Digital dynamics: exploring ICT's role in revolutionising Nigeria's trade sectors

Purpose - This study examined the influence of information and communication technology (ICT) on Nigeria's trade in sectors. Specifically, the research evaluated the effects of internet penetration, mobile phone subscriptions and fixed telephone subscriptions on exports and imports. Design/methodology/approach - The study considered data from 1995 to 2022, highlighting ten trade sectors per standard international trade classification (SITC) single digit. It utilised the panel auto-regressive distributed lag (ARDL) with a preference for a pooled mean group (PMG) estimator. Findings - The study finds that, in the short run, increases in internet penetration, mobile phone subscriptions and fixed telephone subscriptions significantly decrease export levels in Nigeria. Nonetheless, ICT advancements, particularly in mobile and fixed telephone subscriptions, significantly boost import activities by 17.9 and 41.5% in the long run, highlighting their positive impact on trade dynamics. In the long run, mobile telephone subscriptions substantially negatively affect exports. In contrast, internet penetration and fixed telephone subscriptions show no significant impact, indicating differing influences of ICT components on trade over time. Practical implications - The study underscored the need to prioritise enhancing ICT infrastructure to boost export growth, especially in sectors identified under the SITC framework. Strategies should be developed to mitigate the negative impacts associated with ICT advancements. Originality/value - The study used the SITC framework, which presents different export and import sectors. It offers a distinctive examination of the short- and long-term effects of ICT on Nigeria's trade sectors. It also provided valuable insights into the impact of mobile and internet technologies on exports and imports, highlighting sector-specific effects and the need for strategic resource allocation.