Internet usage in Nigeria dips as tariff cost spikes
The Nigerian telecommunications sector has endured economic challenges, prompting tariff increases and impacting data usage.
Internet utilization fell from January to April 2025, attributed to a 50% hike in data tariffs instituted in February.
Telecommunication companies like MTN Nigeria reported solid revenue growth despite reduced data consumption among citizens.
According to recent data given by the Nigerian Communications Commission, total internet usage decreased from 1,000,930.60 terabytes in January to 983,283.43 terabytes in April, marking a 1.76 percent fall over the three months.
The dip in data usage is a result of the NCC's decision to increase data tariffs by 50%.
Some of the rough estimates show that under the revised pricing, the 1.8GB monthly plan now costs ₦1,500, replacing the previous 1.5GB plan that was priced at ₦1,000.
The 20GB plan has increased to ₦7,500 from ₦5,500, while the 15GB plan now costs ₦6,500, up from ₦4,500. Larger data bundles have seen even steeper increases.
The 90-day 1.5TB plan has jumped from ₦150,000 to ₦240,000, while the 600GB 90-day plan has risen from ₦75,000 to ₦120,000.
These price jumps, since it was implemented back in February, have resulted in less data usage as Nigerians struggle with an economy that has triggered inflationary pressures across multiple sectors.
This dip in usage is also notwithstanding the fact that in April, the top telecommunications company in the country, MTN Nigeria, recorded revenue of N1 trillion in the first quarter of 2025, marking a 40.5% year-on-year increase from the N752.9 billion posted in Q1 2024.
Data analyzed, as seen in the Punch, month-over-month, reveals a dramatic decline in utilization just after the fee was implemented.
The amount of internet usage in February was 893,054.80 terabytes, which was 10.8% less than in January.
March's figures rebounded to 995,876.10 terabytes, while in April, data usage dropped by 12,592.67 terabytes.
Major telecom operators in Nigeria, including MTN, Airtel, and 9Mobile, have long lobbied for price modifications to reflect economic reality.
Despite rising operating expenses caused by inflation, telecom companies have been unable to raise prices for more than a decade.
This, however, has not sat well with the country's general populace as they continue to suffer one of the country's worst economic hits, using the same inflationary concerns the telecom industry alluded to.
By the end of 2024, when the conversations on tariff hikes were heating up, the country's inflation rate had climbed to 32.47%, from the 29.90% levels it began the year with.
At the time, reports indicated that telecommunications operators could face a $11.3 billion revenue loss between 2022 and 2026, resulting from a delay in the tariff hikes, which had persisted for 11 years.
In 2022, telecom firms had demanded a 40% tariff increase.
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