Published On: Wed, Mar 22nd, 2017

Economic troubles drive Nigeria internet adoption down

internet uptakeLAGOS, (CAJ News) – THE decline in internet subscriptions in Nigeria has been blamed on the West African country’s prevailing economic challenges.
Latest data released by the Nigeria Communications Commission (NCC), the industry regulator, show that internet subscriptions stood at 91,3 million in January, representing a year-on-year contraction of 4,7 percent.
First Bank Nigeria Quest, the market analysts, said given that mobile internet is still considered a luxury, particularly for low income earners, internet subscription had experienced steady yearly contraction over the past several months.
“This mirrors the effect of the current macro challenges on consumers’ spending patterns,” The FBN entity stated.
The firm highlighted another reason for the slide in internet subscriptions was the clampdown on unregistered SIM cards by the industry regulator.
In January, MTN secured the highest number of internet subscriptions via GSM, representing 34 percent of the total.
However, the operator has lost over 7 million internet subscribers,compared with the corresponding period of the previous year.
On the other hand, Globacom, MTN’s closest competitor, secured the second largest subscriptions in January, and accounted for 30 percent of the total.
Meanwhile, while internet subscriptions have dropped, NCC figures density of 49,3 percent in a population estimated at 185 million, placing Nigeria well above the African average of around 16 percent as estimated by McKinsey.
CAJ News

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