Internet use per Nigerian up 30% despite tariff hike

After the Nigerian Communications Commission (NCC) increased tariff prices in January 2025, Eniola Ogunleye’s data spending pattern was disrupted. For the next two months, she did not have a fixed data plan as she searched for affordable options.

“Data cost jumped in February, and I had to revert to weekly data plans because the monthly plans weren’t working for me. I was spending more, but the options were limited. I eventually found a plan for over 100GB at N18,000/month in April, and I have been using it since then,” she said.

Ogunleye’s experience is not unique, as many Nigerians have seen their data usage surge in recent months. “I use more data now, and I don’t even know how,” said Iye Akinbode. This rising usage has resulted in a 30.91 percent year-on-year increase in average data consumption per subscriber, reaching 9.86GB in May 2025 from 7.37GB in May 2024.

According to new data from the NCC, internet usage in the country hit a new all-time high of 1,043,431.98 terabytes (TB) in May 2025, up from 771,993.56 TB in May 2024. Total internet subscriptions in the country stood at 141.57 million in May 2025, compared to 137.12 million in the same period of 2024.

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This growth is despite a 50 percent tariff hike approved by the NCC in January, which raised the floor price for calls from N6.40 to N9.60 per minute, SMS from N4 to N6, and 1GB of data from N287.50 to N431.25.

At the time, Bismarck Rewane, CEO of Financial Derivatives Company, warned that the increase could strain consumer budgets and reduce usage. But recent data indicate otherwise, showing an increase in the consumption of digital services.

According to Karl Toriola, MTN Nigeria CEO, the surge is driven by increased consumption of digital services. “We are positioning ourselves to capture the opportunities of growth for the next 10 years,” he said. “The demand for data in Nigeria is exceptional and will continue to grow.”

One major factor driving this growth is deepening smartphone penetration in the country. By May 2025, 3G, 4G, and 5G connections accounted for 61.24 percent of the 172.67 million mobile connections, up from 55.14 percent of 172.14 million a year earlier.

GSMA, a global platform for telecom servie providers, said that smartphone penetration reached 59 percent in urban areas and 26 percent in rural areas as of 2023. Ericsson attributed this to the region’s young population and increased access to affordable smartphones.

“Smartphone adoption continues to accelerate,” Ericsson said in its Mobility Report. “Subscriptions are projected to rise to 890 million in 2030. Around 40 percent of these are expected to be 5G, reflecting growing consumer demand and an evolving mobile ecosystem.”

This expanding base is fuelling growth in digital services, social media usage, and especially streaming. GSMA reported that 85 percent of Nigerians use mobile internet for video calls, 75 percent for watching free online videos, and 54 percent for listening to free music.

“Social media and streaming content have been crucial,” emphasised Toriola. Streaming, especially on YouTube, is driving much of the demand.

“More Nigerians are watching Nollywood movies on YouTube,” said Adetutu Laditan, former senior product marketing manager for Sub-Saharan Africa at YouTube. YouTube reported a more than 50 percent increase in watch time in Nigeria between May 2023 and May 2024.

“People have found their data level,” said one telecom executive. “People cannot do without data today.”

According to Yahaya Ibrahim, chief technical officer at MTN Nigeria, the country is still far from reaching its data peak.

“We are just getting started. Nigeria has one of the largest youth populations in the world — a population that is digital-native, mobile-first, and increasingly online. Broadband penetration still has room to grow. Smartphone penetration is also increasing,” he said.

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He added that demand is growing not just in urban centres but also in secondary towns and rural areas. “With the continued rollout of Fixed Wireless Access (FWA) and the expansion of 4G and 5G, demand will keep rising. And with more immersive applications like online gaming, e-learning, telemedicine, and streaming, data use is only going up,” he added.

Despite this growth, broadband penetration, which refers to high-speed internet access, remains below 50 percent, and the digital divide between urban and rural areas is wide. Internet speeds and quality are inconsistent, and the rising cost of smartphones continues to limit access for many.

Only 23 percent of rural Nigerians were using the internet as of 2022, according to the International Telecommunication Union (ITU). Around 20 million Nigerians still lack access to telecom services, with infrastructure gaps worsening the situation. The country needs an additional 95,000 km of fibre optic cables to reach universal access, and the government is currently seeking $2 billion in funding to address the deficit.

Expanding internet access presents an opportunity for economic growth, added Andrew Dabalen, World Bank chief economist for Africa.