Onome Amuge
Nigeria’s hunger for data is accelerating at a pace the country’s telecom networks are struggling to match. Telecom operators, including MTN, Airtel, Globacom, and a growing number of smaller Internet Service Providers (ISPs), are facing record levels of data consumption that are testing the limits of existing infrastructure and forcing billions of naira in fresh investment.
According to new figures from the Nigerian Communications Commission (NCC), Nigerians consumed 1.15 million terabytes of data in August 2025, up from 1.13 million terabytes in July, the highest monthly usage ever recorded. The increase extends a growth trajectory that began at the start of the year, reflecting how mobile broadband has become deeply embedded in daily life and business operations across the country.
But while consumption is soaring, so too are the strains. Network congestion, dropped calls, buffering video streams and sluggish downloads have become increasingly common, particularly in Nigeria’s dense urban corridors such as Lagos, Abuja, and Kano.
The NCC acknowledged in its latest network capacity report that current infrastructure is inadequate to support the growing appetite of Nigerians for data, warning that the imbalance between usage and capacity is widening each month.
The problem is largely localised. The NCC found that capacity restrictions are concentrated in urban areas, where the number of connected devices and data-heavy users is highest. Lagos alone, which the National Bureau of Statistics (NBS) estimates hosts the country’s largest internet user base, accounts for a disproportionate share of traffic.
“The constraint is not evenly distributed. It is a localised issue tied to high-density zones where user demand outstrips network supply,” the NCC said.
In practice, this means that while rural areas enjoy relatively stable, if slower, connections, users in major cities often encounter interruptions during peak hours. For Lagos-based start-ups, streaming platforms and fintech operators, this translates to lost productivity, failed transactions and higher operational costs.
Nigeria’s telecoms sector has long been one of the fastest-growing in Africa, serving more than 140 million active internet subscriptions as of August 2025. But growth in new users is slowing, even as existing subscribers consume more data.
The NCC’s figures show that total active internet subscriptions have fallen slightly from 142.2 million at the start of the year to 140.3 million in August, underscoring a shift in consumption patterns.
The scale of Nigeria’s data demand has turned the country’s biggest telecom operators into some of its largest corporate investors.
MTN Nigeria, the country’s leading mobile provider with over 84 million subscribers, increased its capital expenditure by 288 per cent in the first half of 2025, spending N565.7 billion to expand its network capacity. The company described the investment as necessary to meet growing data traffic and improve service quality.
“The accelerated capex in H1 was deployed to support growth in data traffic as well as enhance service quality and user experience,” MTN said in a statement to investors.
Rival Airtel Nigeria has also stepped up spending, with parent company Airtel Africa reporting that capital expenditure in Nigeria rose to $39 million in the second quarter, up slightly from the previous year.
Dinesh Balsingh, chief executive of Airtel Nigeria, said the company was investing heavily in both 5G rollout and fibre expansion to handle rising demand.
The spending spree comes amid a structural shift in how telecoms make money. Voice revenues, once the sector’s cash cow, have stagnated, while data has become the clear growth driver.
MTN’s data revenue rose 85.6 per cent year-on-year in the second quarter to N701 billion, while Airtel Nigeria’s rose 60.3 per cent to N260 billion ($168 million). For both companies, data now contributes more than half of total service revenues, reflecting Nigeria’s evolution into a mobile broadband economy.
Analysts say this transition mirrors a broader global trend: as economies digitise, connectivity providers evolve from basic telecoms operators into integrated digital platforms.
The NCC, which oversees the sector, has urged operators to adopt a dual strategy: accelerate 5G deployment while optimising the capacity of existing 4G networks.
Nigeria was among the first African countries to license 5G spectrum in 2021, but coverage remains limited, and rollout costs are high. Fibre backhaul infrastructure is also underdeveloped, particularly outside major cities.
The Commission said it is also exploring new policies to attract private capital into broadband expansion, including incentives for rural connectivity and easing right-of-way charges.
Despite its infrastructure headaches, the telecom industry remains one of Nigeria’s most dynamic sectors and a key pillar of economic growth. In the second quarter of 2025, the Information and Communications Technology (ICT) sector, dominated by telecoms, contributed 11.18 per cent to GDP, up from 10.6 per cent in the previous quarter.
According to the National Bureau of Statistics, the sector grew 6.61 per cent year-on-year, accelerating from 4.38 per cent in the same period last year. On a quarterly basis, growth was up 9.58 per cent.
