Telecom operators in Nigeria, including MTN, Airtel, Globacom, and other Internet Service Providers, are witnessing record growth in data usage across their networks, driving the need for increased investment in capacity expansion.
According to the latest figures from the Nigerian Communications Commission, data consumption rose to 1.15 million terabytes in August, up from 1.13 million terabytes in July — the highest monthly usage recorded so far, continuing the steady growth trend observed since January 2025.
However, the surge in data usage — largely concentrated in urban centres such as Lagos and Abuja — is straining the existing infrastructure of telecom operators, resulting in intermittent declines in internet service quality.
In its latest network capacity report, the NCC acknowledged that operators’ current capacity is insufficient to meet the rising demand for data among Nigerians.
The commission’s investigation further revealed that issues such as dropped video calls, buffering during streaming, failed mobile transactions, and slow downloads stem from inadequate network capacity across operators.
Meanwhile, the Commission noted that the capacity constraints are limited to cities with high concentrations of heavy data users.
“Capacity restrictions are concentrated in urban zones; the impact on rural service is extremely low, reinforcing that this constraint is a localized issue tied to high-density areas,” the Commission added.
Earlier data from the National Bureau of Statistics showed that Lagos State hosts the highest number of internet users in Nigeria — a key factor behind the recent decline in service quality reported by subscribers in the state.
Users in Ogun, Kano, Kaduna, and the Federal Capital Territory are also affected by capacity constraints due to their large concentrations of internet users.
According to the NCC, telecom operators must ramp up investments to close the capacity gap, particularly in densely populated areas.
The Commission further urged operators to adopt a multi-pronged strategy centered on two objectives: “aggressively deploying 5G technology and optimizing the capacity of existing 4G (LTE) networks to enhance performance for all users.”
According to the latest financial reports of MTN Nigeria and Airtel Nigeria, data services have become the primary revenue driver for telecom operators in the country.
In the second quarter of 2025, MTN Nigeria’s data revenue surged by 85.6% to ₦701 billion, up from ₦377 billion in the same period last year.
Similarly, Airtel Nigeria recorded a 60.3% increase in data revenue, rising to ₦260 billion ($168 million) from ₦185.4 billion ($117 million) in Q2 2024.
Airtel Nigeria’s Chief Executive Officer, Dinesh Balsingh, acknowledged that the surging demand for data requires increased investment, adding that the company is already taking steps to expand its network capacity.
“Cities like Lagos are growing at lightning speed, more people, more businesses, more devices. We recognise that data is the new oxygen. That’s why we’re investing heavily in 5G and fibre to build a smart, scalable network that can carry the weight of Nigeria’s digital future,” he said.
MTN Nigeria also stated that it is intensifying investments to boost its network capacity in response to the rising demand for data across the country.
In the first half of 2025, the company invested ₦565.7 billion to accelerate network expansion — a 288.4 per cent increase in capital expenditure compared to the same period last year.
MTN explained that the sharp rise in capex, excluding lease payments, was essential to handle growing data traffic and enhance service quality for its more than 84 million subscribers.
