Nigeria is witnessing an unprecedented surge in internet consumption, with monthly usage skyrocketing by more than 501.99 percent since 2019. This remarkable spike is attributed to the burgeoning demand for streaming services and other online activities, primarily accessed through smartphones.
According to data from the Nigerian Communication Commission (NCC), monthly internet usage has soared from 125,149.86 terabytes (TB) in December 2019 to a staggering 753,388.77 TB by March 2024. This surge in consumption has corresponded with a significant increase in the amount spent on internet access, which has surged to N216.59 billion from N35.98 billion. The average price of 1GB of data stands at N287.5, according to an analysis by BusinessDay.
The COVID-19 pandemic played a pivotal role in accelerating internet consumption. Lockdowns and social distancing measures compelled individuals to adapt to virtual work, learning, and socializing, driving a surge in video conferencing, online education, and other internet-based activities.
The International Telecommunication Union (ITU), the United Nations specialized agency for information and communication technologies, reported a global average increase of 30 percent in internet traffic. In its 2020 industry report, the NCC highlighted the significant surge in data usage, directly attributed to the pandemic-induced shift towards virtual engagements.
This paradigm shift, coupled with the vast array of free content available online, has sustained the remarkable increase in internet consumption. Platforms like YouTube have witnessed a surge in Nigerian viewership, with more individuals engaging with diverse content, including Nollywood movies.
Telecom companies like MTN Nigeria have seen a notable shift in consumer behavior, with a growing preference for data services over traditional voice calls. The rise in streaming activities, fueled by platforms like Zoom and YouTube, has become commonplace among Nigerians.
The Nigerian streaming market boasts a rich tapestry of content ranging from Nollywood movies to music, comedy skits, and religious broadcasts. This burgeoning market has attracted investments from global players like Spotify, Netflix, and BoomPlay, contributing to Nigeria’s emergence as a key player in the global streaming landscape.
Despite these strides, challenges remain. Broadband penetration remains below 50 percent, with a significant digital divide between urban and rural areas. Fluctuating internet speeds and high smartphone costs also pose barriers to widespread internet access.
However, expanding internet access presents a significant opportunity for economic growth. The World Bank reports that improved access to internet coverage has contributed to poverty reduction in Nigeria. With the right investments in infrastructure and affordability measures, Nigeria is poised to harness the full potential of its burgeoning digital economy.
