…Streaming slows as citizens cut back on internet
The 50 percent tariff hike approved in January 2025 doubled Nigerians’ expenditure on data, raising it to N585.08 billion in March 2025 from N287.77 billion in January.
Nigerians’ data expenditure jumped by 103.3 percent in just two months, according to the March data provided by the Nigerian Communications Commission (NCC).
However, citizens scaled back on streaming as rising telecom costs hit hard.
According to BusinessDay analysis, the average cost of 1GB of data rose from N287.50 to N587.50 after the tariff hike, representing a 104.35 percent increase based on advertised rates from telecom operators.
New data from the NCC show internet usage dropped from a record 1 million terabytes (TB) in January to 893,054.80 TB in February, before climbing back up to 995,876.10 TB in March.
But internet usage typically falls in February compared to January figures, as observed in both 2023 and 2024. However, March usage has historically exceeded January levels.
About 58 million people, or 29 percent of the population, are active internet users, according to the GSMA, the global telecom body. The country recorded 141.54 million mobile internet subscriptions in March 2025.
The GSMA data show that 85 percent of Nigerians on the mobile internet use it to make or receive video calls, 75 percent use it to watch free-to-access online videos, and 54 percent use it to listen to free music online.
The growth has largely been powered by increased smartphone adoption and demand for video content. “Streaming is driving internet usage in the country,” said Adeolu Ogunbanjo, president of the National Association of Telecoms Subscribers (NATCOMS).
Read also: Rising data costs may ambush Nigeria’s content creation boom
Platforms like YouTube, Spotify, Netflix, Showmax, and Boomplay dominate Nigeria’s streaming scene. The country recently ranked among the top nations on Spotify’s daily streaming charts.
YouTube also reported a 50 percent year-on-year growth in watch time in Nigeria last year. Relatively cheap data costs have played a crucial role, according to Ogunbanjo.
However, costs have since risen. On January 20, 2025, the NCC approved a long-awaited 50 percent increase in the cost of calls, data, and SMS. The average cost of 1GB of data rose from N287.50 to N431.25. However, advertised rates place the average cost of 1GB at N587.50.
“I am paying over 60 percent more for data, and I have never been more frustrated with my internet connection,” said Percy Ani, a freelance writer.
“I spent N36,000 on data in April. I used to spend N18,000 before February,” added Feyi Omotayo, another subscriber.
Ogunbanjo of NATCOMS noted that the hike has imposed ‘untold hardship’ on many Nigerians already grappling with double-digit inflation. According to the National Bureau of Statistics (NBS), telecom services account for six percent of household spending, more than the five percent spent on rent or fuel.
Bismarck Rewane, chief executive officer of Financial Derivatives Company, noted that while the hike benefits operators financially, it burdens consumers and could “result in reduced usage from consumers.”
Defending the increase, the NCC said telecom tariffs had remained unchanged since 2013, despite rising operating costs.
“Tariff rates have remained static since 2013. The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs,” the regulator said.
Read also: Outrage over MTN’s data price hike
Investments rising
Since the hike, operators have begun scaling up network investments. According to an industry source, “Glo has cleared new equipment at the Customs, and Airtel and MTN are placing large orders for network upgrades. These investments are worth millions of dollars.”
Aminu Maida, executive vice chairman of the NCC, recently disclosed that operators plan to invest N1.59 trillion ($1 billion) in network expansion this year, more than double the amount spent in 2023.
MTN, Nigeria’s largest operator with 90.49 million subscribers, increased its core capex spend by 159 percent to N202.4 billion y-o-y in Q1.
“During the quarter, we received regulatory approval for price adjustments, a critical enabler to sustain ongoing investment in the industry and maintain the quality of service for our customers. This has empowered us to accelerate network investments,” said Karl Toriola, MTN Nigeria’s chief executive officer.
Tony Emoekpere, president of the Association of Telecommunications Companies of Nigeria (ATCON), added, “Investments are beginning to pick up.”
Despite the temporary dip in data usage, MTN posted a record N529.44 billion in data revenue in the first quarter (Q1) of 2025. Toriola of MTN noted that data consumption will normalise over time. “We anticipate continued momentum in service revenue, underpinned by strong demand for data and proactive customer value management.”
Improved service quality needed
But Ogunbanjo of NATCOMS stressed that only improved service quality would justify the price hike. “Nigerians are still complaining because the poor services have persisted,” he said.
Emoekpere of ATCON acknowledged the frustration, noting that infrastructure upgrades take time, especially in a sector where investment has long stalled.
