Nigeria Telecoms GDP Hits N18.5tn in 2025 as Data Boom and 5G Rollout Accelerate Digital Economy
Nigeria’s telecommunications industry strengthened its grip on the economy in 2025, contributing N18.5 trillion to real Gross Domestic Product (GDP) as surging data demand and accelerated 5G deployment reshaped the country’s digital landscape. Fresh figures from the National Bureau of Statistics (NBS) show the sector accounted for 8.3 percent of real GDP, up from 8.1 percent in 2024 — underscoring telecoms’ expanding influence at a time when other sectors faced mixed growth conditions.
The growth story was powered largely by data. By December 2025, about 148 million Nigerians were actively connected to the internet, consuming an estimated 1.4 million terabytes of data in a single month. From fintech transactions and video streaming to remote work and online education, digital services are now deeply woven into daily life. Broadband penetration also crossed a symbolic milestone, reaching 51.97 percent — its first time above the halfway mark — though still short of the federal government’s 70 percent target.
Quarterly performance revealed steady momentum throughout the year. Telecoms contributed N4.2 trillion in Q1, rose to N4.7 trillion in Q2, dipped slightly to N4.4 trillion in Q3, and peaked at N5.2 trillion in Q4 — the strongest quarterly showing of 2025. Within the broader Information and Communication sector, total output reached N22.3 trillion, representing 10.1 percent of Nigeria’s real GDP. Telecommunications and information services alone generated N18.47 trillion, accounting for more than 80 percent of the segment’s total contribution.
Behind the numbers was aggressive capital spending. The Nigerian Communications Commission disclosed that operators added roughly 2,800 new towers during the year and invested over $1 billion in fibre rollout and network upgrades. At company level, MTN Nigeria more than doubled its capital expenditure to N1 trillion, modernising radio and core networks. Airtel Nigeria expanded its 5G footprint and partnered with Starlink on a Direct-to-Cell initiative to improve rural connectivity, while Globacom strengthened backbone infrastructure and stabilised power systems across its sites.
The telecoms surge unfolded alongside broader economic improvement. Nigeria’s real GDP grew by 4.07 percent year-on-year in the fourth quarter of 2025, compared to 3.98 percent in the same period of 2024, with full-year growth at 3.85 percent. Financial results reflected the rebound: Airtel Nigeria reported a 52.2 percent revenue increase to $1.13 billion for the nine months ended December 2025, while MTN Nigeria swung from a N400 billion loss in 2024 to a N1.1 trillion profit in 2025. As data traffic continues to climb and 5G networks spread beyond major cities, telecoms appears firmly positioned as one of the most resilient and capital-intensive drivers of Nigeria’s economic expansion.
source: Business day