Data boom: Between connectivity and survival drive

Karl Toriola, MTN Nigeria CEO

Data is no longer just a commodity but also the oxygen of modern existence. As we cross the threshold of AI-driven traffic outpacing human interaction, the “data boom” has shifted from a luxury of connectivity to the prerequisite for survival, amid teething challenges, ADEYEMI ADEPETUN reports.

In the bustling markets of Lagos, the remote hubs of Osun State and nationwide, a digital conflict is playing out on millions of smartphone screens. On one hand, Nigeria is in the midst of an insatiable hunger for the Internet, consuming data at a pace never seen before. On the other hand, the very pipes delivering this digital oxygen are bursting, leaving consumers paying a premium for a service that never exists.

New data from the Nigerian Communications Commission (NCC) revealed a staggering paradox: Nigerians consumed over four billion gigabytes of data in the first three months of 2026 alone, setting a new quarterly record. Yet, as the country dives deeper into the digital economy, the infrastructure collapses under the weight of its own success, while economic realities force families to choose between virtual connectivity and real-world survival.

A country hooked on bandwidth
THE statistics from the first quarter of 2026 are breathtaking. Total data consumption hit 4.06 million terabytes (TB), smashing the previous high of 3.86 million TB set in late 2025. March was the hungriest month on record, with Nigerians devouring 1.42 million TB of data.

Based on these figures, there is something around rapid technological evolution. The era of 2G and 3G is dying; as of March, 4G networks accounted for nearly 54 per cent of connections, while 5G is slowly carving out a 4.2 per cent niche in cities like Lagos and Abuja. This shift is driven by a surge in video streaming, mobile payments, and the digitisation of everything from religious services to university lectures.

On the surface, this is a success story. MTN Nigeria, the market leader, reinvested about N1 trillion in network upgrades last year, with Airtel committing hundreds of millions of dollars. The NCC even announced that over $1 billion would be invested in infrastructure in 2026 alone, with plans to upgrade roughly 12,000 sites.

But for the average Nigerian like Olufunke Joseph, an entrepreneur in Lagos, the math does not add up. “I spend about N20, 000 monthly on data, and it doesn’t last,” she stated. “I feel like I’m paying more for less.”
Paying more for less

THE “pay more, get less” reality is rooted in the harsh economic soil of Nigeria. Over the past two years, the average price of 1GB of data has more than doubled, rising from roughly N287 in 2023 to over N637 by mid-2025. This spike was turbocharged by the NCC’s approval of a 50 per cent tariff hike in early 2025; a move operators argued was essential to avoid “service shedding”, a scenario where networks would simply shut down in unprofitable areas.

Telecom CEOs argued they are fighting a losing battle against inflation and currency devaluation. Karl Toriola of MTN noted that without higher tariffs, operators couldn’t afford diesel for generators or dollars to import equipment from Ericsson and Nokia. Yet, for Nigerians suffering the worst cost-of-living crisis in a generation, these justifications ring hollow.

While subscribers ration data, disabling apps and skipping video calls, the telcos appear to be smiling at the bank. MTN Nigeria posted a dramatic recovery, pulling in $3.62 billion in revenue and over $1 trillion in profit after a previous year of losses, thanks largely to the tariff adjustments. Airtel Africa reported that Nigeria accounted for 49 per cent of its total revenue.

This disconnect has led to widespread accusations of exploitation. Subscribers like Segun Akelebe in Ikorodu reported that services are often “hazy,” “unstable,” or feature “echoes” that make conversations unintelligible. The perception is that operators have raised prices without fixing the fundamental physics of their networks.

Nigeria still offers cheaper broadband
THE Internet, especially broadband prices, is still relatively cheaper in Nigeria. A survey by the World Broadband Price League 2026 ranked Nigeria 49th among 214 countries with the lowest broadband costs globally.
Through its Broadband Genie, which collected data of 2,631 broadband tariffs from 214 countries between January 27 and February 10, it ranked countries on average (median) broadband cost. Countries were ordered from cheapest to most expensive.

The company calculated the average monthly cost of fixed-line broadband services worldwide, and prices were sourced from official local Internet service provider websites or trusted broadband comparison sites.
According to the report, the average broadband service in Nigeria costs $23.25 (N31, 365.55).
Broadband Genie observed that emerging markets typically have cheaper broadband. According to it, Egypt has an average broadband cost of $7.91, placing it in the top 10 (6th). Kenya ranked 89th at $38.75; Algeria ranked 28th at $18.54; the Ivory Coast ranked 126th at $54.45; and South Africa ranked 119th at $50.20 (R823). In other emerging markets, Vietnam is ranked 11th, Brazil 47th and the Philippines 78th.
Counting the ‘cuts’

SO, where is the money going? In many cases, it is being burned by diesel generators or drained by vandals. The NCC revealed a shocking statistic: between January and March 2026 alone, telcos suffered 1,883 fibre cuts.
Industry experts estimate that about 60 per cent of network disruptions are caused by road construction workers digging up fibre-optic cables they did not know were there, or by vandals stealing infrastructure for scrap. With Nigeria needing an estimated additional 95,000 kilometres of fibre to achieve universal access, the current 35,000 km network is under constant siege.

Recognising that fines were not fixing the problem, the NCC recently mandated that operators must compensate subscribers directly. In April and May 2026, customers began receiving airtime credits for poor service experienced between November 2025 and January 2026.

However, the compensation has become a symbol of the problem rather than the solution. Some subscribers received as little as N20 or N167 in airtime. “This is an insult,” one social media comment read, noting that the compensation barely covers the cost of a single failed data session.

The National Association of Telecoms Subscribers (NATCOMS), led by Deolu Ogunbanjo, has demanded 100 per cent refunds for services not rendered, arguing that a customer should not pay for electricity that is too low to light a bulb.

Running faster to stand still
THE NCC boss, Dr Aminu Maida, offered a sobering diagnosis of the industry. He noted that user experience improvements are often “quickly eroded by rising data consumption”. It is a cycle of diminishing returns: upgrades ease congestion, but the relief encourages more streaming, which immediately clogs the network again.

He argued that to solve this, operators must build “excess capacity,” not just meet current demand. Further, the entire sector is still reeling from “a prolonged period of underinvestment.” The 12,000 promised site upgrades for 2026, a massive jump from just 300 last year, signal that the industry is finally waking up, but for millions of users suffering daily dropouts, the change cannot come soon enough.

As Nigeria races toward a digital future, it is stuck in a present of paradoxes. Data flows like water, yet costs like gold. Infrastructure expands, yet stability contracts. For now, the Nigerian subscriber can only hope for the best.

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