ABSTRACT Most developing nations have embarked on various reforms that foster the use of telecommunications in their economies. The reforms tend to yield little or minimal benefits to economic growth and development, especially when compared with developed countries of the world. Technological advancement is known for its fast rate of economic development. In Nigeria, policy on the adoption of information and communication technologies was initiated in 1999, when the civilian regime came into power of government. The operations of the licensed telecommunications service providers in the country have created some well-felt macroeconomic effects in the economy in terms of job creation, faster delivery services, reduced transport costs, greater security and higher national output. This study investigates the effect of telecommunications investment on gross domestic product (GDP) in Nigeria, and also to estimate the statistical significance of the impact of technology acquisition on Nigeria’s economic growth using time series regression analysis involving ordinary least square (OLS) method of regression. Data for the telecommunications investment and the Gross Domestic Product indicators were used for the empirical analysis. Quarterly data was also used from 1999-2008. The effect of telecommunications investment on economic growth was estimated to be significant and positive as it is portrayed in some economic literature. The contribution of telecommunications investment indicators using the ordinary least square method shows that the results of the estimates were consistent and unbiased, an indication that the indirect effect of telecommunications investment on the Nigerian economy is deterministic. Finally, the contribution of mobile subscribers on telecommunications investment and economic growth was revealed to be positive and significant in the time series regression analysis suggesting an increase in the demand for mobile telecommunications services in Nigeria.