Nigeria’s Digital Economy Contributes 11.8% to Real GDP in Q3 2025 as Sector Records Mixed Growth

The Digital Economy sector contributed 11.8% to Nigeria’s Real Gross Domestic Product (GDP) in the third quarter of 2025, according to new data released by the National Bureau of Statistics (NBS). This marks a decline from the 14.4% contribution recorded in Q2 2025, reflecting a slower quarterly performance.

The sector generated N6.7 trillion out of Nigeria’s N57 trillion real GDP in Q3 2025, reaffirming its position as one of the country’s top economic drivers, supported by major telecom operators and financial institutions.

GDP Performance: Sector Growth Slows QoQ but Rises YoY

Nigeria’s real GDP grew by 3.98% in Q3 2025, slightly lower than the 4.23% growth recorded in Q2 but higher than the 3.86% achieved in Q3 2024.

Information & Communication (I&C) Sector

The I&C sector, comprising telecommunications, publishing, broadcasting, and sound/media production, contributed 9.1% to real GDP in Q3 2025. Although lower than the 11.8% recorded in Q2, the sector showed year-on-year improvement from 8.95% in Q3 2024.

In monetary terms, the sector generated N5.2 trillion, down from N5.72 trillion in the previous quarter.

Breakdown of I&C Contributions:

• Telecommunications: N4.4 trillion (84.5%)
• Broadcasting: N430.7 billion (8.2%)
• Sound & Media Production: N379.2 billion (7.2%)
• Publishing: N9 billion (0.1%)

The sector recorded a 5.78% year-on-year growth rate in real terms.

Financial Institutions (FI) Sector Performance

The Financial Institutions (FI) sector, which includes banks and insurance companies, contributed 2.7% to real GDP in Q3 2025, equivalent to N1.5 trillion, down from N1.75 trillion in Q2.

Breakdown of FI Contributions:

• Financial Institutions: N1.3 trillion (86.7%)
• Insurance: N190.6 billion (13.3%)

Although its quarter-on-quarter contribution dipped from 3.23% in Q2, the FI sector posted significant year-on-year growth of 19.63%, higher than the 2.30% recorded in Q3 2024.

Outlook: Strong Investment Prospects Ahead

Stakeholders project an upward trajectory for Nigeria’s digital economy, driven by increased investments in telecommunications and innovation. Major operators, including MTN, Airtel, and Globacom, are expected to play key roles in expanding sector capacity.

Earlier in 2025, the Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, stated that the sector has the potential to generate $18.3 billion by 2026. He also emphasised that the National Digital Economy Bill 2025 is a foundational element for achieving Nigeria’s ambitious $1 trillion economy target.

With sustained investments and policy support, the digital economy is positioned to further boost Nigeria’s economic transformation in the coming years.