Higher Tariff Forces Many Nigerians To Reduce Data Usage

Many Nigerians appear to have scaled back their internet usage following a steep 50 per cent hike in telecom tariffs approved by the Nigerian Communications Commission (NCC) in January 2025, new data has shown.

Figures from the NCC indicate that internet consumption dropped from a record 1 million terabytes (TB) in January to 893,054.80 TB in February, a significant decline that coincided with the implementation of the new pricing regime. Although data usage picked up again in March to 995,876.10 TB, it still fell short of January’s total.

The tariff increase, which took effect on January 20, raised the floor price for several services. The cost of voice calls jumped from ₦6.40 to ₦9.60 per minute, SMS from ₦4 to ₦6, and 1GB of data from ₦287.50 to ₦431.25.

It marked the first major adjustment in telecom pricing in over a decade, as operators had long argued that rising inflation, forex shortages, and energy costs were eroding their margins.

While the dip in February could be partially attributed to typical seasonal trends, data usage also declined in February of both 2023 and 2024, analysts say the size of the drop this year points to a deeper consumer response to rising costs.

IT Expert, Jide Awe said, “Consumers are very sensitive to price changes in data and telecom services. A 50 per cent increase in such a short time will likely prompt a behavioural shift, especially among low- and middle-income users who form the bulk of the market.”

Despite the decline in usage, the tariff increase has proven lucrative for operators. MTN Nigeria, the country’s largest telecom provider with 90.49 million subscribers, reported a record ₦529.44 billion in data revenue for the first quarter of 2025.

“Looking ahead, we anticipate continued momentum in service revenue, underpinned by strong demand for data and a proactive approach to customer value management,” said Karl Toriola, Chief Executive Officer of MTN Nigeria.

He added that the price adjustment is expected to further bolster revenue in the coming quarters.

Meanwhile, mobile subscriptions continued to grow. Total active mobile lines rose to 172.43 million in Q1 2025, while mobile internet subscriptions reached 142.05 million. Broadband penetration also increased to 47.73 per cent, signaling continued expansion of digital infrastructure—even as cost pressures test user engagement.

The coming months may determine whether Nigerians adapt to the higher telecom rates or begin cutting back further. For now, the data suggests that while telecom companies are seeing financial gains, many everyday users are making tough choices about how they connect.