Nigerians have continued to scale back their consumption of digital services following the implementation of higher data tariffs earlier this year.
According to data from the Nigerian Communications Commission (NCC), internet usage fell from a record 1 million terabytes (TB) in January 2025 to 983,283.43 TB in April. Usage dipped sharply in February to 893,054.80 TB before rebounding in March to 995,876.10 TB.
In addition to the drop in usage, mobile internet subscriptions declined marginally by 0.12 percent to 141.99 million in April 2025, down from 142.16 million in January. Broadband penetration, however, continued to grow, reaching 48.15 percent.
The decline in data consumption comes after the NCC approved a 50 percent increase in the cost of calls, data, and SMS on January 20, ending a decade-long demand by telecom operators for tariff adjustments to offset rising operational costs.
Read also: Nigeria’s internet usage dips slightly after 50% tariff hike
The adjustment raised the floor price of calls from N6.40 to N9.60 per minute, SMS from N4 to N6, and 1GB of data from N287.50 to N431.25. However, BusinessDay analysis shows that the average cost of 1GB has since risen by 104.35 percent to N587.50.
“I am paying over 60 percent more for data, and I have never been more frustrated with my internet connection,” said Percy Ani, a freelance writer.
Adeolu Ogunbanjo, the president of the National Association of Telecoms Subscribers (NATCOMS), earlier told BusinessDay that the hike has imposed “untold hardship” on many Nigerians. “People are being forced to cut back on their telecom use,” he said.
Bismarck Rewane, chief executive officer of Financial Derivatives Company, noted that while the hike helps operators financially, it burdens consumers and “could result in reduced usage.”
Despite the dip in usage, MTN Nigeria, which has 90.49 million subscribers, recorded N529.44 billion in data revenue in Q1 2025. Airtel Nigeria, with 58.57 million subscribers, reported N208.50 billion ($139 million) in data revenue during the same period.
“Looking ahead, we anticipate continued momentum in service revenue, underpinned by strong demand for data and a proactive approach to customer value management. The recently approved price adjustments are expected to bolster revenue performance as their full effects materialise in the coming quarters,” said Karl Toriola, Chief Executive Officer of MTN Nigeria.
Still, the price hike has not translated to improved service quality as promised by the regulator in January. “Only improved service quality will justify the price hike,” Ogunbanjo said. “Nigerians are still complaining because the poor services have persisted.”
According to industry leaders, improvements are coming, but patience is needed. “We did not invest for years. Thankfully, the government acknowledged this and intervened with tariff reviews and policy support,” explained Yahaya Ibrahim, Chief Technical Officer, MTN Nigeria.
Read also: Monthly internet usage surges 93% on smartphones growth
Aminu Maida, the executive vice chairman of the NCC, recently disclosed that operators are set to invest N1.59 trillion ($1 billion) in network expansion this year. MTN plans to spend nearly N900 billion and has already invested N202.4 billion in Q1 alone.
Beyond network investments, increased fibre vandalism has triggered multiple outages this year. From January 1 to May 19, 2025, operators recorded 89 major outages, with nearly 70 percent traced to fibre cuts caused by roadworks or vandalism, according to Uptime, a network monitoring platform.
These outages left millions of subscribers offline. “Even when we do everything right, a cut in a fibre line or a destroyed hub site can degrade service in an entire cluster,” said Ibrahim of MTN.
However, he is optimistic that by the end of Q3 or early Q4, quality issues will significantly improve. “Equipment are coming in. We have mapped out the areas with the worst congestion, and we are addressing them one by one,” he said.
