In the second quarter of 2025, Nigeria’s Digital Economy sector contributed an impressive N7.37 trillion to the nation’s Real Gross Domestic Product (GDP), accounting for 14.4% of the total N51.20 trillion GDP. This data was disclosed in a recent publication by the National Bureau of Statistics (NBS), which also highlighted a 4.23% growth in the country’s overall real GDP for the quarter, up from 3.13% in Q1 2025.
The Digital Economy in Nigeria is primarily composed of two key segments: the Information and Communication (I&C) sector and the Financial Institutions (FI) sector. During Q2 2025, the I&C sector contributed 11.18% to the real GDP, while the FI sector accounted for 3.23%. Both sectors ranked among the top ten contributors to GDP growth, with I&C positioned fourth, showing a 9.20% growth rate, and FI moving from eighth place in Q1 to ninth in Q2 with a 2.84% contribution. Other leading sectors included Trade (18.28%), Crop Production (17.80%), Real Estate (12.80%), and Livestock (5.90%).
The sustained prominence of the Digital Economy is largely driven by the telecommunications and financial services industries, which continue to be vital pillars of Nigeria’s economic landscape.
Delving deeper, the I&C sector experienced a year-on-year real growth rate of 6.61% and a quarter-on-quarter increase of 9.58% in Q2 2025. This sector encompasses telecommunications, publishing, sound and music production, and broadcasting. Its contribution to the total real GDP rose to 11.18% in Q2 2025, up from 10.93% in the same period the previous year. Within this sector, telecommunications dominated with 82.4%, followed by broadcasting at 12.7%, sound and music production at 4.8%, and publishing at 0.1%.
The Financial Institutions sector, which includes banks, fintech companies, and insurance providers, contributed 3.23% to Nigeria’s real GDP in Q2 2025, marking an increase from 2.89% in Q2 2024. Financial institutions accounted for 87.5% of this contribution, while the insurance segment made up the remaining 12.5%.
Overall, the Digital Economy’s N7.37 trillion contribution to real GDP was split between N5.72 trillion from the I&C sector and N1.65 trillion from the FI sector during the quarter. The telecommunications industry was the largest driver within I&C, while financial institutions contributed N1.45 trillion and insurance added approximately N198 billion.
| Breakdown of Nigeria’s Digital Economy in Q2 2025 | ||||
| Information and Communications | Financial Institutions | Total | ||
| Telecommunications | N4.7 trillion (82.4%) | Financial Institutions | N1.4 trillion (87.5%) | |
| Publishing | N8 billion (0.1%) | Insurance | N198.6 billion (12.5%) | |
| Sound and Media Production | N279 billion (4.8%) | |||
| Broadcasting | N726 billion (12.7%) | |||
| Total | N5.72 trillion | N1.65 trillion | N7.37 trillion | |
| % of Real GDP | 11.80% | 2.84% | 14.40% | |
Related Read: Digital Economy accounted for 14.19% of Nigeria’s real GDP growth as the economy expanded by 3.31% in Q1 2025.
Looking at the broader economic picture, Nigeria’s real GDP grew by 4.23% year-on-year in Q2 2025, surpassing the 3.48% growth recorded in Q2 2024 and the 3.13% in Q4 2024. The industrial sector led the GDP composition with a 17.31% share during this period. In monetary terms, the nation’s real GDP rose from N49.34 trillion to N51.20 trillion.
The NBS also updated GDP figures based on a 2019 base year. According to these revisions, real GDP contracted by 6.96% in 2020 but rebounded to 0.95% growth in 2021. The economy then expanded by 4.32% in 2022 and 3.04% in 2023, with 2024 recording a 3.38% growth rate.
Comparing Nigeria’s Digital Economy: Q1 2025 vs Q2 2025
In the first quarter of 2025, the Digital Economy contributed 14.19% to Nigeria’s real GDP, amounting to N7 trillion out of the total N49.34 trillion. The latest figures for Q2 2025 show a slight increase to 14.4%, with a contribution of N7.37 trillion, improving upon the 11.8% share recorded in Q4 2024.
During Q1 2025, the I&C sector accounted for 10.59% (N5.2 trillion) of real GDP, while the FI sector contributed 3.60% (N1.8 trillion). The data indicates growth in the I&C sector but a slight decline in the financial sector’s share in Q2 2025.
Overall, the Digital Economy’s contribution to real GDP rose by 1.5% in Q2 2025 compared to the previous quarter, underscoring its expanding role in Nigeria’s economic development.
Earlier this year, Dr. Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, announced that the sector attracted $191 million in foreign direct investment during Q1 2024-a remarkable 900% increase from $22 million in Q1 2023. Looking ahead, the sector is projected to generate $18.3 billion by 2026.
Industry experts remain optimistic about the Digital Economy’s future, especially with substantial investments flowing into telecommunications. Major players like MTN Nigeria and Airtel Nigeria have recently expanded their infrastructure investments, signaling robust growth prospects for the sector.
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