Telecom sector shows resilience, contributes 9.1% to Q3 GDP
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- Telecom sector shows resilience, contributes 9.1% to Q3 GDP
By Upfrontdigital News
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Bosun Tijani
By Favour Unukaso
NIGERIA’s telecommunications sector has continued to demonstrate its vital role in the nation’s economy, contributing a substantial 9.1 per cent to the country’s real Gross Domestic Product (GDP) in the third quarter of 2025. This was up 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 sector, which is the dominant force within the Information and Communication Technology (ICT) sector, was a major driver of the 3.98 per cent overall GDP growth recorded for 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 ₦4.4 trillion of the nation’s real GDP in Q3 2025, representing about 84.5 per cent of the total ICT sector contribution (₦5.2 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.
Aminu Maida
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. Industry stakeholders and the government remained focused on addressing operational challenges, such as foreign exchange scarcity and high operating costs, to ensure the sector continues to provide the infrastructural foundation needed to meet Nigeria’s ambitious goal of transitioning toward a $1 trillion-dollar digital economy.
Other sectors that lifted the GDP include the Agric industry. Agriculture 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 in Q3 2024. Livestock added another 6.18 per cent, underscoring the sector’s central role in sustaining national output and food security.
President Tinubu
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 3.80 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 percent reflected a slowdown from previous periods, illustrating its declining proportional significance to overall economic output.
Other contributors included the industrial sector, with food, beverage & tobacco manufacturing adding 3.44 per cent and construction contributing 3.03 percent amid ongoing infrastructure projects and private development.