Nigeria’s telecom reforms may push sector’s GDP contribution to $25bn

Sweeping reforms at the Nigerian Communications Commission (NCC) are positioning the country’s telecommunications sector towards contributing up to $25 billion annually to Nigeria’s Gross Domestic Product (GDP), according to projections based on ongoing policy changes and market trends. Under the leadership of Executive Vice Chairman Dr. Aminu Maida, who was appointed by President Bola Tinubu […]

Sweeping reforms at the Nigerian Communications Commission (NCC) are positioning the country’s telecommunications sector towards contributing up to $25 billion annually to Nigeria’s Gross Domestic Product (GDP), according to projections based on ongoing policy changes and market trends.

Under the leadership of Executive Vice Chairman Dr. Aminu Maida, who was appointed by President Bola Tinubu in October 2023, the Commission has ushered in a wave of structural reforms aimed at strengthening regulatory discipline, improving investor confidence, and enhancing transparency across the sector.

The impact of the reform is already being felt in the sector. According to the National Bureau of Statistics (NBS), the ICT sector contributed 17.68% to GDP in Q4 2024, with telecommunications alone accounting for 14.4 percent—outpacing traditional sectors such as oil and agriculture in relative growth.

Last year, telecom sector revenues hit $7.6 billion, with analysts forecasting an 8% compound annual growth rate (CAGR) through 2028. If sustained, this growth would push the sector’s contribution to GDP past the $25 billion mark, driven by rising broadband penetration, digital payments, and increasing tech adoption nationwide.

“The sector’s performance in 2024 has been phenomenal,” said Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON). “The regulatory role of the NCC, as well as the business‑friendly policies implemented by the Commission and Minister Bosun Tijani, have been crucial.”

The NCC’s reforms are strongly backed by the presidency and are aligned with wider digital economy policies championed by the Ministry of Communications, Innovation and Digital Economy. A major pillar of this momentum is the ongoing review of the Nigerian Communications Act (NCA) 2003.

The updated legislation—currently under consideration at the National Assembly—seeks to address outdated regulatory provisions and reduce systemic challenges like high Right of Way (RoW) costs, infrastructure vandalism, and cybersecurity gaps. Industry stakeholders believe the reforms could lower operating costs and accelerate rural connectivity.

While Nigeria’s overall GDP growth ranged from 0.51% to 5.01% between 2021 and 2024, the telecoms sector recorded double-digit growth, with 16.36% in 2024 and 14.13% in 2023. Industry observers say the sector’s resilience amid macroeconomic volatility highlights its strategic role in economic transformation.

From under 300,000 mobile lines in 2001 to over 169 million active lines today, Nigeria’s telecom evolution is also driving digital financial inclusion, with mobile money and USSD banking helping to raise financial inclusion rates from 56% in 2020 to 64% in 2023.

Beyond economic value, the sector has created an estimated 2.3 million jobs, directly and indirectly. Broadband penetration reached 48.15% as of May 2025, supporting expanded access to digital health, education, agriculture, and e-government services.

The Minister of Communications, Innovation and Digital Economy, Bosun Tijani’s flagship “3 Million Technical Talent (3MTT)” initiative—launched in November 2023—is also helping equip Nigeria’s youth with globally relevant digital skills. His ministry’s alignment with NCC reforms is seen as a key factor in accelerating the sector’s development.

As the digital economy continues to deepen, analysts say the combination of regulatory discipline, enabling legislation, and strategic policymaking could cement the telecom sector as the backbone of Nigeria’s 21st-century economy.

With a $25 billion GDP contribution now in sight, Nigeria’s telecom industry appears set to move from being a supporting player to a primary driver of inclusive, tech-powered national growth.

By Sola Onamodu, a Lagos Based Journalist