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In Nigeria, everyday life-from football matches and religious gatherings to binge-watching Nollywood films-is increasingly powered by internet data. This digital transformation, coupled with a significant increase in data tariffs, has caused the nation’s monthly data expenditure to skyrocket by over 300%, reaching ₦721.18 billion in July 2025, up from ₦176.87 billion in July 2023.
Take Peter Adebiyi, a fashion business owner, who has completely abandoned traditional cable TV. “I rely solely on my smart TV to stream content,” he shared with TechCabal, highlighting a growing trend where satellite dishes are becoming obsolete.
This surge in digital consumption has led to an 83% increase in data usage over two years, substantially boosting telecom operators’ revenues but also significantly raising the financial burden on Nigerian consumers.
Understanding the Data Consumption Boom
The Nigerian Communications Commission (NCC) reports that streaming video content is a major driver of data usage, with one hour of standard definition video consuming approximately 350 MB, and high definition streaming using up to 1 GB. Consequently, monthly data consumption soared by nearly 84%, from 615,207 terabytes in July 2023 to over 1.13 million terabytes in July 2025.
Breaking Down the Numbers
TechCabal’s analysis reveals that Nigeria’s monthly internet spending climbed to ₦721.18 billion in July 2025, based on an average data cost of ₦637.5 per gigabyte. This is a stark increase from ₦176.87 billion two years prior, when the average price per gigabyte was ₦287.5.
In 2023, the average cost per GB was calculated from telco prices: Airtel charged ₦350, MTN ₦200, Glo ₦300, and 9mobile ₦300, averaging ₦287.5. By July 2025, these rates had nearly doubled or more, with Airtel at ₦800, MTN and 9mobile at ₦500 each, and Glo at ₦750 for 1.1 GB, pushing the average to ₦637.5 per GB.
Meanwhile, average monthly data consumption per subscriber increased from 3.86 GB in July 2023 (with 159.54 million internet subscriptions) to 8.15 GB in July 2025 (with 138.75 million subscriptions), indicating a shift towards heavier data use despite a slight drop in subscriber numbers.
Telecom Giants Reap the Rewards
MTN Nigeria’s data revenue has surged by nearly 380% since 2020, reaching ₦1.59 trillion in 2024 and already hitting ₦1.23 trillion in the first half of 2025. Airtel has also seen a 50% increase in data revenue, generating $654 million by the end of its fiscal year in March 2024.
Data usage per customer has escalated dramatically: Airtel’s average data consumption per user jumped 232% since March 2021 to 9.3 GB by June 2025, while MTN’s grew 53% since December 2023, reaching 13.2 GB per user in the same period.
This growth has propelled Nigeria above the regional average for internet engagement. Approximately 29% of Nigerians are active internet users, with 85% of mobile internet users leveraging the platform for video calls, 75% streaming free online videos, and 54% listening to free music, according to GSMA data.
YouTube’s Dominance in Nigeria’s Streaming Landscape
YouTube has emerged as a dominant platform, not only serving as the preferred streaming medium for many religious broadcasts but also becoming a vital outlet for Nollywood content. As of October 2024, Nigerian YouTube watch time increased by over 55% year-on-year, with more than 2 million viewers accessing the platform via connected TVs at home.
The number of Nigerian YouTube channels earning seven-figure revenues doubled in 2024, underscoring the platform’s growing economic impact.
Nollywood producer Bolaji Ogunmola remarked at a YouTube event, “For many Nigerians, YouTube has replaced traditional television as the primary screen for entertainment.” Tarek Amin, YouTube’s director for the Middle East, Africa, and Turkey, added, “The media landscape is rapidly evolving, and Nigerian creators are leading this transformation.”
Challenges Amidst Growth
Despite the digital boom, rising costs are straining consumers. In January 2025, telecom providers implemented a 50% increase in data tariffs after a decade of stable pricing, citing escalating operational expenses.
Peter Adebiyi noted his monthly data expenses tripled from ₦10,000 to nearly ₦30,000. Similarly, digital marketer Temiloluwa Toluwase’s monthly data spend doubled to at least ₦20,000.
Adeolu Ogunbanjo, president of the National Association of Telecoms Subscribers (NATCOMS), highlighted the hardship caused by these hikes, with many users forced to reduce their data consumption.
GSMA points out that affordability and digital literacy remain significant obstacles to wider internet adoption. Since January 2025, internet subscriptions have declined by 3.41 million, falling to 138.75 million by July.
Complaints about rapid data depletion have surged, with many users blaming telcos for overcharging. The NCC attributes much of this to background app updates and extended screen time.
Freda Bruce-Bennett, NCC’s Director of Consumer Affairs, emphasized the importance of educating subscribers on managing and optimizing their data usage across daily, weekly, or monthly plans.
Infrastructure and Inclusion: The Road Ahead
Despite increased data consumption, broadband penetration remains under 50%. The International Telecommunication Union (ITU) estimated that only 38% of Nigerians had internet access in 2024, significantly below the global average of 68%. Approximately 20 million Nigerians remain offline, according to Bosun Tijani, Minister of Communications, Innovation, and Digital Economy.
Limited internet access restricts participation in digital economies, which are vital for innovation, job creation, and inclusive growth, notes Andrew Dabalen, World Bank Chief Economist for Africa.
To bridge this divide, Nigeria is investing $2 billion to expand its fiber optic network by 90,000 kilometers, aiming to enhance connectivity nationwide.
Looking forward, internet usage is projected to rise, with an estimated 32 million new mobile internet subscribers expected between 2025 and 2030.
MTN Nigeria CEO Karl Toriola summarized the outlook in a January 2025 interview: “We are strategically positioning ourselves to capitalize on the next decade’s growth opportunities. Demand for data in Nigeria is extraordinary and will only intensify.”
While data connectivity is now integral to how Nigerians engage with work, education, worship, and entertainment, escalating costs and infrastructure challenges risk excluding many from the country’s digital future.
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