Nigeria’s telecommunications sector is experiencing a regarding contradiction: cell community operators (MNOs) are having fun with unprecedented information income progress, however the rising price of smartphones is stalling web adoption, threatening to widen the digital divide throughout the nation.
Regardless of a surge in information consumption by current customers, Nigeria’s total web subscriptions declined by over a million within the first half of 2025. Figures from the Nigerian Communications Fee (NCC) present whole lively web subscriptions fell from 141.6 million in January to 140.6 million by June.
The drop in web customers displays telcos’ mounting problem to maintain subscriber progress amid financial pressures, system affordability points, and regulatory bottlenecks. MTN Nigeria continues to dominate the sector with 76.5 million web subscribers as of June 2025, trailed by Airtel (49.4 million), Globacom (13.7 million), and 9mobile (1.08 million).
But, even with MTN’s information revenues hovering by 69.2% year-on-year and Airtel’s lively information person base climbing to 29.3 million, the nationwide web person base contracted barely in a interval the place digital enlargement ought to be accelerating.
Smartphones are additionally turning into unaffordable for tens of millions of Nigerians. Entry-level fashions just like the Itel S24, Infinix Sizzling 50i, and Xiaomi Redmi A5, which retailed between ₦120,000 and ₦180,000 initially of the yr, are actually priced between ₦200,000 and ₦220,000. Mid-range gadgets resembling Samsung’s Galaxy A-series breached the ₦400,000 mark, whereas high-end smartphones like Apple’s iPhone 15 Professional Max 1TB crossed ₦2.3 million.
Naira devaluation, inflationary pressures, and international provide chain disruptions have inflated system costs by 25% inside six months. Even the secondhand market has not been spared; older iPhones like iPhone 7 Plus and iPhone 8 (customary), as soon as inexpensive options, now promote for ₦130,000–₦170,000, pricing out lower-income shoppers who as soon as relied on used gadgets to entry digital companies.
Smartphone gross sales volumes declined by 7% between January and June 2025, in response to Market intelligence from Canalys.
Knowledge tariffs amplify digital exclusion
When the NCC accredited a 50% information tariff hike in January 2025, the price of 1GB of information jumped from ₦287.50 to ₦431.25, with higher-volume bundles witnessing even steeper will increase.
The influence was fast and pronounced. Web subscription progress stalled, and by February, the trade recorded a internet lack of practically a million lively web customers. Whereas a modest rebound occurred in March, sustained excessive information costs compelled many subscribers to downscale or droop their web utilization altogether. By June, new activations had slowed to a crawl.
Month-on-month subscription patterns reveal a stark shift in person conduct: information consumption turned extra cautious and need-driven. Many subscribers started rationing information for important duties solely, curbing discretionary utilization. Whereas current smartphone house owners elevated their common information consumption, the upper tariffs created an entry barrier for potential new customers, additional tightening the addressable market.
Progress regardless of coverage hiccups
In June, the Nationwide Id Administration Fee (NIMC) suspended Nationwide Identification Quantity (NIN) verifications emigrate to a brand new authentication platform. This halted new SIM activations throughout all networks, successfully freezing the onboarding of latest web subscribers, regardless of a robust demand for connectivity.
Regardless of these coverage hiccups, telcos are witnessing elevated information utilization amongst their current subscriber base. MTN Nigeria’s smartphone penetration rose to 62.6% in H1 2025 (up from 58.3% in December 2024), equating to roughly 53 million smartphone customers. The corporate added 3.3 million lively information subscribers inside six months, driving its 69.2% year-on-year information income progress.
Airtel Nigeria mirrored related patterns. With a smartphone penetration fee of 51.4%, about 27.5 million of its 53.6 million subscribers are smartphone customers. Airtel’s information person base expanded to 29.3 million in Q2 2025, with common month-to-month information consumption rising from 7.3GB in Q2 2024 to 9.3GB a yr later.
Knowledge consumption per person is climbing sharply. Nevertheless, this masks a extra troubling dynamic. The pipeline for onboarding new web customers is thinning. Low-income Nigerians are being priced out of digital inclusion, elevating issues in regards to the long-term sustainability of the sector’s progress trajectory.
Mark your calendars! Moonshot by TechCabal is again in Lagos on October 15–16! Be a part of Africa’s high founders, creatives & tech leaders for two days of keynotes, mixers & future-forward concepts. Early hen tickets now 20% off—don’t snooze! moonshot.techcabal.com
Elevate your perspective with NextTech Information, the place innovation meets perception.
Uncover the newest breakthroughs, get unique updates, and join with a world community of future-focused thinkers.
Unlock tomorrow’s developments in the present day: learn extra, subscribe to our publication, and turn out to be a part of the NextTech neighborhood at NextTech-news.com
