Business News of Tuesday, 27 May 2025

Source: www.punchng.com

Nigeria’s internet penetration hits 48.15%

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Nigeria’s telecommunications sector is grappling with a complex landscape as internet penetration reached 48.15 per cent in April 2025, up slightly from 47.73 per cent in March, according to data from the Nigerian Communications Commission.

However, this modest gain is overshadowed by a second consecutive month of declining data consumption, driven by steep tariff hikes and mounting economic pressures that are forcing consumers to scale back on internet usage. Nigeria has missed its internet penetration target for 2025.

The National Broadband Plan (NBP 2020–2025) set an ambitious goal of achieving 70% broadband penetration by the end of 2025.

Stakeholders confirm that Nigeria is “still a long way from achieving its 70 per cent penetration target” and that the current trajectory makes it unlikely the goal will be reached by the end of the year.

The slow progress is attributed to several persistent challenges, including high costs and bureaucratic delays in obtaining right-of-way for infrastructure deployment, with only a few states waiving these fees.

The NCC reported that data usage dropped to 983,283.43 terabytes in April, down from 995,876.10 terabytes in March. This decline follows a sharp fall earlier in the year, when data consumption plummeted from a record one million terabytes in January to 893,054.80 terabytes in February, accompanied by a loss of approximately one million internet subscribers.

While March saw a partial recovery with an 11.5 per cent increase in data usage and subscriptions rebounding to 142.05 million, April’s figures slipped again to 141.99 million subscribers, signalling renewed strain on the sector.

Despite the uptick in internet penetration, Nigeria’s digital economy faces significant challenges. The country’s appetite for data remains robust, driven by digital lifestyle trends, network expansion, and the internet’s vital role in education, commerce, and social connectivity.

However, affordability issues are threatening to stall progress, with internet penetration still below the 50 per cent mark. Industry experts warn that without addressing these cost barriers, Nigeria’s nascent digital economy could falter.

The NCC data also highlighted a surge in subscriber porting, with 6,789 customers switching networks in April, a 121 per cent increase from 3,064 in March. MTN Nigeria led the market, gaining 3,960 subscribers, followed by Airtel with 1,860 and Globacom with 966.

In contrast, 9mobile added just three subscribers, underscoring the fierce competition in a price-sensitive market. Additionally, the NCC noted 208,482 active subscribers for data services across licensed providers, likely representing a specific segment of the market.