Nigeria’s telecommunications sector is experiencing a relating to contradiction: cell group operators (MNOs) are having enjoyable with unprecedented info revenue progress, nevertheless the rising worth of smartphones is stalling net adoption, threatening to widen the digital divide all through the nation.
No matter a surge in info consumption by present clients, Nigeria’s whole net subscriptions declined by over 1,000,000 throughout the first half of 2025. Figures from the Nigerian Communications Payment (NCC) current entire energetic net subscriptions fell from 141.6 million in January to 140.6 million by June.
The drop in net clients shows telcos’ mounting downside to keep up subscriber progress amid monetary pressures, system affordability factors, and regulatory bottlenecks. MTN Nigeria continues to dominate the sector with 76.5 million net subscribers as of June 2025, trailed by Airtel (49.4 million), Globacom (13.7 million), and 9mobile (1.08 million).
However, even with MTN’s info revenues hovering by 69.2% year-on-year and Airtel’s energetic info individual base climbing to 29.3 million, the nationwide net individual base contracted barely in a interval the place digital enlargement must be accelerating.
Smartphones are moreover turning into unaffordable for tens of hundreds of thousands of Nigerians. Entry-level fashions similar to the Itel S24, Infinix Scorching 50i, and Xiaomi Redmi A5, which retailed between ₦120,000 and ₦180,000 initially of the yr, are literally priced between ₦200,000 and ₦220,000. Mid-range devices resembling Samsung’s Galaxy A-series breached the ₦400,000 mark, whereas high-end smartphones like Apple’s iPhone 15 Skilled Max 1TB crossed ₦2.3 million.
Naira devaluation, inflationary pressures, and worldwide present chain disruptions have inflated system prices by 25% inside six months. Even the secondhand market has not been spared; older iPhones like iPhone 7 Plus and iPhone 8 (customary), as quickly as cheap choices, now promote for ₦130,000–₦170,000, pricing out lower-income buyers who as quickly as relied on used devices to entry digital corporations.
Smartphone product sales volumes declined by 7% between January and June 2025, in response to Market intelligence from Canalys.
Information tariffs amplify digital exclusion
When the NCC accredited a 50% info tariff hike in January 2025, the value of 1GB of data jumped from ₦287.50 to ₦431.25, with higher-volume bundles witnessing even steeper will enhance.
The affect was quick and pronounced. Internet subscription progress stalled, and by February, the commerce recorded a web lack of virtually 1,000,000 energetic net clients. Whereas a modest rebound occurred in March, sustained extreme info prices compelled many subscribers to downscale or droop their net utilization altogether. By June, new activations had slowed to a crawl.
Month-on-month subscription patterns reveal a stark shift in individual conduct: info consumption turned additional cautious and need-driven. Many subscribers began rationing info for necessary duties solely, curbing discretionary utilization. Whereas present smartphone homeowners elevated their frequent info consumption, the higher tariffs created an entry barrier for potential new clients, further tightening the addressable market.
Progress no matter protection hiccups
In June, the Nationwide Id Administration Payment (NIMC) suspended Nationwide Identification Amount (NIN) verifications to migrate to a model new authentication platform. This halted new SIM activations all through all networks, efficiently freezing the onboarding of newest net subscribers, no matter a strong demand for connectivity.
No matter these protection hiccups, telcos are witnessing elevated info utilization amongst their present 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 clients. The company added 3.3 million energetic info subscribers inside six months, driving its 69.2% year-on-year info revenue progress.
Airtel Nigeria mirrored associated patterns. With a smartphone penetration price of 51.4%, about 27.5 million of its 53.6 million subscribers are smartphone clients. Airtel’s info individual base expanded to 29.3 million in Q2 2025, with frequent month-to-month info consumption rising from 7.3GB in Q2 2024 to 9.3GB a yr later.
Information consumption per individual is climbing sharply. However, this masks a additional troubling dynamic. The pipeline for onboarding new net clients is thinning. Low-income Nigerians are being priced out of digital inclusion, elevating points regarding the long-term sustainability of the sector’s progress trajectory.
Mark your calendars! Moonshot by TechCabal is once more in Lagos on October 15–16! Be part of Africa’s excessive founders, creatives & tech leaders for 2 days of keynotes, mixers & future-forward ideas. Early hen tickets now 20% off—don’t snooze! moonshot.techcabal.com
Elevate your perspective with NextTech Data, the place innovation meets notion.
Uncover the most recent breakthroughs, get distinctive updates, and be a part of with a world group of future-focused thinkers.
Unlock tomorrow’s developments within the current day: be taught additional, subscribe to our publication, and change into part of the NextTech neighborhood at NextTech-news.com
Keep forward of the curve with NextBusiness 24. Discover extra tales, subscribe to our publication, and be a part of our rising group at nextbusiness24.com
