Telecoms Adds Nearly N489bn to Nigeria’s Economy as Sector Grows 10.38%

Nigeria’s telecommunications industry added nearly N489 billion to real economic output in the second quarter (Q2) of 2026 as the sector expanded 10.38 percent year-on-year and increased its contribution to national GDP.

Data from the National Bureau of Statistics (NBS) showed that real output from Telecommunications and Information Services rose to N5.20 trillion in Q2 2026 from N4.71 trillion in the corresponding period of 2025.

The difference amounts to about N488.9 billion in additional real output over the one-year period.

The sector’s contribution to real GDP also increased to 9.72 percent in Q2 2026 from 9.20 percent a year earlier and 9.19 percent in the first quarter of 2026.

That makes telecommunications one of the largest individual activities in the Nigerian economy, behind only trade, crop production and real estate in terms of contribution to real GDP.

Trade accounted for 17.93 percent of real GDP in the quarter, crop production contributed 17.66 percent and real estate represented 12.71 percent, while telecommunications accounted for 9.72 percent.

The expansion in telecommunications also helped lift the broader Information and Communication sector.

The sector grew 9.62 percent in real terms in Q2 2026, compared with 6.61 percent in the corresponding period of 2025.

Its contribution to real GDP increased to 11.74 percent from 11.18 percent a year earlier and 11.31 percent in Q1 2026.

Telecommunications remained by far the largest component of Information and Communication, alongside publishing, motion picture and music production, and broadcasting.

The subsector also outpaced the broader Nigerian economy, which grew 4.43 percent in real terms during the quarter.

Overall GDP increased from N51.20 trillion in Q2 2025 to N53.47 trillion in Q2 2026 at constant 2019 basic prices.

The nearly N489 billion increase in telecommunications output therefore represented a significant share of the additional real activity generated across the economy during the period.

Nominal telecommunications output recorded an even sharper increase.

At current prices, Telecommunications and Information Services rose to N12.04 trillion in Q2 2026 from N7.78 trillion in Q2 2025.

That represents an increase of about N4.26 trillion in nominal terms.

The subsector’s share of nominal GDP consequently increased to 10.09 percent from 7.72 percent in the same quarter of 2025.

In Q1 2026, telecommunications had accounted for 7.20 percent of nominal GDP.

Nominal growth in Telecommunications and Information Services reached 54.78 percent year-on-year in Q2 2026, compared with 22.76 percent in Q2 2025 and 10.12 percent in Q1 2026.

The difference between nominal and real growth reflects the effect of changes in prices alongside changes in actual economic activity.

The NBS implicit price deflator for Telecommunications and Information Services rose to 231.60 in Q2 2026 from 165.17 in Q2 2025, indicating a substantial increase in the price level associated with activity in the subsector.

However, even after adjusting for price effects, real telecommunications output still increased by 10.38 percent.

That growth rate was stronger than several other major sectors of the economy during the quarter.

Trade expanded by 2.40 percent, real estate by 3.76 percent, agriculture by 4.39 percent, construction by 6.75 percent and finance and insurance by 9.29 percent.

Telecommunications therefore remained one of the fastest-growing large sectors in Nigeria’s GDP structure.

The broader Information and Communication sector also benefited from expansion in other components.

Motion Pictures, Sound Recording and Music Production grew 9.15 percent in real terms, broadcasting expanded 4.98 percent and publishing grew 1.90 percent.

Still, telecommunications accounted for the overwhelming majority of the sector’s real output.

Telecommunications and Information Services generated N5.20 trillion of real output in the quarter, compared with N762.29 billion from broadcasting, N305.60 billion from motion pictures and music production and N8.55 billion from publishing.

The performance also strengthens the role of services in Nigeria’s economic structure.

Services accounted for 56.62 percent of real GDP in Q2 2026 and grew 4.60 percent year-on-year, compared with 4.39 percent growth in agriculture and 3.96 percent in industry.

NBS identified telecommunications among the activities that drove growth in the non-oil economy during the quarter.

The non-oil sector expanded 4.31 percent in real terms and accounted for 95.84 percent of total GDP.

The latest data underline the increasing weight of telecommunications in Nigeria’s economy with the sector contributing almost one-tenth of real GDP and adding close to N489 billion in inflation-adjusted output within one year.