Nigeria’s telecommunications industry tightened its hold on the economy in 2025, posting a real Gross Domestic Product (GDP) contribution of N18.5 trillion as rising data demand and rapid 5G deployment deepened the country’s digital shift.
Fresh data from the National Bureau of Statistics (NBS) show the sector accounted for 8.3 percent of real GDP during the year, edging up from 8.1 percent in 2024. In nominal value terms, that translates to an increase from N17.2 trillion to N18.5 trillion, a clear indication that telecoms is not only expanding, but doing so faster than many other segments of the economy.
At the heart of the surge was data. By December 2025, roughly 148 million Nigerians were actively connected to the internet, consuming an estimated 1.4 million terabytes of data in a single month. The figures reflect how deeply digital services have become embedded in daily life, from streaming and fintech transactions to remote work and online education.
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Broadband penetration crossed a symbolic threshold, closing the year at 51.97 percent. While that remains short of the federal government’s 70 per cent target, it marks the first time coverage has moved beyond the halfway mark, underscoring steady infrastructure gains.
Quarterly performance showed a consistent build-up in momentum. Telecoms contributed N4.2 trillion in the first quarter, rose to N4.7 trillion in Q2, moderated slightly to N4.4 trillion in Q3, and peaked at N5.2 trillion in the final quarter, the strongest showing of the year.
The wider Information and Communication sector also rode the upswing. Altogether, the segment delivered N22.3 trillion to real GDP in 2025, representing 10.1 percent of total output. Telecommunications and information services remained the anchor, generating N18.47 trillion, about 81.5 percent of the sector’s total. Broadcasting accounted for 10.2 percent, motion pictures and music production 6.7 percent, while publishing contributed 1.6 percent.
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Behind the numbers was an aggressive investment cycle.
The Nigerian Communications Commission disclosed that operators added about 2,800 new towers during the year and collectively committed more than $1 billion to fibre rollout and network upgrades. The spending spree reflected the industry’s push to expand capacity and improve quality of service amid surging traffic.
At company level, capital expenditure climbed sharply. MTN Nigeria more than doubled its investment outlay to N1 trillion in 2025, up from N443.5 billion a year earlier, as it accelerated modernisation of its radio and core networks. Globacom expanded its base station count, strengthened backbone transmission links and deployed hybrid battery systems across several sites to stabilise power supply.
Airtel Nigeria pushed deeper into 5G, more than doubling active 5G locations within the year. The operator also sealed a Direct-to-Cell partnership with Starlink aimed at extending connectivity to remote and underserved communities. As part of its medium-term strategy, the company said it plans to increase its fibre footprint by 25 percent.
The telecoms upswing unfolded against a gradually improving macroeconomic backdrop. Nigeria’s real GDP expanded by 4.07 percent year-on-year in the fourth quarter of 2025, compared with 3.98 percent in the same period of 2024. Full-year growth came in at 3.85 percent, up from 3.34 percent recorded the previous year.
Financial results mirrored the operational rebound. Airtel Nigeria posted a 52.2 percent year-on-year increase in revenue to $1.13 billion for the nine months ended December 2025, buoyed largely by data earnings. MTN Nigeria, which recorded a N400 billion loss in 2024, returned to the black with a profit after tax of N1.1 trillion in 2025.
Taken together, the figures suggest the sector has moved decisively beyond post-reform recovery and into a fresh expansion phase. With data traffic still climbing, 5G networks spreading and fibre infrastructure stretching further into secondary cities and rural corridors, telecoms is consolidating its position as one of the most capital-intensive and resilient drivers of Nigeria’s economic growth.
If current investment levels are sustained and broadband adoption continues to widen, industry watchers say the sector’s share of national output could edge higher still, particularly as emerging digital services open new revenue streams across finance, commerce, health and education.
