Nigeria’s Data Usage Soars to Record Levels, but Poor Infrastructure Threatens Sustained Growth
Story: written by Joseph October 23,2025
Nigeria’s digital economy is experiencing record-breaking expansion, as internet data consumption hit 1.15 million terabytes (TB) in August 2025, according to new figures from the Nigerian Communications Commission (NCC). The unprecedented growth highlights the country’s increasing reliance on data to power sectors such as fintech, e-commerce, and entertainment — but experts warn that weak infrastructure could stall this momentum.
Between May and August 2025, national data usage climbed from 1.02 million TB to 1.15 million TB, a 13 percent increase in just four months and a 31.1 percent jump since November 2024. Analysts attribute this surge to broader smartphone adoption, stronger demand for video streaming and online shopping, and a rebound in digital services after telecom tariff adjustments earlier in the year.
Industry observers say this marks one of the most dynamic phases in Nigeria’s digital evolution. In May 2025, the country’s data traffic crossed the one million TB mark for the first time that year, followed by a steady monthly climb that peaked in August.
Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the growth demonstrates strong consumer appetite for data despite the tough economy.
“These numbers show that demand is resilient, but without larger fibre investments and stronger protection against vandalism, we risk slowing down,” he warned.
While usage is rising, access remains uneven. 4G penetration stands at just 50.85 percent, leaving many rural communities dependent on outdated 2G and 3G networks.
Data Boom Transforms Businesses
The NCC report shows that average data use per subscriber increased from 7GB in December 2024 to 8.2GB in August 2025, driven by the surge in mobile transactions, digital marketing, and app-based services.
E-commerce companies like Jumia and Konga recorded higher order volumes, while fintech firms expanded digital payment solutions across the country. Small businesses and startups are also capitalising on affordable data to cut costs, hold virtual meetings, and connect to broader markets.
The Internet Exchange Point of Nigeria (IXPN) has been instrumental in this transformation. After reaching a 1Tbps throughput milestone in March 2025, IXPN enabled greater local traffic exchange, saving the nation around $40 million annually in international bandwidth costs.
“Hosting and routing more data locally means faster connections, lower costs, and greater reliability for Nigerian users,” said Muhammed Rudman, CEO of IXPN.
Persistent Infrastructure Gaps
Despite the encouraging trends, telecom operators face serious challenges. The NCC recorded over 35,000 fibre cuts across the country by mid-2025, mainly caused by vandalism, theft, and road construction. These incidents continue to disrupt service delivery and delay broadband rollout.
Aminu Maida, Executive Vice Chairman of the NCC, cautioned that poor coordination among state agencies and high Right-of-Way (RoW) fees remain major roadblocks.
“Demand is rising sharply, but unless states harmonise RoW policies, Nigeria’s digital progress could stall,” Maida said at the ATCON CNII Summit in August.
Operators also complain that unpredictable local levies have raised deployment costs, making fibre expansion up to ten times more expensive than in several other African countries.
Rudman further warned that Nigeria’s near-total reliance on mobile networks — accounting for 99 percent of internet access — is unsustainable.
“Many states with millions of people still lack even one independent network. Until we expand local infrastructure, our digital economy will remain limited,” he concluded.
Despite these challenges, Nigeria’s surging data consumption underscores a nation increasingly defined by connectivity — one that must now bridge its infrastructure gap to sustain its digital growth trajectory.
