Telecoms rebound adds ₦7.47 trillion to Nigeria’s GDP

2025/12/02 19:23

Nigeria’s telecommunications sector is having its strongest run in years as Gross Domestic Product (GDP) contribution increased by 21.49% in Q3, 2025. This is as overall economic growth continued its rebound after years of slow growth, according to the latest data from the National Bureau of Statistics.

GDP grew by 3.98% (year-on-year) in real terms in Q3 2025, higher than the 3.86% recorded in the third quarter of 2024 as the recalculation of measurable economic output (GDP rebasing) and economic reforms, such as the removal of fuel subsidies and the free float of the naira, began to bear macro results.

Agriculture (3.79%), industry (3.77%), and services (4.15%) all recorded the strongest growth, with services, where telecoms sit, making up 53.02% of GDP from 52.93% in 2024.

In nominal terms, GDP hit ₦113.59 trillion ($78.42 billion), up 18.12% from a year earlier. Telecoms contributed ₦7.47 trillion ($5.16 billion), accounting for 6.58% of total output. The sector has grown 21.49% from the ₦6.15 trillion ($4.25 billion) recorded in the previous year.

The telecoms sector’s rebound has been driven by the 50% tariff hike implemented earlier this year, rising data demand, and a more predictable macro environment.

MTN Nigeria and Airtel earned ₦5.16 trillion ($3.56 billion) in the first nine months of 2025. MTN swung from a ₦514.9 billion ($355.49 million) loss to a ₦750.2 billion ($517.94 million) profit, while Airtel reported $376 million in profits after FX gains.

This turnaround is translating into broader economic benefits. For instance, telcos will have to pay more tax in 2025, resulting in additional revenue for the nation. In 2024, Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, projected that the digital economy could generate up to $18.3 billion by 2026, hinting that the sector was capable of revolutionising economic growth.

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