Monthly data expenses in Nigeria have surged by over 300% since 2023, fueling one of the nation’s most significant economic sectors. In the first half of 2025, the telecommunications industry contributed ₦15.02 trillion ($10.17 billion) to Nigeria’s economy, marking a 25.8% increase from ₦11.94 trillion ($8.09 billion) during the same period in 2024.
Nigeria’s Gross Domestic Product (GDP) expanded by 4.23% year-on-year in Q2 2025, driven by advancements in agriculture, industry, and services. The overall economic output rose by 18.78%, reaching ₦194.78 trillion ($131.93 billion) in the first half of 2025, compared to ₦163.99 trillion ($111.08 billion) in H1 2024.
The telecom sector in Nigeria has evolved into a cornerstone of the country’s economic progress, extending far beyond basic connectivity. While voice calls once dominated, the surge in data consumption now drives the industry. Whether it’s streaming live sports, religious broadcasts, or endless hours of video content, changing consumer habits are propelling this vital economic engine.
Transitioning from Voice to Data Leadership
Prior to 2019, voice services were the main revenue source for telecom companies. However, data has since taken the lead. MTN Nigeria’s data income soared by 108.46% over two years, reaching ₦1.59 trillion ($1.08 billion) in 2024. Meanwhile, voice revenue grew by 25.61% to ₦1.30 trillion ($880.55 million) in the same timeframe, standing at ₦1.23 trillion ($833.14 million) in H1 2025. Airtel’s data revenue climbed 50.35% since 2020, reaching $654 million by the end of its fiscal year in March 2024.
Data usage per subscriber has also surged dramatically. Airtel customers increased their average data consumption by 232.14% since March 2021, hitting 9.3 GB in June 2025. MTN users saw a 53.49% rise since December 2023, averaging 13.2 GB per user in June 2025.
According to the World Bank, the information and communications technology sector expanded by 10.3% year-on-year in 2023, even during the 2020 recession, thanks to rising data consumption by both households and businesses alongside growing subscriber numbers.
Streaming services have been pivotal in this growth, as users increasingly shift from traditional large-screen viewing to mobile devices. Data consumption reached 1.15 million terabytes (TB) in August 2025, a 75.69% increase compared to 655,879.86 TB in August 2023, according to the Nigerian Communications Commission (NCC).
Victor Onofomi, a digital marketing professional, shared, “Every device in my home-from my television to my work computer and my daughter’s online classes-relies entirely on internet connectivity.”
The NCC estimates that streaming one hour of video consumes approximately 350 MB in standard definition and up to 1 GB in high definition.
The global telecom association GSMA highlights that connectivity is more crucial than ever. Their research shows that 86% of Nigerians online use mobile data for video calls, 82% for watching free online videos, and 79% for entertainment purposes. This widespread usage has pushed Nigeria above the regional average, with nearly 29% of the population actively using the internet.
Challenges Persist
Despite these gains, broadband penetration-defined as access to high-speed internet-remains at 48.81%. Approximately 60% of Nigerians are still offline, primarily due to the prohibitive cost of smartphones, according to GSMA. In 2024, 130 million Nigerians lacked mobile internet access, an increase of 10 million from the previous year.
Affordability remains the biggest obstacle to device ownership and mobile internet adoption, especially in low- and middle-income countries, GSMA notes.
In rural areas, only 39% of residents owned smartphones in 2024, compared to 73% in urban centers.
Furthermore, Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, estimates that around 20 million Nigerians remain completely disconnected. To address this, the government is investing $2 billion to lay 90,000 km of new fiber optic cables, aiming to bridge connectivity gaps.
Looking ahead, internet adoption is projected to rise, with an estimated 32 million new mobile internet users expected between 2025 and 2030. The smartphone market also rebounded by 10% in Q2 2025 after a 7% decline in Q1, according to Canalys, signaling improved affordability.
Industry executives believe the surge in data demand is only beginning, with consumption set to rise as more Nigerians come online.
“We are strategically positioning ourselves to seize growth opportunities over the next decade. Nigeria’s appetite for data is extraordinary and will keep expanding,” said Karl Toriola, CEO of MTN Nigeria, during a TV interview in January 2025.
For everyday users, every streamed soccer match, religious broadcast, and marathon of online videos is more than just leisure-it’s the driving force behind Nigeria’s booming telecom industry.
Note: Exchange rate used is ₦1,476.35 to $1.
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