Despite 50% Tariff Hike, Internet Usage Hits 1m TB In May

Nigeria’s internet data consumption surged to a new all-time high of 1,043,431.98 terabytes (TB) in May 2025, surpassing the previous record of just over 1 million TB set in January 2025.

This increase signifies the country’s rapidly growing digital economy and increasing reliance on internet connectivity despite the 50 per cent tariff hike imposed on telecom services earlier in the year.

Data from the Nigerian Communications Commission (NCC) show that after a dip in February 2025 to 893,054.80 TB—likely due to the tariff increase—the usage steadily rebounded through March and April, culminating in the record-breaking figure in May.

Available data indicates that data consumption figures then gradually recovered from the February low, reaching 995,876.10 TB in March, dipping slightly to 983,283.43 TB in April before breaking the January level in May.

The tariff hike, which took effect on 20 January 2025, raised the floor price for calls from N6.40 to N9.60 per minute, SMS from N4 to N6, and

N287.50 to N431.25 per gigabyte of data, had initially caused concerns about reduced consumption.

However, demand proved resilient, driven by expanding smartphone adoption and broadband penetration.

By May, 3G, 4G, and 5G connections accounted for 61.24 per cent of Nigeria’s 172.67 million mobile connections, reflecting deepening smartphone penetration. Internet penetration stood at nearly 48.81 per cent, with 141.05 million mobile internet subscribers.

This growth is fueling increased use of digital services, streaming, social media, and video calls across the country.

Telecom operators like MTN Nigeria have benefited from this surge, posting record data revenues despite the tariff hike. MTN’s CEO Karl Toriola highlighted the exceptional and growing demand for data in Nigeria, signaling strong prospects for continued growth in the sector.

At the time, Bismarck Rewane, chief executive officer of Financial Derivatives Company, warned that the hike could strain consumer budgets and lead to lower usage. But recent data indicates otherwise.

Despite the slight dip in the first quarter of 2025, MTN Nigeria, with 90.25 million subscribers, posted a quarterly record of N529.44 billion in data revenue. According to Karl Toriola, MTN Nigeria’s CEO, the telecom industry is well-positioned to benefit from sustained growth in data demand.

“The demand for data in Nigeria is exceptional and will continue to grow,” he said.

According to the GSMA, smartphone penetration stood at 59 per cent in urban areas and 26 percent in rural areas as of 2023. This expanding base is driving growth in digital services, social media usage, and streaming.

GSMA notes that most Nigerians (85 per cent) use mobile internet to make or receive video calls, 75 per cent to watch free-to-access online videos, and 54 per cent to listen to free music online.

Beyond data consumption, the overall number of mobile subscriptions rose to 172.67 million in May, with 141.05 million mobile internet subscribers and broadband penetration hitting 48.81 per cent.