Digital subscriber decline in Nigeria: Despite the upsurge in telecommunications sector, the country experiences a loss of a million internet users over six months
Rising Smartphone Prices Pose Challenge to Internet Adoption in Nigeria
Nigeria's smartphone market is facing a significant challenge as prices for entry-level devices have risen sharply, making them unaffordable for many Nigerians. This affordability barrier is contributing to a decline in internet adoption, as evidenced by a loss of over one million internet users in the first half of 2025.
According to recent data, MTN Nigeria's smartphone penetration rose to 62.6% in H1 2025, with approximately 53 million smartphone users. However, the cost of entry-level smartphones like the Itel S24, Infinix Hot 50i, and Xiaomi Redmi A5 has increased by 25%, with prices now ranging between ₦200,000 and ₦220,000. Mid-range devices and high-end smartphones have also seen price increases, making them out of reach for most people.
Economic pressures including currency devaluation, inflation, and global supply shortages are exacerbating the problem, stalling smartphone sales which dropped by 7% in the first half of 2025. Airtel Nigeria acknowledges this affordability issue and is partnering with manufacturers to reduce the cost of 5G-capable smartphones to improve adoption.
The decline in internet adoption is concerning, as it risks deepening the digital divide. Although Nigeria’s telecom sector is financially booming, with MTN and Airtel reporting soaring data revenues, the overall internet user base contracted slightly, from about 141.6 million users in January to 140.6 million in June 2025. This suggests that network availability and infrastructure alone cannot drive digital growth without affordable access to capable devices.
The digital divide is widening as a significant portion of the population cannot afford internet-capable smartphones, limiting their participation in digital services, social media, and broader internet use. Higher-volume data bundles witnessed even steeper increases following the data tariff hike, causing many subscribers to ration data for essential tasks only, curbing discretionary usage. By June 2025, new activations had slowed to a crawl due to sustained high data prices.
Data consumption per user is climbing sharply, but the pipeline for onboarding new internet users is thinning due to high costs. The National Identity Management Commission (NIMC) suspended National Identification Number (NIN) verifications in June 2025, halting new SIM activations across all networks.
As of June 2025, MTN Nigeria has 76.5 million internet subscribers, Airtel has 49.4 million, Globacom has 13.7 million, and 9mobile has 1.08 million. Despite this, telcos are witnessing increased data usage among their existing subscriber bases. However, the long-term sustainability of the sector's growth trajectory is being called into question, as low-income Nigerians are being priced out of digital inclusion.
In conclusion, while Nigeria’s telecommunications infrastructure and data service growth are robust, the increasing cost of smartphones is a major barrier preventing broader internet adoption, which risks deepening the digital divide. Efforts by operators like Airtel to make 5G devices more affordable are ongoing but have yet to fully offset the affordability challenges faced by many Nigerians.
- The increasing prices of mobile technology like entry-level smartphones such as the Itel S24, Infinix Hot 50i, and Xiaomi Redmi A5, influenced by economic pressures and global supply shortages, hinder the financial accessibility for general-news consumption among Nigerians.
- With the decline in internet adoption due to the unattainable costs of smartphones, there is a growing concern about the widening digital divide in Nigeria, as many individuals are unable to participate in digital services, social media, and broader internet use, despite the robust telecommunications infrastructure and data service growth in the country.
