Nigeria’s digital economy continues to evolve under challenging economic pressures, and the latest developments in the telecom sector offer a compelling case.Â
After the Nigerian Communications Commission (NCC) approved a significant 50% hike in call, SMS, and data tariffs in January 2025, national internet consumption figures immediately felt the ripple effects.
According to official NCC data, the data used across the country dropped from over 1 million terabytes (TB) in January to about 893,054.80 TB in February. While this dip raised eyebrows, it’s worth noting that internet usage typically tapers off in February compared to January in previous years, largely due to seasonal adjustments following the festive period. However, a recovery was observed in March, with total data consumption reaching approximately 995,876.10 TB, still shy of the January peak.
This slight decline coincided with the long-awaited tariff adjustments, which telecom operators had advocated for over the past decade due to rising operational costs, currency volatility, and infrastructure investment demands. Under the new rates, the cost of 1GB of data rose from ₦287.5 to ₦431.25, SMS costs increased from ₦4 to ₦6, and call rates climbed to ₦9.60 per minute from ₦6.40.
Although these changes aimed at helping telecom companies stay financially viable, they have put pressure on everyday Nigerians. Many households and small businesses battling inflation and reduced purchasing power have had to reassess their digital spending habits. Economist Bismarck Rewane previously warned that while operators would gain a short-term revenue boost, consumers would likely cut back on their usage. This outcome now appears to be playing out.
Yet, despite this dip, telecom giants like MTN Nigeria are still reporting strong financial performance. MTN, which boasts over 90 million subscribers, recorded ₦529.44 billion in data revenue for Q1 2025—a quarterly high. CEO Karl Toriola attributed this growth to rising demand for mobile data and proactive customer engagement strategies. He also projected that the full benefits of the price increase would become more apparent in subsequent quarters, suggesting that the market is gradually adjusting.
Beyond the headline figures on data usage, the broader mobile ecosystem continues to expand. Total mobile subscriptions in the first quarter reached 172.43 million, with 142.05 million users actively connected to the internet. Broadband penetration also grew, hitting 47.73%—an encouraging sign for the country’s ongoing digital transformation goals.
This paints a nuanced picture. While short-term usage has declined, the underlying demand for internet access remains strong. Nigeria’s population—young, tech-savvy, and increasingly digital-first—continues to drive growth in mobile connectivity. Moreover, businesses, educational institutions, and public services increasingly rely on digital infrastructure, further entrenching internet access as a basic necessity.
In the long term, the industry must balance profitability with accessibility. As telecom operators push for sustainable pricing models, regulators and policymakers must ensure that affordability isn’t sacrificed at the altar of corporate margins. Expanding broadband access, especially in underserved rural communities, remains critical to inclusive growth in Nigeria’s digital economy.
Ultimately, Nigeria’s data story is not just about consumption—it’s about resilience, adaptation, and the continued demand for connectivity in a rapidly changing world. The first quarter of 2025 has shown that while price hikes can temporarily slow momentum, the nation’s digital pulse remains strong.
