On June 4, 2025, the Nigerian Communications Commission reported a significant decline in internet data consumption in Nigeria, falling by 17,647 terabytes from 1,000,930.60 terabytes in January to 983,283.43 terabytes in April, a 2% decrease over three months. This downturn, detailed in NCC’s industry statistics, follows a 50% tariff hike on voice, data, and SMS services implemented in February, 2025, which raised the average cost of 1GB of data from $0.18 to $0.27. The price surge, driven by 23.71% inflation, naira devaluation, and rising energy costs, has strained affordability, reducing internet subscribers by 176,204 to 141,985,985 by April from 142,162,159 in January.
The sharpest decline occurred in February, with usage plummeting 10.8% to 893,054.80 terabytes and subscribers dropping by 911,296 to 141,250,863, reflecting immediate consumer backlash to the tariff hike. March saw a partial recovery, with usage rebounding to 995,876.10 terabytes and subscribers to 142,053,537, suggesting temporary adjustments in spending habits. However, April’s further drop by 12,592.67 terabytes and 68,330 subscribers indicates persistent economic pressure. Mobile GSM subscriptions, comprising 99.7% of users, dipped slightly from 141.65 million to 141.47 million, while fixed wired subscriptions grew from 14,053 to 17,175, and VoIP rose from 206,067 to 210,959. ISP subscriptions remained static at 285,702.
Year-on-year, April 2025 usage rose 28.2% from 766,708.12 terabytes in April 2024, but subscribers fell 13.7% from 164,555.88 million, a 22.57 million loss, largely due to SIM deactivations unlinked to National Identification Numbers (NINs) and a 2024 industry audit. The NCC’s data underscores the tariff’s impact, with posts on X like @MobilePunch noting the 17,647TB decline and @imminent_news reflecting consumer frustration. The reintroduction of a 5% excise duty on telecom services, approved in the Nigeria Tax Bill 2024 on May 8, 2025, threatens further cost increases, drawing criticism from the Association of Licensed Telecom Operators (ALTON), which cites 54 existing taxes. @firstladyship on X highlighted MTN’s 15GB data plan rising to N6,000, amplifying public discontent.
Telecom operators, however, reported financial gains. MTN Nigeria posted a $83.2 million profit in Q1 2025, reversing a $244.5 million loss in 2024, with data revenue surging 51.5% to N529.4 billion ($335 million), overtaking voice at N407 billion ($258 million). Data traffic grew 46.4%, and average usage per subscriber rose 29.5% to 12.7GB, per MTN’s Q1 report. Airtel Nigeria’s data revenue reached $38 million, up 45%, per @Dataphyte. Despite these gains, ALTON warns that the excise duty could undermine digital inclusion, with broadband penetration at 48.15%, far below the NCC’s 70% 2025 target. @TechCabal noted 2.5 million new broadband users from December 2024 to January 2025, but affordability remains a barrier.
The tariff hike’s ripple effects challenge Nigeria’s digital economy. With 141.5 million mobile subscriptions and telecoms contributing 16.8% to GDP in Q2 2024, per NCC, reduced access could stifle growth. The NCC reported 89 outages from January to March 2025, 70% from fibre vandalism, further disrupting connectivity. Analysts, including Adeolu Ogunbanjo of NATCOMS, urge tariff reviews, citing “untold hardship” for consumers, per BusinessDay. The CBN’s tight monetary policy, with a 27.5% rate, and naira volatility—projected to weaken 6% by mid-2026 per AfDB—compound pressures. Ghana’s cedi’s 50% gain in 2025 highlights regional policy contrasts, suggesting Nigeria could explore subsidies to bolster digital access. Without intervention, Nigeria’s digital inclusion goals and economic resilience may falter, risking over $1 billion in annual telecom revenue.
