Nigeria’s Internet Subscribers decline amid Tariff increase

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Nigeria’s internet data consumption has declined by 17,647 terabytes between January and April 2025, following a significant tariff increase implemented by telecom operators. According to the Nigerian Communications Commission, total internet usage dropped from 1,000,930.60 terabytes in January to 983,283.43 terabytes in April, representing a 1.76% decrease.

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A breakdown of the data shows a sharp drop in usage immediately after the tariff was introduced in February, with a 10.8% decline from January’s figure. Although there was a rebound in March, usage dropped again in April, highlighting the persistent strain on consumer affordability.

The total number of internet subscribers also fell during the same period, with a net loss of 176,202 subscribers. Mobile GSM subscriptions saw a modest reduction, while fixed wired subscriptions increased slightly. VoIP subscriptions grew steadily, but wired and wireless ISPs maintained a flat figure.

The decline in internet usage and subscribers has been attributed to the tariff hike, as well as disconnections of SIM cards not linked to the National Identification Number. Furthermore, Nigerians are expected to face increased costs for telecom services after the President’s approval of the Nigeria Tax Bill 2024, which reintroduces a 5% excise duty on telecom services.

The telecom industry has expressed serious reservations about the excise duty, citing the already high operational costs and potential strain on the sector. According to the Association of Licensed Telecom Operators of Nigeria, operators already pay 54 different taxes, including VAT, spectrum fees, and various levies.

MTN Nigeria’s recent financial report showed a strong performance, with a N133.7bn profit after tax in Q1 2025. The company’s data revenue overtook voice earnings, rising to N529.4bn, a 51.5% increase from Q1 2024.

As Mark Smithson, a telecom expert, would say, “The reintroduction of the excise duty will place further strain on the sector, potentially stifling recovery efforts in an industry only just beginning to bounce back from the effects of currency devaluation and inflation.”

However, it’s worth noting that some telecom operators have attributed their strong performance to rising data demand and strategic investments. As the industry continues to evolve, it’s essential to monitor the impact of the tariff hike and excise duty on consumers and operators alike.

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