Nigeria’s telecommunications sector is experiencing a paradoxical trend where the number of active subscribers is declining while data usage continues to surge to record levels. Recent industry data indicates that total active mobile subscriptions fell slightly, driven by factors such as SIM deactivations, stricter regulatory compliance, and economic pressures affecting consumer affordability. Despite this contraction in subscriber numbers, the volume of data consumed across networks has risen significantly, underlining the country’s accelerating digital shift.
Analysts attribute this development to the growing dependence on internet-based services for communication, entertainment, and business operations. Video streaming, social media, e-commerce, remote work, and digital financial services are among the leading drivers of increased data traffic. The expansion of 4G coverage and the gradual introduction of 5G services are also contributing to higher consumption per user, as faster internet speeds encourage more bandwidth-heavy activities.
Telecom operators are responding to the surge in demand by investing heavily in network infrastructure, expanding fibre-optic capacity, and enhancing service quality to manage the traffic load. However, challenges remain. Industry stakeholders cite persistent issues such as high operating costs due to power shortages, multiple taxation, and foreign exchange constraints that make it difficult to import equipment. These pressures threaten profitability and limit the ability of operators to extend coverage to underserved areas.
The decline in subscriber numbers also reflects a maturing market, where existing users are consolidating SIM cards instead of maintaining multiple lines, a trend accelerated by the mandatory National Identification Number (NIN)-SIM linkage exercise. This has reduced inactive and duplicate accounts in the system, resulting in a leaner but more data-driven customer base.
Experts suggest that the focus of the industry is shifting from merely growing subscriber numbers to maximizing revenue through data services, value-added products, and digital platforms. With Nigeria’s youthful population, rising smartphone adoption, and increasing reliance on digital solutions, data consumption is expected to continue its upward trajectory. Policymakers and regulators, however, will need to balance consumer protection with fostering innovation and investment to sustain growth in the sector.
In essence, while subscriber figures dip, Nigeria’s telecom landscape is being redefined by unprecedented data consumption, underscoring the country’s rapid transition into a digital-first economy.
Leave a Reply