Internet user count in Nigeria decreases by a million within half a year, despite the growth in telecommunications sector
In the first half of 2025, Nigeria's internet subscriptions took a dip, with over one million users losing their connection. This contraction in the nationwide internet user base comes amidst a surge in smartphone prices and a 50% increase in mobile data tariffs.
The mobile network operators (MNOs) like MTN Nigeria and Airtel Nigeria are witnessing a shift in user behaviour, with existing subscribers consuming more data, but the pipeline for onboarding new internet users is thinning. This is due to the rising cost of smartphones, which has made devices unaffordable for many low-income Nigerians.
Entry-level smartphones like Itel S24, Infinix Hot 50i, and Xiaomi Redmi A5, which retailed between ₦120,000 and ₦180,000 at the start of the year, are now priced between ₦200,000 and ₦220,000. This price inflation, combined with a 50% increase in mobile data tariffs, has priced out new users from coming online.
The Nigerian Communications Commission (NCC) approved the data tariff hike in January 2025, causing the cost of 1GB of data to jump from ₦287.50 to ₦431.25. Meanwhile, the sharp rise in smartphone prices is driven by naira devaluation, inflation, and global supply chain disruptions, causing a 25% price increase in six months. Even secondhand smartphones like older iPhones now cost over ₦130,000, limiting access for price-sensitive consumers who previously relied on used devices for internet access.
Despite these challenges, MNOs are experiencing growth in data revenue. For instance, MTN's data revenue rose 69.2% year-on-year. However, this growth is coming primarily from existing users, as new user growth has stalled. Total active internet users declined from 141.6 million to 140.6 million from January to June 2025.
Policy disruptions, such as the temporary suspension of National Identification Number (NIN) verifications, have also exacerbated the slowdown in internet adoption. In June 2025, this suspension halted new SIM activations across all networks.
In summary, while MNOs are benefiting from increased data consumption by existing users, the affordability crisis in smartphones and data pricing is preventing many Nigerians from adopting mobile internet. This stalls the overall growth in internet subscriptions despite telcos’ revenue gains.
The rising cost of smartphones and the increase in mobile data tariffs have deterred potential internet users from coming online, contributing to a decline in total active internet users. Moreover, the high prices of even secondhand devices have further limited access for price-sensitive consumers, thereby impeding the growth of internet subscriptions.
