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

The newly inaugurated President of the Institute of Software Practitioners of Nigeria (ISPON), James Agada, has questioned the reported contribution of Nigeria’s software industry to the national economy, saying the sector’s economic footprint appears inconsistent with its size and level of activity.

Agada said the software industry reportedly employs more than one million people directly and indirectly and has over 100,000 registered companies, yet the latest data from the National Bureau of Statistics (NBS) indicate that the sector contributes less than 0.2% to Nigeria’s Gross Domestic Product (GDP).

He raised the concern during his inauguration as President of ISPON’s 2026/2028 National Executive Committee, where he outlined his priorities for growing the local software industry and increasing its contribution to the Nigerian economy.

What the ISPON President is saying

While noting that ISPON currently has about 500 corporate members and 10,000 individual members, Agada said there might have been a miscalculation of the sector’s contribution to the GDP figure.

• “While our sector reputedly employs over a million people directly and indirectly, with more than 100,000 registered companies operating, the latest NBS reports indicate we contribute less than 0.2% to the national GDP. Perhaps this is an undercounting by the NBS,” Agada said.

According to Agada, the significant amount Nigerians spend on foreign software products and services could be one reason the sector’s local economic contribution remains low despite the size of the industry.

• “The licenses, subscriptions, support fees, and service fees we pay outward represent revenue that should be growing our own national GDP,” he said.

Agada attributed part of the challenge to the limited opportunities available to Nigerian software…