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Broadband, 5G Expansion Drive Telecom Sector Growth as NCC Pushes for 25% GDP Contribution

Ameh Gabriel F. Posted on 2 hours ago 3 minutes read
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By Gabriel Ameh

Nigeria’s telecommunications sector recorded significant growth in 2025, contributing 8.12 per cent to the nation’s Gross Domestic Product (GDP) in the fourth quarter of the year, according to data released by the Nigerian Communications Commission (NCC) and the National Bureau of Statistics (NBS).

The latest figures reaffirm the sector’s growing role as one of the major drivers of Nigeria’s economy.

According to the report, the sector’s contribution increased from 7.29 per cent recorded in the corresponding period of 2024, representing a year-on-year rise of 0.83 percentage points.

The telecommunications and information services sub-sector also posted a real growth rate of 26.34 per cent in Q4 2025, compared with 17.97 per cent recorded during the same period in 2024.

On a full-year basis, telecommunications accounted for 8.3 per cent of Nigeria’s real GDP in 2025, up slightly from 8.1 per cent in 2024.

In nominal value, the sector contributed N18.5 trillion to the economy in 2025, compared to N17.2 trillion recorded in 2024, reflecting an increase of N1.3 trillion.

The figures position telecommunications as the fourth-largest contributor to Nigeria’s GDP, behind crop production, trade and real estate.

Industry analysts attributed the strong performance to increased investment in telecommunications infrastructure, broadband expansion, rising internet usage and wider deployment of fifth-generation (5G) technology.

Data from the report showed that telecom operators added about 2,800 new towers within the year and invested more than one billion dollars in fibre-optic infrastructure and network upgrades.

The number of active telecom subscribers also rose significantly from about 164.9 million in December 2024 to 179.6 million in December 2025, representing an increase of approximately 14.7 million subscribers.

Broadband penetration crossed the 50 per cent mark, reaching 51.97 per cent in 2025 compared with about 45 per cent at the end of 2024.

Internet usage also surged during the period, with about 148 million users consuming nearly 1.4 million terabytes of data in December 2025 alone.

The NCC said the growth was supported by continued investments in 4G and 5G infrastructure, improved spectrum management and policies designed to deepen digital connectivity nationwide.

Executive Vice Chairman of the NCC, Aminu Maida, said the commission is working towards increasing the telecommunications sector’s contribution to Nigeria’s GDP to 25 per cent through supportive regulations and infrastructure development.

According to him, the sector has the potential to contribute more significantly to the economy if the right investments and policies are sustained.

The report further noted that telecommunications has become a major enabler for sectors such as financial services, e-commerce and digital government operations.

It added that continued broadband expansion and digital service adoption are helping to create jobs, improve productivity and expand digital access across urban and rural communities.

Despite the positive outlook, industry stakeholders identified challenges including high energy costs, foreign exchange pressures and infrastructure deployment difficulties as possible threats to future growth.

The NCC, however, assured stakeholders of continued collaboration to strengthen broadband penetration, encourage investment and support the growth of Nigeria’s digital economy.

About The Author

Ameh Gabriel F.

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