NIGERIA’s digital economy is flashing a complex paradox. The latest industry statistics from the Nigerian Communications Commission (NCC) for April reveals a widening disconnect between network expansion and consumer purchasing power: broadband subscriptions have climbed to an impressive 120 million milestone (55.6 per cent penetration) from 117 million, yet actual Internet data consumption has suffered a noticeable slump.

Interestingly as well, the telecom operators unwrapped some 2.29 million new SIMs in the month under review. Active subscriptions rose from 185.7 million in March to 188 million a month after.

In April, data consumption dropped to 1.414 million terabytes from 1.422 million terabytes recorded in March. In February, data consumed was 1.260 million terabytes as against 1.385 million in January.

It can be deduced that while Mobile Network Operators (MNOs) have expanded their high-speed Internet footprints, driven by aggressive infrastructure deployment and 5G rollouts, the volume of data passing through these networks shrank in the month under review.

It also means that while more Nigerians are holding active data-capable SIM cards, their actual time spent online is being sharply curtailed.

Industry analysts attribute this digital slowdown to persistent macroeconomic headwinds. Spiraling inflation, food insecurity, and the biting impact of recent tariff adjustments may have forced a large percentage of subscribers into strict data rationing. For the average consumer, Internet data has shifted from a casual utility to a heavily policed expense. Millions of users are turning off background data, bypassing video streaming, and restricting their online activities strictly to essential communications.

Also as part of measures going forward, MTN recently sensitised subscribers on data depletion challenge. The MNO explained that fast data depletion is rarely caused by “data theft” or network billing errors. Instead, it is driven by modern smartphone features, background app activities, and faster network speeds (4G/5G) that scale up media quality.

Further analysis of the April Subscription Data released Friday, MTN maintained its dominance with 96 million subscribers and 51 per cent penetration. Airtel is second with 34 per cent market reach and 64.6 million users. Globacom has 23 million customers and 12 per cent penetration. T2 held tight its 3.5 million users and 1.88 per cent spread.

Network usage showed that 4G penetration was 54.41 per cent, 2G, 35.93 per cent; 3G, 5.32 per cent and 5G, 4.34 per cent.

Providing more insights into the data, telecom expert, Kehinde Aluko, said the trend introduces a tough puzzle for major telcos like MTN, Airtel, and Globacom. He said on one hand, their capital expenditure (CapEx) remains high as they comply with regulatory mandates to expand coverage and meet the targets of the National Broadband Plan, “on the other hand, they are facing a squeeze on Average Revenue Per User (ARPU) in real terms. The industry is effectively dealing with “silent connections” subscribers, who exist on the grid but lack the economic disposable income to actively feed their bandwidth.

“Infrastructure challenges also continue to shadow these numbers. Despite the high subscriber count, frequent fiber optic cuts, vandalism, and the high cost of powering base stations with diesel continue to impair the quality of service, occasionally dampening user appetite for heavy data usage.

“If this trend continues, the federal government’s digital economy goals could face a structural bottleneck. Reaching 120 million broadband users is a massive victory for digital inclusion on paper, but turning those connections into active economic drivers requires affordable access. Stakeholders are now warning that without immediate economic stabilisation or innovative, consumer-friendly data pricing structures, Nigeria’s massive broadband engine will continue to run below its full capacity.”