Business
Driving digital transformation despite challenges
In spite of the challenging operating environment characterized by willful vandalism and stealing of infrastructure, even after an Executive Order classified telecom equipment as Critical National Infrastructure (CNI), the information communication technology (ICT) sector continued to drive the economy, LUCAS AJANAKU reports.
For Nigeria’s ICT sector, the year 2025 has proved to be a defining year. After the industry contended with the regulatory interventions which led to the clean-ups of unregistered or improperly registered subscriber identity module (SIM) in 2024 and early 2025, subscribers began returning to an upward growth trajectory. Recall the aggressive enforcement of the linkage of every SIM with a National Identity Number (NIN) had led to large numbers of unverified numbers being deactivated. However, by November 2025, Nigeria’s telecom subscriber base rose to approximately 177.4 million active subscriptions, marking a 2.1 million increase (about 1.2 per cent) from October and underscoring a strong rebound following mid-year contractions.
The increase was driven by MTN and Airtel accounting for over 85per cent of the market, adding over 1.6 million connections that month, according to Nigerian Communications Commission (NCC) data. This growth signals a rebound from earlier contractions, with internet connections also climbing, and marks significant progress after a period of regulatory adjustments.
Mobile internet connections also rose, with penetration nearing 50per cent.
Nigeria’s teledensity (connections per 100 inhabitants) also increased, reaching over 80per cent.
Telecommunications companies contributed N4.4trillion to Nigeria’s Gross Domestic Product in the third quarter of 2025, representing 84.5 per cent of the N5.2trillion generated by the wider ICT sector, the National Bureau of Statistics stated in its report.
The ICT sector, which also includes broadcasting, sound and media production, and publishing, accounted for 9.1 per cent of real GDP in Q3 2025, down from 11.8 per cent in the previous quarter. Despite the decline in quarterly share, the sector achieved year-on-year growth of 5.78 per cent, highlighting its sustained contribution to economic expansion.
These figures show that telecom operators, mainly MTN Nigeria, Airtel, Globacom and T2, are the backbone of the ICT sector. The broader digital economy, which includes the financial institutions sector, contributed 11.8 per cent of Nigeria’s real GDP, or N6.7trillion, to the country’s total N57trillion GDP in Q3 2025.
Further, the report stated that broadcasting accounted for N430.7billion (8.2 per cent) and sound and media production contributed N379.2billion (7.2 per cent) to the ICT sector, while publishing remained minimal at N9billionn, representing just 0.1 per cent of the total.
Overall, Nigeria’s GDP grew by 3.98 per cent during the quarter, slightly below the 4.23 per cent recorded in Q2 2025 but higher than the 3.86 per cent growth in Q3 2024.
Evidence of recovery is visible in recent financial statements: MTN Nigeria posted a pre-tax profit of N419.61billion in Q2 2025, compared with a pre-tax loss of N179.60billion in the same period last year.
Airtel Nigeria generated $333million in revenue for the quarter ended June 30, 2025, a 30 per cent increase year-on-year.
After years of rising energy costs and currency volatility, a long-sought 50 per cent tariff increase approved earlier this year has given operators more room to invest. They are now pumping $1billion into network upgrades, much of it spent on Chinese equipment.
The Federal Government is rolling out Project Bridge, a plan to construct 90,000 km of new fibre optic infrastructure, aimed at connecting all six geopolitical zones and increasing internet penetration, particularly in underserved rural areas.
The expansion will build on the existing national fibre backbone, targeting 125,000 km by 2027, and aims to raise internet penetration to 70 per cent by 2025 and 80 per cent for underserved populations by 2027.
While urban areas continue to see high penetration rates, rural regions are catching up, thanks to targeted initiatives aimed at expanding network infrastructure. This urban-rural balance is crucial for inclusive economic growth.
Increased mobile connectivity has spurred the growth of small and medium-sized enterprises (SMEs), allowing them to leverage mobile platforms for marketing, sales, and customer engagement and innovations: The surge in subscribers has prompted mobile network operators (MNOs) to innovate and diversify their offerings. This includes mobile payments, health services, and e-learning platforms, which cater to the needs of a growing digital consumer base.
The contribution of the ICT sector to Nigeria’s GDP, which rose to 12 per cent, underscoring its significance in the areas of digital transformation across various industries, including agriculture, finance, and education. Mobile technology is enabling farmers to access market prices and weather forecasts, improving productivity and economic outcomes.
The growth in GDP contribution is attracting both local and foreign investors. Startups in fintech, health tech, and ed-tech are gaining traction, supported by venture capital investments.
The 3MTT or three million tech talent initiative is particularly noteworthy for several reasons. One is skill development: The project aims to bridge the skills gap in Nigeria’s tech ecosystem. By focusing on critical areas such as AI, data science, and software engineering, it prepares the workforce for future demands.
Youth Empowerment: The initiative not only enhances employability but also encourages entrepreneurship among young Nigerians. Graduates are motivated to start their own businesses, contributing to job creation.
Collaboration with Tech Hubs: The partnerships with tech hubs and educational institutions enhance the quality and relevance of training programs, ensuring they align with industry needs.
President Bola Tinubu said Nigeria’s ambition to become a $1 trillion economy hinges on sustained investment in digital skills and the productivity of its youth.
“The countries that lead the world today are those that invest purposefully in the skills of their young population,” he said.
Tinubu added that digital skills are now essential across agriculture, healthcare, finance, manufacturing, education, and public service, positioning Nigeria as a competitive player globally.
Already, the Federal Government has secured more than N6.45 billion in private sector support to scale up the 3MTT programme across the country.
The Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, said the support from IHS, MTN, and Airtel would strengthen training infrastructure, deepen community engagement, and widen access for young Nigerians preparing for technology careers.
IHS committed N2.5 billion, MTN N2.95 billion, and Airtel N1 billion to the initiative.
Tijani attributed the programme’s rapid growth to strong national demand and President Bola Tinubu’s reforms in the digital economy sector, which aim to improve the lives of ordinary Nigerians.
“Every agenda of his administration and all the reforms that he’s made are solely for the average Nigerian,” he said, adding that the summit also served to appreciate the President’s contribution to the country’s digital economy.
Tijani cited the National Data Protection Commission Act, the 2023 launch of 3MTT, the approval of a $2 billion, 90,000-kilometre fibre project, the designation of telecom infrastructure as critical national assets, and tariff adjustments for operators as catalysts for restoring investor confidence in the sector.
He also detailed previous private-sector contributions, noting that IHS was the first to support the programme with N1 billion at its launch and later invested N1.5 billion to rehabilitate a damaged tech park in Kano.
MTN contributed N3 billion for training, devices, and data, while Airtel provided N1 billion for the 3MTT NextGen stream.
Tijani said non-cash support from global technology companies—including AWS, Google, Huawei, and Microsoft—further strengthened the programme.
The minister said the overwhelming response to 3MTT confirmed that the initiative addressed a genuine national need, with over 1.8 million Nigerians applying within the first month from all states and local governments.
Applicants were required to register with either NIN or BVN, ensuring unique identification.
Tijani explained that the programme is being executed in phases: the first phase trained 30,000 learners starting December 2023, the second phase scaled to one million trainees by July 2024, and the final phase, targeting three million Nigerians, will begin next year.
He said direct employment from the first phase already exceeds 15,000, with many fellows earning salaries above N250,000.
The government has activated 201 applied learning centres nationwide and engaged 583 learning partners and 37 community managers to support delivery.
Highlighting job placement, Tijani said the European Union (EU) and UNDP, through the Jubilee Fellows Programme, provided funding for internship placements, enabling fellows to transition into employment at no cost to host organisations.
Launched in October 2023 by the Federal Ministry of Communications, Innovation and Digital Economy, the 3MTT programme aims to train three million Nigerians in digital and technical skills by 2027 with focus on software development, artificial intelligence (AI), cybersecurity, and data science, combining online learning with in-person instruction across all 36 states and the Federal Capital Territory.
During the period under review, 5G technology adoption continued. The roll out of the technology has significant implications for Nigeria, especially in the area of enhanced connectivity. With 40 per cent of urban areas covered, 5G technology is set to revolutionize industries by enabling faster and more reliable internet access.
The implementation of smart city projects leveraging 5G will improve urban living conditions through better traffic management, waste management, and public safety while the adoption of 5G will create new business models and revenue streams, particularly in IoT, autonomous vehicles, and smart agriculture.
During the period under review, Airtel Africa Foundation was launched, reflecting a broader trend among MNOs to engage in corporate social responsibility (CSR). The initiative will hopefully focus on health and education to improve overall societal well-being, which is essential for sustainable development.
Initiatives that promote digital literacy and access to technology help bridge the digital divide, enabling marginalized communities to participate in the digital economy.
The legacy challenges confronting the sector continued during the year as vandalism took a terrific toll on service quality and cash to fix the infrastructure by the affected MNOs.
The telecommunications and ICT sectors in Nigeria are at a crucial juncture, with significant growth and transformative initiatives occurring alongside persistent challenges. The success of projects like the 3MTT initiative, the expansion of 5G technology, and the efforts of MNOs to engage in community development are paving the way for a more connected and prosperous Nigeria.As the sector navigates its challenges, the dual focus on innovation and security will be essential for sustaining growth and ensuring that the digital economy benefits all Nigerians. The future is bright, but collaboration among stakeholders—government, private sector, and civil society—will be key to realizing this potential.
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