Here is how Nigeria made ₦597 billion off your data bill in 2024

Article Date: 2025-09-15T12:22:52+00:00
Article URL: https://techcabal.com/2025/09/15/how-nigeria-earned-597bn-vat-from-data-bills/
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Summary

Nigeria collected ₦597.65 billion in VAT from the information and communication (ICT) sector in 2024 — largely driven by telecoms and surging data consumption. Data usage rose about 88% to 973,455.35 terabytes, while VAT receipts from the sector jumped 122% from 2022. With VAT at 7.5% applied to calls, SMS and megabytes, rising data usage, tariff hikes and improved tax collection have turned every gigabyte into government revenue.

Key Points

VAT from ICT in 2024: ₦597.65 billion, up 122% from 2022.
Data usage nearly doubled to about 973,455.35 TB in 2024, making data the main revenue driver for telcos.
Telecoms accounted for 81.45% of ICT output; MTN and Airtel reported substantial jumps in data revenue.
Overall VAT receipts rose ~339% since 2020, with VAT the largest non-oil revenue source in 2024.
The government projects rising VAT collections (₦6.95tn in 2025) and plans reforms to boost coverage and collection; increasing the VAT rate remains a policy option.
Expanding smartphone access is central — more devices mean more data purchases and higher VAT take.

Context and relevance

The piece links consumer behaviour (more data) to macro fiscal shifts as Nigeria reduces reliance on oil. It contextualises telecom operators’ earnings, regulatory moves and IMF/fiscal targets, showing why telco revenues now matter for national budgets and tax-to-GDP goals.

Why should I read this?

Because your monthly data spend is quietly padding government coffers — and that affects taxes, policy and what operators do next. If you pay for data, work in fintech, telecoms or public policy, this is short, punchy and worth a quick read.

Source

Source: https://techcabal.com/2025/09/15/how-nigeria-earned-597bn-vat-from-data-bills/