Telecom sector records 5.78% real growth in Q3 2025 — NBS

Nigeria’s telecommunications sector sustained its growth momentum in the third quarter of 2025, recording a real growth rate of 5.78 percent, according to the latest Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS).

Although the figure represents a slight decline from the 6.1 percent growth posted in the second quarter of 2025, the NBS said the performance highlights the sector’s resilience amid prevailing macroeconomic pressures affecting other parts of the economy.

The report noted that sustained demand for mobile voice services, data consumption, and broadband connectivity continued to support growth. Ongoing investments by telecom operators in network expansion, fibre-optic infrastructure, and 5G readiness also helped cushion the sector against broader economic slowdowns.

Data from the NBS showed that Nigeria’s mobile subscriber base has exceeded 220 million, with smartphone adoption rising steadily across both urban and rural areas.

Internet services remained a major growth driver, supporting critical sectors such as fintech, e-commerce, digital media, and remote work.

In terms of contribution to the economy, telecommunications accounted for about 9.1 percent of Nigeria’s real GDP in Q3 2025, up from 8.95 percent in the corresponding period of 2024.

This placed the sector among the country’s top-performing industries and underscored the growing importance of information and communication technology (ICT) to economic activity in major urban centres and emerging technology hubs, including Lagos, Abuja, and Port Harcourt.

The NBS report further showed that telecommunications contributed more than 80 percent of total ICT output during the quarter, reinforcing its central role in digital services delivery, enterprise connectivity, financial inclusion, and Nigeria’s economic modernisation drive. Despite a quarter-on-quarter moderation linked to seasonal factors, the sector maintained strong year-on-year growth.

Telecommunications ranked as the third-largest contributor to real GDP in Q3 2025, behind only Crop Production and Trade, and ahead of Manufacturing, Real Estate, Construction, and Transportation and Storage.

However, the sector continued to face operational challenges, including high energy costs due to reliance on off-grid power, foreign exchange constraints affecting equipment imports and network upgrades, and inflationary pressures that have weakened consumer purchasing power.

Industry stakeholders noted that rising demand for mobile broadband, increased adoption of enterprise digital services, data centre expansion, and the gradual rollout of 5G networks have helped offset these challenges.

Long-term investments in fibre-optic infrastructure have also improved data speeds and supported the growth of fintech, streaming platforms, e-commerce, and remote work.

The NBS said the broader Services sector, which contributes over 60 percent of Nigeria’s GDP, benefited significantly from ICT performance in Q3 2025.

While other service industries such as Trade, Real Estate, and Finance recorded growth, telecommunications remained one of the strongest non-oil contributors to the economy.

During the year, major telecom operators expanded investments in digital infrastructure.

MTN Nigeria advanced fibre and data centre projects, including the launch of its Tier III Dabengwa Data Centre in Lagos, while Airtel accelerated 4G and 5G deployments.

9mobile also entered new infrastructure-sharing agreements aimed at reducing costs and improving network coverage.

Analysts project a stronger performance in the fourth quarter of 2025, traditionally the sector’s peak revenue period due to festive spending and increased enterprise activity.

Continued investment in fibre, data centres, and next-generation networks is expected to sustain growth into 2026, despite ongoing risks related to energy costs, infrastructure vandalism, exchange rate volatility, and rising device prices.

Overall, the NBS report reaffirmed telecommunications as a critical pillar of Nigeria’s diversification and digital economy strategy, providing the connectivity needed to support economic resilience, innovation, and long-term growth.