Nigeria’s Internet Usage Declines After 50% Telecom Tariff Hike, Yet MTN Posts Record Data Revenue

Internet usage in Nigeria saw a slight drop following a 50% increase in telecom tariffs approved by the Nigerian Communications Commission (NCC) in January 2025. According to data from the NCC, internet consumption decreased from a peak of 1 million terabytes (TB) in January to 893,054.80 TB in February. Although usage rebounded in March to 995,876.10 TB, it remained below January’s level. The decline in February is typical compared to January figures, with March usually seeing a rise in internet usage.

The tariff hike, which came into effect on January 20, 2025, raised the cost of calls, data, and SMS after a decade of pressure from telecom operators. The cost of calls increased from ₦6.40 to ₦9.6 per minute, SMS rose from ₦4 to ₦6, and the price of 1GB of data increased from ₦287.5 to ₦431.25. Experts, including Bismarck Rewane, CEO of Financial Derivatives Company, had warned that the tariff increase could strain consumers, potentially leading to reduced usage due to higher costs.

Despite the dip in internet usage, MTN Nigeria, the country’s largest telecom operator, reported a record ₦529.44 billion in data revenue for the first quarter of 2025. MTN’s total subscriber base reached 90.49 million, and its optimistic outlook for continued revenue growth emphasizes the strong demand for data services, which is expected to drive future performance as the effects of the tariff hike fully materialize.

Mobile subscriptions overall rose to 172.43 million in Q1 2025, with 142.05 million mobile internet subscriptions. Broadband penetration also increased, reaching 47.73%. This growth highlights the continued demand for mobile services in Nigeria, despite the price adjustments and their potential impact on consumer usage.

Source: Business day