In early 2024, the Nigerian Communications Commission (NCC) approved a 50% increase in telecom tariffs, a move that has since led to a notable dip in internet data usage across the country. While mobile subscriptions continue to climb, a growing number of Nigerians are reportedly scaling back their internet consumption due to cost pressures, raising concerns over digital access and affordability.

Internet Consumption Drops Amid Soaring Tariffs

According to the NCC’s Q1 2024 industry report, internet data usage dipped slightly by 2.5% in the first quarter of the year. Analysts link this decline to the tariff adjustment introduced in January, which was implemented by major network operators such as MTN Nigeria, Airtel, Glo, and 9mobile. The operators cited rising operational costs, forex instability, and the high cost of diesel as reasons for the price hike.

“The tariff hike was inevitable to ensure continued service delivery, but we are beginning to see the socioeconomic impact on end users,” said telecom analyst Tunde Akintola in an interview with The Cable.

Mobile Subscriptions Still Climbing

Despite the decline in data consumption, mobile network subscriptions rose by over 1.2 million between January and March 2024, bringing Nigeria’s total active mobile lines to over 224 million, per NCC statistics.

This paradox—more subscribers, but less data use—reflects a growing digital divide, where new users are connecting to mobile networks but avoiding heavy data consumption due to affordability issues.

Many Nigerians are now limiting internet usage to essential communication services like WhatsApp and email, avoiding streaming, gaming, and other data-heavy activities. Others have reported switching to public Wi-Fi zones or community networks to reduce personal expenses.

Who Is Affected Most?

The tariff hike has disproportionately affected:

• Students and low-income earners, who rely heavily on cheap data for education and job opportunities.

• Small business owners, especially in the informal sector, who use mobile data for marketing and customer engagement.

• Remote workers and freelancers, whose operations depend on stable and affordable internet access.

The Civil Society Legislative Advocacy Centre (CISLAC) warned that increasing data costs could threaten Nigeria’s ambition of becoming a digitally inclusive economy.

“Affordable internet is not a luxury—it’s a necessity in today’s global economy,” said Auwal Musa Rafsanjani, Executive Director of CISLAC. “If access becomes too costly, it deepens the inequality already facing millions of Nigerians.”

The Bigger Picture: Nigeria’s Digital Economy in Focus

Nigeria’s digital economy is central to its long-term economic diversification plan. The National Broadband Plan 2020–2025 aims to achieve 70% broadband penetration by 2025, with a focus on affordability and coverage. But with this tariff hike, analysts worry that goal may become harder to reach unless new affordability strategies are implemented.

Digital experts are now calling on the government to:

• Subsidize telecom infrastructure in rural and underserved areas.

• Stabilize the naira to reduce import costs for telecom equipment.

• Introduce tiered data plans for low-income earners.

• Explore public-private partnerships to create community data hubs.

Thoughts

Nigeria’s telecom sector remains one of the most dynamic in Africa, but the recent tariff hike reveals the fragile balance between economic survival and digital inclusion. As mobile subscriptions rise, the true test lies in ensuring these connections translate to meaningful internet access that supports education, entrepreneurship, and innovation.

With digital inclusion being key to national development, a multi-stakeholder approach involving regulators, telcos, and civil society will be crucial in navigating this phase.

For more in-depth analysis on Nigeria’s telecom sector, visit Xamblog.com.

Last Updated on May 7, 2025 by kingstar