Data Tariff Hike Triggers Drop in Internet Usage Amid Nigeria’s Economic Crunch

(3 Minutes Read)

Recent figures released by the Nigerian Communications Commission (NCC) show that national internet consumption declined from 1,000,930.60 terabytes in January to 983,283.43 terabytes in April 2025—a 1.76% drop over the three months.

This reduction in data usage closely follows the NCC’s approval of a 50% increase in data tariffs, implemented in February. Under the revised pricing, the once ₦1,000 1.5GB monthly plan has been replaced by a ₦1,500 1.8GB plan. Similarly, the 20GB plan now costs ₦7,500 (up from ₦5,500), while the 15GB package has risen to ₦6,500 from ₦4,500. Larger bundles have seen even sharper increases: the 90-day 1.5TB plan surged from ₦150,000 to ₦240,000, and the 600GB quarterly plan jumped from ₦75,000 to ₦120,000.

The timing of this hike coincides with intense economic hardship in Nigeria, driven by soaring inflation across multiple sectors. Though the tariff adjustments reflect the telecommunications industry’s response to rising operational costs—pressures that have built over more than a decade—consumers are finding it harder to keep up.

Notably, MTN Nigeria, the country’s largest telecom provider, reported a revenue of ₦1 trillion in Q1 2025, a 40.5% increase from ₦752.9 billion in Q1 2024. Still, nationwide internet consumption dipped sharply right after the new pricing was introduced. In February, monthly usage fell by 10.8% to 893,054.80 terabytes. While March saw a slight rebound to 995,876.10 terabytes, usage dropped again in April by 12,592.67 terabytes.

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The tariff adjustments were a long time coming. Major telecom players—MTN, Airtel, and 9Mobile—had been advocating for price revisions due to inflationary pressures and a steep devaluation of the naira, which slid from about ₦600 to ₦1,600 per U.S. dollar between 2023 and 2025. These companies warned that without tariff updates, they faced potential revenue losses of up to $11.3 billion between 2022 and 2026. Initially, the industry had called for a 40% tariff increase back in 2022, but mounting costs eventually drove the demand for a 100% hike.

As of late 2024, Nigeria’s inflation rate had climbed to 32.47%, up from 29.90% at the start of the year, further straining household finances and amplifying public resistance to higher telecom costs.