Nigeria’s telecom sector has experienced a remarkable 102% growth in Value Added Tax (VAT) revenue between 2022 and 2024. According to recent data, VAT revenue from the information and communication sector rose from N127.03 billion in the first half of 2022 to N256.34 billion in the same period of 2024.
This surge is attributed to increased data usage, driven by the growing demand for internet services. The sector’s contribution to Nigeria’s GDP also increased, with telecoms alone accounting for 82.74% of the sector’s N3.62 trillion Q2 2024 GDP contribution.
Industry experts, including Adeolu Ogunbanjo, National President of the National Association of Telecoms Subscribers, and Karl Toriola, CEO of MTN Nigeria, confirm the trend. “More people are online,” Ogunbanjo noted, while Toriola stated, “A lot of people are shifting their consumption from traditional voice and circuit switch services to data services.”
Monthly internet usage has skyrocketed by 501.99% since 2019, with 85% of Nigerians using mobile internet for video calls, 75% for watching online videos, and 54% for listening to music.
However, economic challenges threaten this growth. Rising costs and declining service quality may reduce internet usage. The government aims to boost telecom sector earnings, with Minister Bosun Tijani outlining plans to double sector revenue by 2027.
