Nigeria’s internet traffic declined in February 2025 following the implementation of a 50 percent increase in telecom tariffs, according to the latest data released by the Nigerian Communications Commission (NCC).
While there was a partial recovery in March, total internet consumption for the month remained below January’s record high.
According to NCC statistics, total internet usage fell by 10.7 percent month-on-month from 1,000,000 terabytes (TB) in January to 893,054.80TB in February.
In March, internet consumption rebounded to 995,876.10TB but still fell short of January’s all-time high.
The decline in February follows the NCC’s January 20 approval of a 50 percent upward adjustment in telecom service tariffs, the first such revision in over a decade.
The revised pricing regime raised the floor price for voice calls from ₦6.40 to ₦9.60 per minute, SMS from ₦4 to ₦6 per message and data from ₦287.50 to ₦431.25 per gigabyte.
The decision came after sustained pressure from telecom operators who had cited rising operational costs, currency devaluation and inflationary pressures as factors threatening service quality and financial viability.
Bismarck Rewane, Chief Executive Officer of Financial Derivatives Company, warned at the time that while the new pricing would help operators restore margins, it would likely exert downward pressure on demand.
“The increase improves sector revenues but reduces consumer purchasing power, which may result in a short-term usage decline,” Rewane said.
The NCC data validates that forecast. Although it is typical for February internet consumption to decline seasonally compared to January—as observed in both 2023 and 2024—the margin of decline in 2025 was notably sharper, indicating a likely price sensitivity among consumers.
Despite the volume dip, operators like MTN Nigeria reported strong financial performance. MTN, which leads the Nigerian telecom market with 90.49 million subscribers, posted ₦529.44 billion in data revenue for Q1 2025, a quarterly record.
“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. “The recently approved price adjustments are expected to bolster revenue performance as their full effects materialise in the coming quarters.”
Overall, mobile subscriptions rose to 172.43 million at the end of Q1 while mobile internet subscriptions stood at 142.05 million. Broadband penetration expanded to 47.73 percent.
Although the March data usage recovery suggests some resilience in user demand, analysts note that sustained usage growth will depend on broader macroeconomic conditions, disposable income and operator-led initiatives to drive affordability.
With the full impact of the tariff adjustment expected to reflect in Q2 earnings, attention will turn to whether consumption trends stabilize or remain suppressed in response to higher costs.
