Despite 50% Tariff Hike, Nigeria’s Internet Usage Surges 30% in 2025

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Despite a steep 50% increase in telecom tariffs earlier in 2025, Nigeria has seen a surprising 30.91% rise in average internet usage per person, according to recent data from the Nigerian Communications Commission (NCC). The average data consumption per subscriber reached 9.86GB in May 2025, up from 7.37GB a year earlier. This growth reflects how deeply embedded internet use has become in the daily lives of Nigerians, with many shifting to larger or more frequent data plans despite the cost burden.

Total data consumption across the country hit a record 1.04 million terabytes in May, with internet subscriptions climbing to 141.57 million. This comes even after the NCC approved tariff increases in January, which raised the cost of 1GB from ₦287.50 to ₦431.25. Telecom operators like MTN have reported growing demand for digital services, indicating that the cost hike has not deterred usage but may have reshaped consumer habits.

One of the key drivers of this digital surge is the expansion of smartphone access. By May 2025, 3G, 4G, and 5G technologies made up over 61% of Nigeria’s 172.67 million mobile connections. Urban smartphone penetration reached 59%, while rural areas lag at 26%, according to GSMA. Increased affordability, Nigeria’s youthful population, and tech-driven lifestyles are fueling digital expansion, with projections estimating 890 million smartphone subscriptions across Sub-Saharan Africa by 2030.

Digital activities such as video streaming, social media engagement, and music consumption are contributing heavily to data usage. YouTube alone saw over a 50% increase in viewership from Nigeria between May 2023 and May 2024, with Nollywood content driving much of that engagement. MTN and other telcos predict the trend will continue with the rollout of fixed wireless access (FWA), improved 5G coverage, and more immersive digital services like e-learning and telemedicine.

However, challenges remain. Broadband penetration is still under 50%, and millions of rural Nigerians lack access to reliable internet services. Infrastructure gaps—like the need for an additional 95,000km of fibre-optic cables—limit progress. The government is seeking $2 billion in funding to bridge these divides. Despite these issues, experts, including World Bank economists, see expanded internet access as a critical pathway to economic growth and inclusion.

Source: Business day

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