Following a 50% increase in data tariffs in January 2025, Nigerians are cutting back on digital consumption. NCC data shows internet usage dropped from 1 million terabytes in January to 983,283.43 TB by April, with mobile internet subscriptions declining slightly to 141.99 million. Despite the dip, MTN and Airtel posted strong Q1 data revenues. Operators attribute the price hike to soaring operational costs, while consumers criticise high prices and persistent poor service. Telcos blame underinvestment and fibre vandalism for quality issues but pledge improvements from late Q3 2025, backed by a ₦1.59 trillion ($1 billion) network expansion plan.

Demand for telecommunications services in Nigeria remains relatively inelastic, as anticipated. The recent decline in usage does not proportionately reflect the steep increase in tariffs, a factor undoubtedly central to network operators' financial projections. This situation creates a peculiar "double bind" for Nigeria's economy and its populace.

On one hand, the industry's justification for the tariff hike – the necessity for renewed investment after a decade of stagnation – is valid. Years of underinvestment have demonstrably hindered infrastructure development and service expansion. On the other hand, the widespread outcry from Nigerian consumers is equally justified. The macroeconomic realities for the average Nigerian are stark: an average annual inflation rate consistently exceeding 25% in recent years, coupled with a stagnant labour market failing to deliver commensurate wage growth, has significantly eroded real disposable incomes. In this environment, households are compelled to recalibrate spending, prioritising essentials whilst drastically curtailing discretionary expenditures, including leisure activities, entertainment subscriptions, and, crucially, data plans.

Against this backdrop, the NCC's recent approval of a 50% increase in telecom tariffs —the first in over 10 years —offers a significant reprieve for operators. However, this newfound pricing power brings heightened responsibility. The NCC must now vigorously intensify its oversight, particularly concerning service quality and the actual data "burn rates." It is paramount to ensure that Nigerian consumers, now paying significantly more, genuinely receive the full value and quality of service for which they are being charged. Failing to do so would exacerbate existing economic hardship and further erode public trust in both the regulatory framework and the operators themselves. This transcends a mere commercial issue, touching upon fundamental questions of consumer welfare and equitable access to essential digital services in a challenging economic climate.