The New Industrial Specialization Report has ranked Nigeria’s IT and information services industry 8th out of 40 nations, and is 27 percent stronger than the global average based on the size of its economy, while its other advanced and strategically important industries perform far below average.

From computers and electronics to machine equipment, together they were 71 percent weaker than the global average in 2020, the most recent year for which data is available. 

“A nation’s economic and national security increasingly depends on how well it performs in the global competition for market share in a select group of advanced industries,” said ITIF President Robert D. Atkinson, who led the new study.

He said the IT and information services industry has been a bright spot for Nigeria, but while it accounts for an increasing share of Nigeria’s economy it has produced a shrinking slice of global output.

Meanwhile, Nigeria remains far behind the global pace in all other advanced industries.”

Using the latest data available from the Organization for Economic Cooperation and Development (OECD), ITIF’s Hamilton Index ranks 40 countries on their performance in 10 advanced and strategically important industries: IT and information services; computers and electronics; pharmaceuticals and biotechnology; machine equipment; electrical equipment; motor vehicles; other transportation equipment; chemicals; fabricated metals; and basic metals.

To assess nations’ performance relative to the size of their economies, ITIF uses an analytical statistic known as a “location quotient” (LQ), which measures any region’s level of industrial specialization relative to a larger geographic unit—in this case, a nation relative to the rest of the world.

Nigeria’s LQ across all 10 advanced industries combined was just 0.29, meaning it was 71 percent weaker than the global average based on the size of its economy—ranking 39th out of the 40 countries studied.

Nigeria’s LQ in IT and information services was 1.27 in 2020 (or 27 percent stronger than the global average)—ranking 8th out of 40 countries studied. But that was down from an LQ of 2.01 in 2010 when Nigeria ranked 2nd in IT and information services.

Nigeria’s IT and information services industry produced $12 billion in value-added output in 2020, which represented a 0.6 percent global market share, down from 1.1 percent in 2010.

Nigeria’s LQ in 2020 was below 0.05 in motor vehicles (0.04); machinery and equipment (0.02); and “other transportation” (0.01), which includes aerospace, shipping, and locomotives. And it was virtually nonexistent in both electrical equipment and computers and electronics.


ITPulse is a wholly information technology communication (ICT) news website, with a special focus on the African continent. The website provides up-to-date biz-tech news, analysis and comprehensive and thorough insight into the continent's ICT terrain

Leave A Reply