Record streaming activities on Netflix, YouTube and other platforms increased internet spending by 34.26 percent to N2.81 trillion in 2024 from N2.09 trillion in 2023.
According to new data from the Nigerian Communications Commission (NCC), total internet consumption reached an all-time high of 9,763,595.18 terabytes (9,763,595,180 gigabytes) from 7,272,020.24 TB (7,272,020,240 GB) in 2023.
An analysis by BusinessDay shows that the average cost of a price of 1GB is N287.5. In 2024, 1GB on Airtel cost N350, N200 on MTN, N300 on Glo, and N300 on 9mobile, bringing the average cost to N287.5.
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The COVID-19 pandemic accelerated internet consumption for many, with lockdowns and social distancing forcing many to work, learn, and socialise virtually. This trend continued, with monthly internet usage surging by 677.83 percent to 973,455.35 TB in December 2024 from 125,149.86 TB in December 2019.
The growing demand for digital services has been at the core of this continued growth. “Streaming is driving this surge,” stated Adeolu Ogunbanjo, president of the National Association of Telecoms Subscribers (NATCOMS).
“Social media and streaming content have been crucial in driving data consumption,” highlighted Karl Toriola, chief executive officer of MTN Nigeria.
This pushed the average data usage per customer of the telco up by 31.2 percent to 11.2 GB in the first nine months of 2024, with overall data traffic growing by 42.1 percent.
The streaming market is a mix of Nollywood, music, comedy skits, and religious content. It is driven by a youthful demography. The country ranks among the top nations on Spotify’s daily streaming data.
YouTube has also become a streaming platform of choice for any Nigerians, especially as Nollywood increasingly migrates to the platform following a slowdown in funding from streaming giants like Netflix and Amazon Prime.
“We have a lot more users coming online and consuming more content… Trends are changing; digital is here to stay… For instance, more Nigerians are watching Nollywood movies on YouTube,” said Adetutu Laditan, former senior product marketing manager for Sub-Saharan Africa at YouTube.
Increased smartphone penetration has also played a role in this growth, according to Airtel Africa, which recorded a data usage per customer growth of 37.2 percent to 8.4 GB per month from 6.2 GB, with smartphone penetration increasing 6.4 percent to 49.5 percent.
“Smartphone data usage per customer reached 11.2 GB per month compared to 8.8 GB per month in the prior period,” Airtel noted in its full-year report for 2024.
The increased uptake in data consumption through smartphones has ensured that the country stays above the regional average, with about 29 percent of Nigerians (about 58 million) using the internet, according to GSMA, the global body for telcos.
GSMA notes that most Nigerians (85 percent) use mobile internet to make or receive video calls, 75 percent to watch free-to-access online videos, and 54 percent to listen to free music online.
This increase in usage has also translated into benefits for telcos. Between January and September 2024, MTN Nigeria and Airtel Nigeria reported combined data revenues of N1.63 trillion, up from N254.32 billion in the same period of 2019.
Read also: Here is how telcos’ internet speed performed in 2024
According to Toriola of MTNN, the persistent growth in data consumption will drive telcos’ revenue for the next couple of years. “We are positioning ourselves to capture the opportunities of growth for the next 10 years. The demand for data in Nigeria is exceptional and will continue to grow,” Toriola stated.
Despite these strides, old and new challenges persist. Broadband penetration, which refers to high-speed internet access, remains below 50 percent.
However, a vast digital urban-rural gap, fluctuating internet speeds and high cost of smartphones remains a barrier to many. Also, a recent 50 percent hike in the price of telecom services may marginally slow data consumption.
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