The amount spent on the internet in 2024 climbed by 34.26 percent to N2.81 trillion from N2.09 trillion in 2023 due to record streaming activity on Netflix, YouTube, and other platforms.
The Nigerian Communications Commission (NCC) has released data showing that overall internet usage increased from 7,272,020.24 terabytes (7,272,020,240 GB) in 2023 to an all-time high of 9,763,595.18 terabytes (9,763,595,180 gigabytes).
An analysis by THE NEWS CHRONICLES shows that the average cost of 1GB is N287.5. The average cost in 2024 was N287.5, with 1GB on Airtel costing N350, N200 on MTN, N300 on Glo, and N300 on 9mobile.
Many were forced to work, learn, and socialize online due to lockdowns and social separation during the COVID-19 epidemic, which increased internet usage. This pattern persisted as monthly internet consumption increased from 125,149.86 TB in December 2019 to 973,455.35 TB in December 2024, a 677.83 percent increase.
The main driver of this ongoing expansion has been the rising demand for digital services. “Streaming is driving this surge,” says Adeolu Ogunbanjo, head of the National Association of Telecom Subscribers (NATCOMS).
Karl Toriola, CEO of MTN Nigeria, emphasized that social media and streaming content have significantly driven data use.
This increased the telco’s average data usage per customer by 31.2 percent to 11.2 GB in the first nine months of 2024, while overall data traffic increased by 42.1 percent.
Nollywood, music, comedy skits, and religious programming are all available on streaming services. A young population fuels it. According to Spotify’s daily streaming data, the nation is among the top countries.
YouTube has also emerged as the preferred streaming service for Nigerians, particularly as Nollywood moved more and more to the platform when financing from streaming behemoths like Netflix and Amazon Prime slowed.
“More people are using the internet and consuming more content. Digital is here to stay, but trends are shifting. “For example, more Nigerians are watching Nollywood films on YouTube,” said Adetutu Laditan, YouTube’s former senior product marketing manager for Sub-Saharan Africa.
According to Airtel Africa, which reported a data use per customer growth of 37.2 percent to 8.4 GB per month from 6.2 GB, increased smartphone penetration has also contributed to this growth. Smartphone penetration has increased from 6.4 percent to 49.5 percent.
According to Airtel’s 2024 full-year report, “customer smartphone data usage reached 11.2 GB per month compared to 8.8 GB per month in the prior period.”
According to GSMA, the global organization for telcos, approximately 29 percent of Nigerians, or 58 million people, use the Internet. Due to the growing adoption of smartphone data consumption, the country remains above the regional average.
According to GSMA, most Nigerians (85%) use mobile internet to make or receive video calls, 75% to view free online videos, and 54% to listen to free music.
Additionally, telcos have benefited from this rise in consumption. MTN Nigeria and Airtel Nigeria announced joint data revenues of N1.63 trillion between January and September 2024, up from N254.32 billion during the same period in 2019.
According to Toriola of MTNN, telcos’ revenue will be driven by the steady increase in data consumption for the next few years. “We are setting ourselves up to take advantage of the growth prospects over the next ten years. Nigeria has a unique data requirement that is only going to increase,“ Toriola remarked.
Despite these advancements, both new and old problems still exist. High-speed internet access, or broadband penetration, is still less than 50%.
However, many people are still hampered by the wide digital divide between urban and rural areas, erratic internet connections, and the high price of cell phones. Additionally, a recent 50% increase in telecom service costs may slightly reduce data usage.