The Nigerian Communications Commission (NCC) reported a significant decline in internet subscribers to 139.28 million in December 2024, down 15% from 163.83 million in December 2023. This sharp decrease appears to coincide with Nigeria's deepening cost of living crisis, as many citizens struggle to afford basic telecommunications services.

Economic Context

The reduction in internet subscriptions reflects the broader economic challenges facing Nigerian consumers. The removal of fuel subsidies in 2023, combined with rapid currency devaluation and soaring inflation, has severely impacted household purchasing power. Many Nigerians have been forced to prioritize essential needs like food and housing over telecommunications services, leading to dropped subscriptions or reduced data usage.

Telecom Provider Performance

The economic hardship has affected telecom providers differently:

- MTN Nigeria reached 72.22 million subscribers, adding 1.56 million year-over-year despite the challenges

- Airtel grew to 47.41 million, gaining 2.34 million subscribers

- Globacom experienced a dramatic decline to 17 million, losing 26.92 million subscribers

- 9mobile dropped to 2.06 million, down 1.56 million

The stark contrast in performance suggests that consumers may be consolidating their subscriptions to larger providers offering better value propositions during these difficult economic times.

Overall Telecommunications Landscape

Total telephony services subscribers decreased to 164.9 million in December 2024 from 224.7 million the previous year, a decline of 59.7 million users. Market share distribution showed:

- MTN: 84.6 million subscribers

- Airtel: 56.61 million

- Globacom: 20.13 million

- 9mobile: 3.23 million

Technology and Infrastructure

Despite the economic challenges, some positive trends emerged:

- Broadband penetration increased to 44.43% in December 2024

- Data usage grew to 973,455.35 terabytes, up from 713,200.6 terabytes in December 2023

- Technology usage breakdown:

  - 4G: 47.2%

  - 3G: 8.75%

  - 5G: 2.46%

This increase in data usage among remaining subscribers suggests that while many Nigerians have had to cut back on multiple subscriptions, those who maintain their internet access are consuming more data, possibly due to increased reliance on digital services for work, education, and communication.

The contrasting trends of decreased subscriptions but increased data usage per subscriber highlight the complex relationship between economic hardship and digital connectivity in Nigeria.