DIGITAL DIVIDE: Rising data costs threaten access to Nigeria’s online future

As Nigeria advances efforts to digitise public services and economic activities, access to the internet has become increasingly essential for participation in modern life.

From education and healthcare to banking, employment, communication and identity verification, many services now rely heavily on stable internet connectivity.

While the country continues to invest in digital infrastructure, growing concerns have emerged over the affordability of internet access, with rising data prices creating new barriers for millions of Nigerians.

For many citizens, staying connected has become an increasingly expensive necessity rather than a convenience.

In Oko-Erin, Kwara State, a charcoal trader, popularly known as Iya Abbas, said escalating data costs forced her to abandon a Point of Sale business she had hoped would supplement her income.

According to her, the additional venture gradually became unsustainable because a significant portion of her earnings was spent on maintaining internet subscriptions.

“The small profit I make from the POS business almost finishes on data subscriptions every month,” she said.

“Sometimes, after buying data and trying to keep the network active, there is barely anything left for me. I had to stop the business because it was no longer worth it.”

She also complained about inconsistent network performance despite the increasing costs.

“You will buy data, and the network will still be bad. Customers will be waiting while transactions fail or hang. At the end of the day, you are stressed and still spending money to stay online,” she said.

Her experience mirrors that of many small business operators who now view internet subscriptions as one of the unavoidable costs of doing business.

The challenge extends beyond low-income earners to professionals whose livelihoods depend on digital platforms.

A Lagos-based content strategist and social media manager working remotely for an international company said she spends between N50,000 and N60,000 monthly on internet subscriptions.

“I spend a huge amount on data every month, about N50,000 to N60,000. How much is my salary, really?” she queried.

“The fact that I don’t spend money on transport is the only way I’m managing to cope with these ridiculous data costs.”

She added that the high expenditure does not necessarily translate into reliable service.

“Clips take forever to upload. It’s exhausting. Sometimes, it feels unreal, like I’m living in a simulation, because this can’t be the reality we’ve accepted.”

The impact of connectivity challenges is also evident within the healthcare sector as digital health initiatives become more widespread.

A report published by the International Centre for Investigative Reporting in January revealed that some primary healthcare centres in Anambra State reportedly lose N20,000 monthly from their Basic Healthcare Provision Fund allocations for telemedicine-related data subscriptions.

The report stated that poor network coverage often prevents effective utilisation of the service despite the recurring deductions.

“Despite the challenge, OICs alleged that N20,000 is deducted monthly from their facilities’ quarterly BHCPF disbursements for data subscriptions dedicated to telemedicine. They claim the data often expires unused due to poor network access,” the report stated.

The findings also indicated that some health workers resort to using personal internet subscriptions from alternative providers to keep telemedicine services operational.

Industry stakeholders attribute the rising cost of internet access to broader economic pressures affecting the telecommunications sector.

In January 2025, the Nigerian Communications Commission approved tariff adjustments of up to 50 per cent, marking the first significant increase in more than a decade.

Explaining the decision, the Director of Public Affairs at the NCC, Reuben Muoka, said operators had faced rising costs while tariffs remained largely unchanged since 2013.

“Tariff rates have remained static since 2013, despite the rising operational costs faced by telecom operators. The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised,” he said.

Telecommunications operators have cited currency depreciation, energy costs and infrastructure challenges as major contributors to higher operating expenses.

The Chief Operating Officer of MTN Nigeria, Ayham Mousa, said inadequate electricity supply continues to affect network performance across the country.

He explained that between 20 and 30 per cent of operational expenditure is spent on powering network infrastructure and noted that approximately 70 per cent of service disruptions are linked to power-related issues.

Data from the Africa Finance Corporation’s State of Africa’s Infrastructure Report 2025 further highlighted the scale of the challenge, showing that telecom operators in Nigeria consume more than 40 million litres of diesel monthly at an annual cost exceeding $350 million.

The economic burden has coincided with a sharp rise in consumer spending on internet access.

Nigeria’s monthly expenditure on internet services reportedly climbed from N176.87 billion in 2023 to N721.18 billion by mid-2025.

During the same period, the average cost of one gigabyte of data rose from N287.50 to N637.50 across major service providers.

As costs increased, internet subscriptions began to decline, suggesting that some Nigerians were reducing usage or disconnecting entirely.

Broadband penetration also remained below government targets, reaching 53 per cent by January 2026 despite a goal of 70 per cent under the National Broadband Plan 2020–2025.

The Minister of Communications, Innovation and Digital Economy, Bosun Tijani, has maintained that current investments will improve connectivity and digital access over time.

“The only country that is also investing in an additional 3,700 towers for rural areas, which means we can now bring online about 20 million Nigerians that are currently unconnected at all,” Tijani said.

He also described digital public infrastructure as critical to improving public service delivery and strengthening citizen engagement.

“DPI is not just an evolution of e-government — it is a new form of social infrastructure, one that offers a modular, open, and interoperable foundation for innovation to thrive and public services to scale,” he said.

Despite these assurances, many consumers continue to report concerns over network quality, slow internet speeds and unexplained data depletion.

In April 2026, the NCC directed telecommunications operators to compensate subscribers affected by verified service failures through airtime credits.

The commission said the measure formed part of broader efforts to improve accountability and restore consumer confidence in the sector.

For many Nigerians, however, the central concern remains unchanged as the cost of staying connected continues to rise while reliable internet access remains difficult to guarantee.

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