talent operates in the gig economy or works remotely for international companies. Because these transactions often bypass traditional corporate reporting channels, they remain largely uncaptured in national GDP computations.
ISPON’s Call to Action
Under James Agada’s leadership, ISPON aims to bridge this data gap. The institute plans to collaborate with relevant government agencies, including the NBS and the National Information Technology Development Agency (NITDA), to establish a more robust framework for tracking and reporting software revenues. By refining these metrics, Nigeria can finally recognize the software sector as a cornerstone of its modern economy, paving the way for targeted fiscal policies, improved infrastructure, and sustainable digital growth.