Tariff Hikes Trigger Sharp Decline in Internet Usage and Subscribers in Nigeria
Internet data consumption in Nigeria fell sharply by 17,647 terabytes from January to April 2025, following a 50% tariff increase imposed by the Nigerian Communications Commission (NCC) in February. This raised the average cost of 1GB data from ₦287.50 to ₦431.25, causing immediate reductions in usage and subscriber numbers as many consumers struggled with higher costs amid inflation and energy price surges.
Data usage dropped most significantly in February, falling 10.8% compared to January, before partially rebounding in March. However, the decline resumed in April, underscoring ongoing affordability challenges. The total number of internet subscribers also decreased by over 176,000 in the first four months of 2025, with mobile GSM users—the majority of internet consumers—showing a modest decline, while fixed broadband and VoIP subscriptions saw slight growth.
Year-on-year comparisons reveal a more dramatic subscriber decline, with 13.7% fewer users in April 2025 compared to the same month in 2024. This reduction has been linked to the disconnection of SIM cards not tied to the National Identification Number and a comprehensive industry audit, highlighting regulatory impacts on subscriber numbers alongside economic pressures.
Further compounding consumer costs, the Nigerian Senate recently passed a tax bill reinstating a 5% excise duty on telecom services, expected to raise prices for calls, texts, and data. Telecom operators warn this move will burden users, stifle digital inclusion efforts, and hamper sector recovery already strained by multiple taxes and inflation-driven operational costs.
Despite these challenges, MTN Nigeria reported a strong financial turnaround in Q1 2025, posting a ₦133.7 billion profit after tax driven by rising data revenue that surpassed voice earnings for the first time. The company’s growth in data consumption and smartphone penetration underscores a persistent consumer demand for internet services, even amid tariff hikes and economic headwinds.
Source: Punch