Telecoms sector surges 10.38% as Nigeria’s digital economy hits N5.2trn in Q2

Nigeria’s telecommunications and information services sector generated N5.20 trillion in real economic output in the second quarter of 2026, as rising data consumption and stronger performance by major operators continued to drive growth.

According to the latest Gross Domestic Product (GDP) report released by the National Bureau of Statistics (NBS), the sector grew by 10.38 per cent year-on-year in real terms during the quarter, significantly higher than the 7.39 per cent recorded in the second quarter of 2025.

The performance placed telecommunications and information services among the fastest-growing components of the Nigerian economy, expanding at more than twice the pace of the overall economy, which recorded real GDP growth of 4.43 per cent in the second quarter of 2026.

The sector’s contribution to real GDP also increased to 9.72 per cent, compared with 9.20 per cent in the corresponding quarter of 2025 of second quarter

The broader sector contributed 11.74 per cent to Nigeria’s real GDP, up from 11.18 per cent in the second quarter of 2025 and 11.31 per cent in the first quarter of 2026.

In nominal terms, the Information and Communication sector generated N14.64 trillion, representing 12.27 per cent of aggregate nominal GDP. This was an increase from N10.07 trillion, or 10 per cent, recorded a year earlier, translating to nominal growth of 45.32 per cent.

The strong telecoms performance coincided with improved financial results from the country’s leading mobile network operators, MTN Nigeria and Airtel Nigeria.

MTN Nigeria reported N1.09 trillion profits before tax in the first half of 2026, representing a 75.4 per cent increase year-on-year. The company attributed the performance to stronger data demand, improved operating efficiency and lower borrowing costs.

Average monthly data consumption per MTN subscriber rose 15.2 per cent year-on-year to 14.8GB, while its active data-user base increased 9.3 per cent to 55.7 million.

Airtel Nigeria also recorded significant growth, posting $501 million in revenue, representing a 50.4% increase in reported currency and 29.8 per cent in constant currency.

Data remained the company’s biggest growth driver, with revenue rising 59.9per cent to $263 million, while voice revenue increased 42.6 per cent to $191 million.

Airtel’s EBITDA climbed 58.4 per cent to $293 million, with its EBITDA margin improving to 58.6 per cent. Its customer base also grew 12 per cent to 60.1 million, while data customers increased to 32.5 million.

The sector’s expansion reflects Nigerians’ growing reliance on digital connectivity. The Nigerian Communications Commission (NCC) said in May that daily data consumption in the country had reached about 45,800 terabytes.

Other components of the Information and Communication sector also recorded growth in the second quarter. Broadcasting grew 4.98 per cent, while motion pictures, sound recording and music production expanded by 9.15 per cent. Publishing recorded more modest real growth of 1.90 per cent.