Business News of Tuesday, 11 August 2026
Source: www.punchng.com
Nigeria’s internet consumption reached an estimated N6.6tn in value over the 12 months through May, indicating the scale of the country’s expanding digital economy even as telecommunications operators contend with the cost of carrying ever-growing volumes of traffic.
The estimate is derived from data-usage figures reported by the Nigerian Communications Commission and an average value of N431 per gigabyte, rather than from revenue reported by telecommunications operators.
Before the NCC’s 50 per cent tariff increase in January 2025, the average price of 1GB of mobile data in Nigeria was about N287.50. After the hike took effect in February 2025, the regulated average rose to N431.25 per 1GB, while actual retail prices commonly ranged between N475 and N637.50 depending on the operator and plan.
NCC data show Nigerians consumed 15.32 million terabytes of internet data between June 2025 and May 2026. Converting that volume into gigabytes produces about 15.32 billion GB. At N431 per GB, it means subscribers spent about N6.6tn on data consumption.
Consumption is not limited to the four major mobile operators, which include Airtel, MTN, T2, and Globacom. It encompasses internet usage associated with different licensed service providers and technologies, including GSM, fixed wired connections, internet service providers and VoIP services.
The N431 benchmark is an estimated average, rather than an official industry-wide price. Actual prices paid for data vary depending on the operator, technology, customer, bundle, promotional offer, validity period and other commercial conditions.
According to the NCC data, monthly consumption rose from about 1.04 million TB in June 2025 to a record 1.50 million TB in May 2026, an increase of roughly 44 per cent. Over the period, usage generally trended upward, although there were monthly declines.
Consumption rose to about 1.13 million TB in July and 1.15 million TB in August before remaining flat in September. It passed 1.2 million TB in October and November, then grew to 1.39 million TB in December.
Further analysis of the report showed that usage remained around that level in January 2026 before falling to approximately 1.26 million TB in February. It subsequently recovered to about 1.42 million TB in March and 1.41 million TB in April, before reaching the May record.
MTN, the country’s number one mobile operator, recorded about N1.7tn in revenue for data services in the first half of 2026. Data revenue rose to N1.699tn during the six months, up from N1.229tn recorded in the corresponding period of 2025, representing an increase of about 38.3 per cent.
For operators, however, rising data consumption presents both an opportunity and a cost. More traffic can support higher demand for data services, but operators must also expand the infrastructure required to carry it. That means investment in spectrum, fibre, transmission networks, base stations, data centres and other infrastructure, alongside higher energy and maintenance costs.
In May, the industry regulator said mobile network operators and tower companies invested about N2.5tn in network infrastructure and upgrades in 2025 amid growing complaints by Nigerians over dropped calls, slow internet speeds, unstable data services, and network disruptions across parts of the country.
Those investments supported the addition and upgrade of more than 2,800 telecommunications sites nationwide, helping to address coverage and capacity gaps in several locations.
Telcos added and upgraded over 12,000 telecom sites in 2026, with nearly 3,000 already completed. The regulator also revealed that more than 730 additional 5G sites had been deployed across 27 states this year.