Explainer: Why Nigerians are paying more for less internet

Nigeria’s internet paradox is deepening as rising costs, declining value, and growing pressure affects millions of users who rely on connectivity for their daily life and businesses.

Despite a surge in internet adoption and data consumption, Nigerians are increasingly paying more for internet services while experiencing poorer quality. This is a trend that is raising concerns about the country’s digital growth trajectory.

Recent data from the Nigerian Communications Commission (NCC) reveals that although demand for data has skyrocketed, affordability and service quality remain persistent challenges.

Prices surge amid economic pressures

The cost of internet data in Nigeria has climbed sharply over the past two years, driven by inflation, currency depreciation, and regulatory adjustments.

A 2025 analysis indicates that the average price of 1GB of data rose from about N287.5 in 2023 to roughly N637.5 in 2025, more than doubling within two years. The NCC’s approval of a 50 percent tariff increase in early 2025 further intensified the pressure, pushing the price floor for 1GB above N431.

By early 2026, Nigerians were estimated to be spending about N20.87 billion daily on internet services, with total annual expenditure reaching N7.62 trillion.

For many consumers, the increases have been difficult to absorb.

“I bought data for my mum on Tuesday and it finished within two days,” said Moyinoluwa Azeez, an entrepreneur. “I spend about N20,000 monthly on data, and it doesn’t last. It’s not adding up. I feel like I’m paying more for less.”

Rising costs, declining quality

While prices continue to rise, service quality has not kept pace. Users frequently report slow speeds, unstable connections, and rapid data depletion.

Industry estimates suggest that major telecom providers experience up to 150 fibre cuts daily, disrupting services nationwide. Combined with power shortages and infrastructure gaps, these challenges continue to degrade user experience.

Nigeria remains one of Africa’s largest internet markets, with 148.2 million subscribers and over 68 percent penetration as of December 2025.

Data usage has crossed 1 million terabytes monthly, reflecting growing reliance on digital services.

However, broadband penetration remains just under 52 percent which is well below the government’s 70 percent target thereby highlighting significant infrastructure deficits.

Experts estimate that the country needs an additional 95,000 kilometres of fibre optic cable to achieve near-universal access.

Structural challenges driving costs

Experts say ‘pay more, get less’ reality is rooted in structural inefficiencies rather than simple price increases.

Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), described the recent tariff adjustment as a necessary step toward sustainability.

“For over a decade, telecom tariffs remained largely static despite inflation, exchange rate volatility, and rising operational costs,” Adebayo said. “The adjustment is a modest rebalancing toward cost-reflective pricing and essential to sustain network investment.”

He pointed to several systemic issues affecting service delivery:

Infrastructure vandalism

Frequent fibre cuts and site damage disrupt connectivity and increase repair costs.

Multiple taxation

The chairman of ALTON said overlapping levies from different levels of government raise operating expenses.

Right-of-Way bottlenecks

High and inconsistent charges slow fibre deployment

Energy constraints

Heavy reliance on diesel due to unreliable electricity significantly increases costs

Foreign exchange volatility

Imported telecom equipment becomes more expensive as the naira weakens

Rising demand

Rapid data consumption growth is outpacing infrastructure expansion

“These factors create a situation where costs increase faster than network capacity, leading to congestion and reduced service quality,” Adebayo explained.

Digital divide widens

The rising cost of internet access is also deepening Nigeria’s digital divide.

According to global benchmarks, affordable internet should cost no more than 2 percent of income. In Nigeria, fixed broadband costs significantly exceed that threshold, putting connectivity out of reach for many low-income households.

Rural communities remain particularly affected, with many users still relying on slower 2G networks, while urban areas dominate access to faster 4G services.

Even among connected users, high data costs are forcing households and small businesses to ration usage, limiting productivity and access to digital opportunities.

Impact on economic growth

Nigeria’s digital economy continues to expand by powering sectors such as fintech, e-commerce, and content creation. However, the current cost-quality imbalance poses risks to long-term growth.

 

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High data costs are increasing operating expenses for small businesses, discouraging adoption of data-intensive technologies such as artificial intelligence and cloud computing, and widening inequality in access to digital tools.

Without improvements in affordability and service quality, Nigeria’s digital economy could face slower growth and reduced global competitiveness.

Way forward

Expert have said resolving the crisis will require coordinated action from government, regulators, and industry players.

Key priorities will include standardising and reducing Right-of-Way charges across states, expanding fibre infrastructure through public-private partnerships.

Improving electricity supply to lower operating costs and encouraging infrastructure sharing among telecom operators.

It will also include protecting telecom infrastructure as critical national assets.

Adebayo emphasised the need for balance between affordability and sustainability.

“Consumers must receive value for money, operators must remain viable, and government must address structural bottlenecks,” he said.

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With internet access now central to economic participation, education, and innovation, ensuring affordable and reliable connectivity will be critical to unlocking Nigeria’s full digital potential.

Until then, millions of Nigerians may continue to face a frustrating reality: paying more, but getting less.