Telecom sector shows resilience as GDP contribution rises to 9.1%

By : Adeyemi Adepetun

Date: 3 December 2025 4:47am WAT

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Nigerian telecoms sector

Nigerian telecoms sector

The telecommunications sector has continued to demonstrate its vital role in the economy, contributing a substantial 9.1 per cent to the country’s gross domestic product (GDP) in the third quarter (Q3).

This was up marginally from 8.95 per cent in the same period of 2024. According to the latest data released by the National Bureau of Statistics (NBS), the industry, which is the dominant force within the information and communication technology (ICT) sector, was a key driver of the 3.98 per cent overall GDP growth recorded in the quarter.

The telecoms industry, powered by surging demand for mobile data and broadband services, solidified its status as one of the country’s largest non-oil economic contributors. The telecommunications segment alone accounted for approximately N4.4 trillion of the real GDP in Q3 2025, representing about 84.5 per cent of the total ICT sector contribution (N5.2 trillion).

The sector recorded a robust year-on-year real growth rate of 5.78 per cent in Q3 2025, continuing its streak of positive performance despite global and domestic economic headwinds.

The telecommunications sector was explicitly mentioned by the NBS as one of the key pillars driving the growth of the non-oil sector, which contributed 96.56 per cent to the aggregate GDP in the quarter.

The expansion is attributed to increased mobile subscriptions. Active mobile subscriptions have continued to rise, currently nearing 180 million, pushing greater demand for voice and data services.

There has been continued investment in fibre optic networks and 5G deployment by major operators is enhancing broadband penetration, which is critical for the digital economy. Reliable connectivity provided by telecom underpinned the rapid growth of allied sectors, including fintech, e-commerce and digital content creation.

While the year-on-year growth rate of 5.78 per cent reflected a slight deceleration compared to the preceding quarter (Q2 2025), it underscored the sector’s resilience.

Other sectors that lifted the GDP include agriculture, which accounted for just over 31 per cent of real GDP. Crop production led the charge, contributing 23.06 per cent, with its growth rate rising to 3.79 per cent from 2.55 per cent.

Livestock added another 6.18 per cent, underscoring the sector’s central role in sustaining national output and food security. The services sector continued to dominate, representing 53.02 per cent of GDP. Trade activity contributed 16.42 per cent, reflecting sustained household consumption and retail spending across the country. Real estate also proved resilient, accounting for 13.36 per cent of output.

The oil sector, though still critical for government revenue, accounted for only 3.8 per cent of GDP. Crude petroleum and natural gas production rose to an average of 1.64 million barrels per day, up from 1.47 million the previous year, but the sector’s real growth of 5.84 per cent reflected a slowdown from previous periods, illustrating its declining significance to overall economic output.

Other contributors included the industrial sector, with food, beverage and tobacco manufacturing, adding 3.44 per cent and construction contributing 3.03 per cent amid ongoing infrastructure projects and private development.

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