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Every time Nigerians buy airtime, renew a data bundle, pay for home broadband, or top up Internet for their businesses, they feed a telecommunication economy that generated ₦7.97 trillion ($5.8 billion) in the first quarter of 2026, according to the National Bureau of Statistics (NBS).

The telecoms sector is now Nigeria’s fourth-largest economic contributor behind crop production, trade, and real estate, evidence of how connectivity has embedded itself into daily spending.

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According to the NBS, the Information and Communication sector contributed 11.31% of real gross domestic product (GDP) in Q1 2026, with telecommunications remaining one of its main growth engines.

The sector expanded by 10.98% year-on-year, outpacing headline GDP growth. Nigeria’s economy grew by 3.89% in Q1, 2026. Q1 GDP stood at ₦113.19 trillion($82.45 billion).

But GDP numbers can quickly obscure what is happening in the background: Nigerians are spending more to stay connected, telecom operators are collecting more revenue, and the government is taking more in taxes.

Data became a utility bill

Much of telecom’s recent growth story is being powered by data consumption.

Mobile Internet has moved from convenience to utility with transport, electricity, and food. Remote work, video streaming, online banking, ride-hailing, WhatsApp businesses, and artificial intelligence (AI) tools are pushing Nigerians to spend a larger share of household income online.

MTN Nigeria, the country’s biggest telco, said its top three data applications by usage included TikTok, Facebook, and YouTube in Q1 2026.

“This is consistent with what we see across most markets globally, where these platforms continue to drive the majority of data consumption,” MTN Nigeria’s chief executive officer, Karl Toriola, said on the company’s earnings call on May 4.

Nigeria’s data consumption climbed 40.78% year-on-year to 4.07 million terabytes, roughly 4.07 billion gigabytes, in Q1 2026.

At an estimated  ₦575 ($0.42) per GB, Nigerians spent at least ₦2.34 trillion ($1.70 billion) on internet services in Q1, roughly ₦678 billion ($493.46 million)  more than a year earlier. 

Data has become telecom’s strongest growth engine. Every additional gigabyte consumed translates into higher operator revenues, larger sector output, and ultimately a bigger contribution to GDP.

When data consumption stood at 1.59 million TB (1.59 billion GB) in Q1 2023, the sector’s GDP contribution was ₦5.60 trillion ($4.08 billion), 42.32% lower than the 2026 figure. To achieve the 2026 growth numbers, data consumption had to grow by 155.98%. 

If Nigerians keep using data at the same 34% growth pace seen since 2023, the country could consume about 17.76 billion GB of internet data in 2026. That could mean Nigerians spending ₦10.21 trillion ($7.44 billion) on internet access this year, pushing telecom’s contribution to the economy even higher. 

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While data continues to be the telecoms sector’s fastest-growing business segment, voice remains one of its revenue anchors. 

MTN and Airtel’s voice revenues increased by 22.51% and 36.84%, respectively, in Q1. 

According to the Nigerian Communications Commission (NCC), 36.74% of Nigeria’s 185.51 million connections still rely primarily on 2G networks. For users outside major cities, feature-phone owners remain the lifeblood of their communication.

When telecoms started, voice calls powered revenues and consumption, which powered its first wave of economic contributions. 

Today, data does most of that. But voice remains a steady source of revenue from lower-income users, and every time a phone call connects, it becomes money moving within the economy.  

MTN’s annual voice revenue has grown by an average of 28% since 2023. Airtel’s voice revenue increased by 37.05% for its full year ended March 2026. Revenues from calls are expected to continue anchoring the telecom sector’s GDP contributions. 

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Higher prices play a role 

Telecom’s growing contribution to Nigeria’s economy is not being driven by rising usage alone. It is also being powered by higher prices. 

After years of pressure from inflation, FX volatility, diesel costs, and rising infrastructure expenses, telecom operators finally secured tariff adjustments in 2025 to protect margins and sustain network investment.

The result is a more expensive connectivity market. The average cost of data has risen by 100% since 2024, and the price of calls has jumped by at least 50% since 2025. 

A data plan that once cost ₦1,000 ($0.73) now often costs around ₦2,000 ($1.46); calls that previously cost ₦100 ($0.073) can now cost about ₦150 ($0.11). 

Ordinarily, higher prices could suppress demand. But telecom spending has remained resilient.

Economic data shows that connectivity is becoming less of a discretionary expense and more of a household and business necessity. 

Nigerians may cut back on leisure spending, but a lot of what they need and do, including work, depends on airtime and data.

For the telecoms sector, higher pricing has helped sustain revenues and sector output, reinforcing its growing contribution to GDP. 

Government gets a cut too

Economic growth means people are consuming more, and this ultimately trickles down to the government. 

As Nigerians spend more on airtime, data, and digital connectivity, telecom operators are generating larger taxable revenues and making bigger regulatory payments. 

MTN’s tax bill rose by 176.83% in Q1 2026, reflecting how stronger telecom monetisation increasingly translates into government collections. 

MTN’s annual tax bill has risen by 242.86% since 2022, according to data from its financial results. 

Unlike large informal segments of the economy that are difficult to tax efficiently, telecom transactions are measurable, monetisable, and deeply embedded in daily economic activity.

Nigeria’s growing reliance on connectivity is not only expanding telecom’s contribution to GDP; it is also broadening the collectable revenue base for a government actively seeking new ways to grow its purse. 

Despite generating ₦7.97 trillion ($5.80 billion) in economic value in Q1 2026, Nigeria’s telecoms market remains far from saturated. 

Broadband penetration stood at 54.30% in Q1 2026. An estimated 32 million new unique mobile internet subscribers are expected to come online between 2025 and 2030 in the country.

More connected Nigerians mean more customers for telecoms, more revenue to the government, and a larger economic role for the sector. As phones, broadband, and digital services become woven into everyday life, telecom’s share of GDP may have more room to expand.

Note: Exchange rate used: ₦1,373.25/$