Manny Ita –
Nigeria’s Federal Government is projecting a major boost in non-oil revenue, with an estimated ₦874 billion expected from the telecommunications sector in 2026, driven largely by contributions from leading operators MTN Nigeria and Airtel Nigeria. The projection forms part of the fiscal framework supporting the expanded 2026 national budget and reflects growing confidence in the sector’s performance.
According to details from the National Assembly’s Joint Committee on Appropriations, the anticipated revenue will come primarily from corporate income taxes, with MTN Nigeria projected to contribute about ₦724 billion, while Airtel Nigeria is expected to generate approximately ₦150 billion. Together, these figures account for the total ₦874 billion tax windfall expected from the sector.
The surge in projected tax revenue follows recent policy reforms and tariff adjustments within the telecommunications industry, which authorities say have helped correct longstanding structural challenges. These changes have improved profitability, strengthened the operating environment, and increased the sector’s overall contribution to government revenue.
Officials also note that renewed investor confidence has accompanied the reforms, with capital inflows and investment commitments in the telecom sector reportedly exceeding $2 billion. This growth trajectory signals a transition from previously constrained tax yields to a more robust and expanding revenue base for the government.
The projected telecom tax earnings are a key component of the government’s broader strategy to diversify revenue sources away from oil, especially as it seeks to finance an enlarged budget estimated at over ₦68 trillion. Alongside oil benchmark adjustments and increased borrowing, telecom sector contributions are expected to play a critical role in funding infrastructure, healthcare, and other priority areas.
Economic analysts say the development underscores the growing importance of Nigeria’s digital economy, with telecommunications emerging as one of the most reliable sources of tax revenue. However, they also emphasize that sustained growth will depend on continued regulatory stability, improved service delivery, and the ability of operators to maintain investment momentum in network expansion and innovation.
