By Juliet Umeh

Nigeria’s Information and Communications Technology, ICT, sector has reaffirmed its importance to the nation’s economy, contributing 17.68 percent to Gross Domestic Product, GDP, in Q4 2024, according to the latest report from the National Bureau of Statistics, NBS.
Experts attribute this steady growth to a combination of increased digital adoption, expanding telecom infrastructure, and growing consumer demand for internet services.

According to NBS, the telecommunications sub-sector remains the driving force, contributing 14.4 percent of the ICT sector’s total GDP share.
Despite economic challenges, telecoms have continued to thrive due to rising mobile subscriptions, increasing broadband penetration, and growing digital financial services usage.
According to former CEO of OPay as well as former CEO Chief Marketing Officer of Airtel, Olu Akanmu, the telecom industry has benefited immensely from Nigeria’s increasing digital dependency.
Akanmu stated: “Telecommunication is the biggest beneficiary of the accelerating use of digital technology in financial services, media, entertainment, and renewable energy. “The expanding last-mile internet connectivity, rising smartphone penetration through pre-owned devices, and surging demand for digital financial services are fueling strong demand for telecom services,” Akanmu explained.
Also, the Nigerian Communications Commission, NCC, confirmed this trend, reporting that mobile network operators, MNOs, activated 4.4 million new telephone lines in January 2025, pushing total subscriptions to 169.3 million—up from 164.9 million in December 2024.
Experts point to digital finance, e-commerce, streaming services, and remote work adoption as key contributors to ICT sector expansion. With more Nigerians relying on mobile banking, fintech solutions, and digital payments, telecoms have seen increased data traffic and service demand.
Similarly, entertainment and media consumption have surged, with more consumers streaming video and music online, further boosting internet subscriptions. The rise of remote work and virtual collaboration tools has also increased reliance on stable internet connections.
The NCC’s latest statistics reveal deeper penetration across different network technologies:
5G adoption grew from 2.46 percent to 2.54 percent and 4G penetration increased from 47.2 percent to 47.23 percent. Also, 2G networks rose from 41.59 percent to 41.63 percent while
3G usage declined from 8.75 percent to 8.6 percent.
Meanwhile, internet users jumped to 141.6 million, reflecting the expanding digital ecosystem. Data consumption also crossed 1 million terabytes, signaling increased online activity.

Despite its progress, the ICT sector recorded a slowdown in nominal and real growth. While the sector’s real GDP growth stood at 5.9% in Q4 2024, this was lower than the 6.32% recorded in Q4 2023. Experts suggest that rising operational costs, forex challenges, and regulatory hurdles may have contributed to this decline.

However, Nigeria’s digital transformation agenda, 5G rollout, and increasing broadband investments are expected to sustain ICT sector growth in the coming years. As government policies continue to support innovation and infrastructure development, experts believe ICT will remain one