Nigeria’s telecommunications industry continues to demonstrate its critical role in economic expansion, contributing a substantial N4.4tn to the nation’s Gross Domestic Product in the third quarter of 2025, according to the latest sectoral performance report released by the National Bureau of Statistics.
The figure represents 84.5 per cent of the N5.2tn generated by the broader Information and Communications Technology sector.
Despite a slight decline in the overall ICT quarterly share of GDP, the new data reaffirms telecom operators as the engine of Nigeria’s digital economy, driving growth through infrastructure investment, expanded services, and greater subscriber activity.
The ICT sector accounted for 9.1 per cent of real GDP in Q3 2025, down from 11.8 per cent in the second quarter.
Nonetheless, the sector recorded 5.78 per cent year-on-year growth, showcasing its consistent contribution to national productivity despite economic headwinds, currency volatility, and rising operating costs.
Telecom Sector Contribution to GDP: A Key Driver of Digital Growth
The latest statistics underscore the dominant role of telecom operators in the telecom sector contribution to GDP, especially as Nigeria intensifies efforts to build a digital-first economy.
Major operators — MTN Nigeria, Airtel, Globacom, and T2 — accounted for the bulk of the N4.4tn value added during the quarter, reaffirming their position as the largest contributors within the ICT ecosystem.
Beyond telecommunications, the wider digital economy, which includes financial services, contributed N6.7tn, representing 11.8 per cent of real GDP.
This highlights how telecom infrastructure continues to power fintech expansion, digital payments, e-commerce, and other tech-enabled services now central to Nigeria’s economic transformation.
Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria, said the numbers reflect improved responsiveness from policymakers and increased alignment with industry needs.
“The increase in revenue and contribution to GDP is a testament to the policies that have been put in place and the fact that the government has been responsive to industry concerns,” he told our correspondent.
Telecom Sector Contribution to GDP Strengthened by Policy Reforms
The most significant shift for operators in 2025 came from the long-awaited tariff review implemented earlier in the year.
The 50 per cent adjustment in telecom tariffs, industry players say, expanded revenue capacity and created room for fresh investment in network infrastructure.
After several years of battling rising diesel prices, power shortages, and foreign exchange instability, the tariff reform has enabled telcos to commit over $1bn to network upgrades, with a large portion of the investment directed toward Chinese telecommunications equipment.
“When operators pushed for tariff reform, it was implemented.
Other concerns, including cost-of-network infrastructure issues, have been addressed,” Emoekpere added, noting that investor confidence is now improving.
He revealed that many operators are planning additional multiyear investments beginning in 2026, encouraged by improved conditions and the early rollout of government-backed infrastructure projects.
Breakdown of ICT Sector Performance
In its detailed breakdown, the NBS report shows that broadcasting contributed N430.7bn, representing 8.2 per cent of the ICT sector’s value during the quarter.
Sound and media production added N379.2bn, accounting for 7.2 per cent, while publishing remained the least contributor at N9bn, equivalent to just 0.1 per cent.
Industry analysts note that the dominance of telecom operators is expected to increase further as expanding digital lifestyles, broadband demand, and fintech penetration deepen reliance on mobile networks.
Nigeria’s overall economy grew by 3.98 per cent in Q3 2025, slightly below the 4.23 per cent recorded in Q2 2025 but higher than the 3.86 per cent reported in the same period in 2024.
Sector Financial Results Reflect Momentum
Recent financial disclosures from major operators also reflect the momentum captured in the NBS report. MTN Nigeria posted a pre-tax profit of N419.61bn in Q2 2025, reversing a pre-tax loss of N179.60bn in the corresponding period last year.
The turnaround is attributed to improved operational efficiencies, tariff adjustments, and stabilizing costs.
Airtel Nigeria reported $333m in revenue for the quarter ending June 30, 2025 — a 30 per cent year-on-year increase — driven by data usage growth, strengthened enterprise solutions, and network modernization.
Industry observers note that these financial results mirror the broader upward trend in the telecom sector contribution to GDP, driven by a combination of regulatory reforms, infrastructure expansion, and growing digital adoption across socio-economic segments.
Infrastructure Expansion: Project Bridge Gains Momentum
In a bid to accelerate broadband penetration, the Federal Government is rolling out Project Bridge, a national fibre deployment plan expected to add 90,000 km of new fibre optic infrastructure to Nigeria’s existing network.
The project aims to connect all six geopolitical zones, bridge rural connectivity gaps, and strengthen digital access for underserved communities.
The administration’s goal is to expand Nigeria’s national fibre backbone to 125,000 km by 2027, while raising internet penetration from the current levels to 70 per cent by 2025 and 80 per cent for underserved areas by 2027.
Part of the funding for these expansions comes from the $500m World Bank-backed digital infrastructure facility, a portion of which has already been approved for disbursement, according to Emoekpere.
However, experts warn that a key challenge remains the low level of domestic participation in telecoms equipment manufacturing.
The industry remains heavily dependent on foreign vendors, though the Ministry of Communications has hinted at new policies to support indigenous technology players.
“If investment momentum continues, the push for local participation may finally gain traction,” analysts said.
The telecom sector contribution to GDP continues to strengthen Nigeria’s digital transformation and overall economic resilience.
With supportive policies, renewed investor confidence, and ambitious infrastructure plans underway, the sector is positioned to drive even stronger growth in the years ahead.
As telecom operators deepen network investments and expand broadband access nationwide, Nigeria’s digital economy is set to play an even greater role in job creation, innovation, and long-term national development.
