13 hours Ago By News Ghana
News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.gh/nigerias-internet-milestone-shadowed-by-price-hikes-and-usage-drop/Nigeria’s digital landscape reached a historic high in January 2025 as cumulative internet consumption surpassed 1 million terabytes since tracking began in 2023, marking a pivotal moment in the nation’s tech evolution.
However, this milestone comes amid a stark contradiction: monthly data usage plummeted to 27,475 terabytes in January—a dramatic 71% drop from December 2024’s 94,502 terabytes. Analysts attribute the decline to recent 50% tariff hikes by telecom giants MTN Nigeria and Airtel Nigeria, a move that appears to have dampened consumer appetite for data despite rising connectivity demands.The paradox underscores Nigeria’s fragile balance between affordability and digital growth.
While cumulative figures reflect surging long-term reliance on internet services—driven by streaming, e-commerce, and remote work—the abrupt monthly slump reveals how price sensitivity threatens progress. “The tariff increases are a double-edged sword,” said Lagos-based tech analyst Funke Adebayo. “Operators aim to boost revenue, but inflated costs risk excluding millions from the digital economy, especially in a nation where 40% live below the poverty line.
”Notably, MTN and Airtel defied the usage downturn by adding 1.4 million and 1.08 million subscribers respectively in January, underscoring Nigeria’s insatiable demand for connectivity.
MTN now serves 73.7 million internet users, while Airtel reaches 48.4 million.
Yet critics argue these gains mask deeper issues. “Subscriber growth doesn’t equate to usage,” Adebayo noted. “Many new users may be low-income earners rationing data sparingly, which doesn’t translate to revenue stability for providers.
”Meanwhile, rivals Globacom and 9mobile flounder. Globacom, still reeling from a 2024 regulatory audit that slashed its subscriber base, managed only 313,939 new users in January, while 9mobile stagnated entirely. The disparity highlights a market increasingly dominated by MTN and Airtel, which together control over 80% of Nigeria’s telecom sector.
The tariff hikes, implemented to offset rising operational costs and currency volatility, have sparked public outcry. On social media, users lamented switching to “data austerity,” with many cutting back on video streaming and online learning. “I now download lectures in bulk at night when rates are cheaper,” said university student Chidinma Okoro.
“It’s a step backward for digital inclusion.”Industry experts warn that Nigeria’s path to a robust digital economy hinges on resolving this tension. While the 1 million terabyte milestone signals long-term potential, the sudden usage drop exposes systemic risks—from infrastructure gaps to inflationary pressures.
As the Nigerian Communications Commission (NCC) monitors these trends, the question remains: Can the nation sustain its digital ambitions while keeping the internet accessible to all? For millions of Nigerians, the answer will shape not just their online experience, but their economic future. News Ghana, Latest Updates and Breaking News of Ghana, News Ghana, https://newsghana.com.
gh/nigerias-internet-milestone-shadowed-by-price-hikes-and-usage-drop/.
