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By Chinenye Anuforo
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The telecommunications sector maintained steady growth in the third quarter of 2025, driven largely by rising demand for mobile data and broadband services, despite economic headwinds affecting other parts of the economy.
Latest figures from the National Bureau of Statistics (NBS) showed that the sector recorded a real year-on-year growth rate of 5.78 per cent in Q3 2025, slightly lower than the 6.1 per cent posted in the previous quarter. The performance reflected sustained usage of mobile voice, data services, and internet connectivity across the country.
According to the NBS Q3 2025 GDP report, telecommunications accounted for about 9.1 per cent of the country’s total real GDP during the period, ranking it among the top three contributors to economic output. The sector placed behind only Crop Production and Trade, and ahead of Manufacturing, Real Estate, Construction, and Transportation.
Telecommunications remains the dominant component of the Information and Communication Technology (ICT) sector, contributing more than 80 per cent of total ICT output. Mobile subscriptions have crossed the 220 million mark, while smartphone adoption continues to rise in both urban and rural areas, supporting increased data consumption.
Internet services were identified as a key growth driver, particularly for fintech, e-commerce, digital media, and enterprise services that rely heavily on stable and high-speed connectivity. The NBS noted that the broader ICT sector remained one of the most resilient segments of the economy in Q3 2025, despite a mild quarter-on-quarter slowdown linked to seasonal factors.
Industry analysts attributed the sector’s resilience to continued investment by telecom operators in fibre-optic infrastructure, network expansion, data centres, and 5G readiness. These investments have helped sustain performance even as inflation, foreign exchange constraints, and high energy costs pressured operating margins.
Telecom operators continue to face challenges, including rising costs of powering base stations, most of which rely on off-grid energy sources, as well as increased capital expenditure linked to FX volatility and imported network equipment. Consumer spending pressures have also led many users to favour cheaper data bundles and reduce non-essential voice usage.
Nevertheless, industry experts said growing enterprise demand, infrastructure-sharing arrangements, and gradual 5G rollout are helping to cushion the impact. High-capacity connectivity is increasingly being adopted by businesses for cloud services, data analytics, automation, and emerging AI applications.
The sector’s strong showing also supported the broader Services sector, which contributed over 60 per cent of GDP. While Trade, Finance, and Real Estate recorded growth, telecommunications stood out as one of the most consistent non-oil performers in Q3.
Analysts expect stronger performance in the fourth quarter of 2025, traditionally the industry’s peak period, due to festive-season data consumption and heightened business activity. Continued investment in broadband infrastructure, data centres, and next-generation networks is expected to support growth into 2026.
As the country deepens its push toward a digital and diversified economy, mobile data demand is expected to keep the telecommunications sector at the centre of economic activity and long-term growth.
