Nigerians Slash Internet Usage After Telecom Tariff Surge: A Digital Recession?

In early 2025, Nigeria’s digital landscape was shaken by a 50% hike in tariffs across voice, data, and SMS services, sending shockwaves through user behavior and service demand. What followed was a sharp and immediate dip in internet usage, unveiling just how vulnerable digital consumption is to economic shocks. While mobile subscriber numbers paradoxically continued to grow, Nigerians increasingly became cautious in their data use, adjusting their digital routines to accommodate the financial strain.

The Nigerian Communications Commission (NCC) has revealed new statistics that outline the delicate balance between economic policy, consumer habits, and market competition in the telecom sector. As dominant players like MTN and Airtel retained large market shares, smaller competitors like 9mobile faced even steeper declines.

This event offers a closer look into how inflationary policies can directly influence digital access and the broader implications this has for a country aiming to expand its digital economy.

Nigerians Retreat Online After 50% Telecom Tariff Increase: What the Numbers Reveal

In January 2025, Nigerian telecom operators implemented a steep 50% increase in tariffs for voice, data, and SMS services.
The immediate result was a significant reduction in internet usage, according to NCC reports.
Internet subscribers dropped by nearly 910,000 in February, down from 142.16 million to 141.25 million.
March saw a mild recovery, with numbers bouncing back slightly to 142.05 million—still shy of the January figures.
Data consumption plummeted by 12% in February, dipping from a record 1 exabyte in January to 893.06 petabytes.
A partial rebound in March lifted consumption by 11.5%, reaching 995.88 petabytes, though still below January’s peak.
Despite the decline in internet activity, the number of active mobile lines grew from 169.32 million to 172.71 million.
This translated into a rise in teledensity from 78.10% to 79.67%, showing growth in user base despite lower consumption.
MTN Nigeria held its lead with 75.62 million internet users and 90.5 million active phone lines (52.48% market share).
Airtel followed with 48.8 million internet users and 58.3 million active lines (33.78%).
Globacom had 15.37 million internet users and 20.7 million active lines (12%), while 9mobile trailed with 1.75 million internet users and 2.9 million active lines (1.72%).
9mobile saw a continued decline, losing 5809 customers through porting in just two months.
In comparison, MTN lost 647, Airtel 695, and Globacom 771 users via porting.
On the gain side, MTN led again, receiving 4855 new users, followed by Airtel with 2084, and Globacom with 1007.
9mobile, meanwhile, gained only three new subscribers through incoming porting—a stark contrast to its losses.
In total, 7922 users switched networks between February and March, signaling rising competition and customer dissatisfaction.
The figures highlight the dual pressures facing the telecom sector: managing economic inflation while retaining user engagement.
Data patterns suggest that Nigerians are carefully rationing their usage, opting for value and reliability.
The NCC’s report underscores how pricing strategies can deeply influence digital inclusion and telecom loyalty.

What Undercode Say:

The 50% telecom tariff hike in Nigeria serves as a critical case study in the intersection of economic strain and digital behavior. What stands out is the immediacy of user reaction—within a month, nearly a million internet subscribers either paused or reduced usage. This is not just a temporary blip; it reflects a deeper economic sensitivity within the Nigerian digital ecosystem. Data consumption dropped drastically, revealing that Nigerians were not just using less internet—they were actively restructuring their online routines, likely prioritizing essential tasks over leisure or extended browsing.

Despite this, the growth in mobile subscriptions suggests a contradictory but important trend: digital connectivity remains crucial. New users are still coming online, either due to migration from feature phones to smartphones, or new market entries. But their behavior is tempered, shaped by cost consciousness.

MTN’s dominance shows the power of brand reliability during times of economic stress. Users are far less likely to take risks with newer or less stable networks when costs rise sharply. Conversely, 9mobile’s struggle to retain and attract users reflects how damaging low market confidence can be, especially when paired with service inconsistencies or limited coverage.

The surge in porting to more reliable networks also tells a deeper story of consumer expectation. Nigerian users are not just price-sensitive—they’re also performance-driven. When costs go up, they expect proportional quality improvements. If not, they move.

The sector’s resilience, shown in the growing number of active lines, should not mask the ongoing stress many consumers face. If such tariff increases continue without parallel gains in service quality or government intervention to support affordability, the digital divide may deepen.

Another long-term implication lies in digital entrepreneurship and education. As data becomes more expensive, small businesses relying on social media marketing, e-learning, and online sales may be forced to scale back. This slows the momentum of Nigeria’s digital economy, especially in underserved areas.

The 2025 tariff hike should serve as a warning: infrastructure development, cost regulation, and user education must evolve hand-in-hand. Tariff increases might be necessary for network sustainability, but without a transparent, staggered rollout or social support mechanisms, they can alienate users and stall progress.

The growth in teledensity is promising, but it needs to be matched with affordable, high-quality internet if Nigeria hopes to maintain its trajectory toward a connected future. With over 140 million internet users, even minor fluctuations have massive socio-economic impacts.

If the trend continues, policymakers and telecom providers alike must invest in digital literacy, transparent billing, flexible data packages, and community-based connectivity projects to soften the blow of necessary price adjustments.

Fact Checker Results:

NCC data confirms a sharp fall in internet users and data consumption in February 2025.
MTN and Airtel continue to dominate market share, while 9mobile faces persistent decline.
Porting statistics validate user dissatisfaction and migration patterns between networks.

Prediction:

If economic inflation continues and telecom tariffs remain high, Nigeria could see a continued slowdown in internet usage growth despite increasing subscriber numbers. Telecom companies that prioritize affordable data bundles and quality service will gain market share, while underperforming operators like 9mobile risk further erosion. Expect innovation in micro-data packages, flexible subscriptions, and possibly government-backed digital subsidy programs within the next year.