Data Usage Surges Despite Economic Hardships, Internet Users Decline

By Paul Onehi

Nigeria’s data consumption soared to 973,445 terabytes between December 2023 and December 2024, marking a significant increase despite the nation’s economic challenges. This surge translated into substantial revenue for mobile network operators, even as operational costs continued to rise.

As of December 2024, 139.2 million Nigerians actively used the internet, highlighting the nation’s deepening reliance on digital connectivity. However, this figure reflects a sharp decline from 163.8 million users recorded in December 2023—a loss of nearly 25 million users within a year. According to data from the Nigerian Communications Commission (NCC), this drop is largely attributed to the SIM-NIN linkage policy enforcement and telecom operators’ internal data cleanup efforts. Consequently, mobile connections plummeted from 224.7 million to 164.9 million, resulting in a decline in teledensity.

Despite the reduction in internet subscribers, data consumption increased by 36%, jumping from 713,200 terabytes to 973,445 terabytes. This paradox suggests that while fewer people remain connected, those who do are consuming significantly more data—driven by growing engagement in video streaming, online gaming, and remote work.

Furthermore, Nigeria’s telecom landscape is evolving, with 4G technology surpassing 2G usage for the first time, now accounting for 42.7% of internet users. Meanwhile, 5G adoption, though still in its infancy at 2.3%, is showing steady growth, reflecting a rising demand for high-speed internet.

While the rise in data consumption signals digital transformation, industry experts warn that the declining number of internet users threatens Nigeria’s broadband penetration targets. With penetration currently at 44.43%, the goal of 70% broadband coverage by 2025 appears increasingly difficult to achieve.

The struggles of smaller telecom operators also paint a concerning picture. 9mobile’s market share has shrunk to just 1.99%, a drastic drop from 15.7% in 2015. Experts emphasize the need for urgent policy interventions to address these challenges.

While the NCC’s broadband expansion plans remain critical, analysts urge the government to investigate the root causes of declining internet users and implement strategies to enhance digital access and affordability. Addressing these issues is vital to ensuring that Nigeria fully leverages its digital potential and sustains long-term growth in the ICT sector.