Telecom operators in Nigeria are raking in record revenues from data services as mobile internet consumption surges across the country, driven by a youthful, mobile-first population.
Latest financial results from MTN Nigeria and Airtel Nigeria show that data now accounts for a significant share of their earnings, with both companies reporting double-digit growth in data revenue for the second quarter of 2025.
In Q2 2025, MTN Nigeria’s data revenue jumped by 85.6% to N701 billion from N377 billion recorded in the same period last year.
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For Airtel Nigeria, data revenue within the same period rose by 60.3% to N260 billion ($168 million) compared with N185.4 billion ($117 million) recorded in the same period of 2024.
A surge in data consumption
While the recent 50% tariff implementation could also be attributed to the growing revenue, figures released by the Nigerian Communications Commission (NCC) confirm that Nigerians are indeed consuming more data, even as the telcos adjusted their prices.
- In May, for instance, Nigerians consumed 1.04 million terabytes of data and it came as the highest monthly record since January 2023, when the telecom regulator started publishing the data.
- MTN and Airtel, with a steady increase in smartphone connections on their networks, also confirm that their customers are consuming more data.
- While noting that its data traffic grew by 41.2% MTN said the average data usage per subscriber on its network also increased by 26.3% Year-on-Year to 13.2GB per month.
“Data usage per customer increased by 27.3% to 9.3 GB per month (from 7.3 GB in the prior period), with smartphone penetration increasing 4.8% to reach 51.4%,” Airtel reported in its latest results.
“Smartphone data usage per customer reached 11.8 GB per month compared to 9.9 GB per month in the prior period,” the company added.
Shift in customer behaviour fuelling data boom
Behind the numbers lies a bigger story about shifting consumer behavior and the digital habits fueling the surge in data consumption.
From binge-watching YouTube and Netflix to endless scrolling on TikTok, Facebook, and Instagram Reels, mobile internet has become central to daily life.
On top of that is the shift from traditional voice calls to digital calls, as many Nigerians now leverage their data for all communication needs.
“I don’t even remember the last time I made a traditional phone call,” said Abraham Aduloju, a 28-year-old content creator in Lagos.
“Everything I do is online Zoom meetings, WhatsApp voice notes, WhatsApp calls, editing and uploading videos. I use at least 30GB a week,” he added.
According to a telecom expert, Mr. Adewale Adeoye, the explosion of short-form video platforms like TikTok and Instagram Reels has particularly driven data usage among younger Nigerians.
“Apps that autoplay videos by default consume significant bandwidth, and many users are now adjusting their budgets to accommodate the habit.
“Online gaming, livestreams, and remote work tools like Microsoft Teams and Google Meet have also contributed to rising data consumption across income levels,” he added.
Providing more insight on the Nigerian telecom consumer behaviour, the Chief Executive Officer of K-Chronos Global Tech Limited, Mr. Presley Ibadin, said an average Nigerian today may not have food at home but will ensure he has data on his phone because with that he can reach out to friends or family for assistance.
“That is how important data has become in every Nigerian’s life, and it is not surprising that the telecom operators are seeing growth in data revenue. For many Nigerians, data is no longer a luxury, but a lifeline to work, entertainment, and social connection,” he said.
- Mr. Ibaden, however, noted that the telecom operators will need to invest more to improve their service quality.
- According to him, the experience on the networks at times can be frustrating, adding that this is why many Nigerians are still subscribing to multiple service providers, such that they are able to switch to another provider when one falters.
Operators ramp up investments in infrastructure
Meanwhile, the telecom operators are also doubling down on their investments in infrastructure to meet the growing demands for data in the country.
In the first half of 2025, MTN reported that it invested N565.7 billion to accelerate the expansion of its network infrastructure, marking a 288.4% increase in capital expenditure compared to the same period last year.
MTN said the surge in capex, excluding lease payments, was necessary to meet growing data traffic and improve service quality for its over 84 million subscribers.
“The accelerated capex in H1 was deployed to support growth in data traffic as well as enhance service quality and user experience,” the telco stated.
A breakdown of the investments shows that MTN deployed 240 new 4G sites, expanded its fiber-to-home network, and began work on a new data centre to meet increasing digital demand.
Similarly, Airtel Africa, the parent company of Airtel Nigeria, said it also increased capital expenditure in Nigeria to $39 million in the second quarter of 2025, up 1.7% from $38 million in the same period last year.
“In Nigeria, capital expenditure for the quarter ended 30 June 2025 was $39m, compared to $38m in the same period last year,” the company reported.
- Airtel Nigeria in May this year, had announced plans to double its capital investment this year as it seeks to accelerate the deployment of 5G and expand its network coverage.
- According to the telco, the new investment drive will cover a wide range of areas, including critical infrastructure upgrades, rural network expansion, advanced data solutions, customer experience enhancements, and community-focused initiatives.
- Specifically, the company said it would fast-track the deployment of 5G technology across its network, bringing ultra-fast data speeds and low-latency connectivity to customers nationwide and also add more sites in underserved and rural communities, bridging the digital divide and ensuring broader access to mobile services.
Airtel is also equipping its data centers to leverage the 2Africa submarine cable landing stations, boosting international bandwidth capacity and data throughput.
