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

Summary

Nigeria collected ₦597.65 billion in VAT from the information and communications sector in 2024 — driven largely by telecoms and surging data use. With VAT at 7.5% and data consumption skyrocketing, the tax take from mobile data has become a major non-oil revenue stream for the federal government.

Article Date: 2025-09-15T12:22:52+00:00

Key Points

VAT from the ICT sector reached ₦597.65 billion in 2024, up 122.31% from 2022.
Data consumption grew by about 88% in the same period, to 973,455.35 terabytes.
Telecoms account for more than 80% of the ICT sector’s output; data—not voice—now drives revenue growth.
Nigeria’s overall VAT receipts rose sharply, becoming the largest non-oil revenue source; VAT policy and collection reforms are being pursued to lift tax-to-GDP ratios.
Proposals to raise VAT above 7.5% were paused by the Senate, but rate increases remain a medium-term option to boost revenue.

Content Summary

The piece explains how everyday data usage — every MB you buy — contributes to government coffers via VAT. Telecom operators reported big jumps in data revenue (MTN’s data revenue more than doubled between 2022 and 2024). As smartphone adoption and data demand rise, VAT collections from telecoms have become a stable and growing income stream, helping reduce Nigeria’s reliance on volatile oil revenues.

The article cites national statistics and industry reports showing rapid growth in both sector output and VAT receipts. It also outlines government targets to raise the tax-to-GDP ratio and projected VAT yields for 2025–2027, while noting efforts to broaden the tax base and improve collection efficiency.

Context and Relevance

This story matters if you follow fiscal policy, telco economics or consumer costs in Nigeria. It ties into broader trends: digital adoption, shifting government revenue mixes away from oil, and policy choices that affect households and businesses. For the telecoms industry, growing data use fuels revenue and shapes investment decisions; for policymakers it’s a lever to fund services and meet fiscal targets.

Why should I read this?

Short answer: because your phone bill is doing more than draining your wallet — it’s padding the government’s tax take. This article breaks down the numbers so you can see how data use, telco pricing and VAT policy combine to shape both consumer bills and national revenue. We’ve read the reports and pulled the figures — so you don’t have to.