NIGERIAN INTERNET USER SURVEY.

Internet utilization is at it’s infancy in Nigeria despite the fact that progress have been recorded in
the industry. Infrastructure has remained the bane of not having internet accessible and
widespread. This is one of the many challenges that have made internet vendors operate at high
costs when providing internet access.
Currently, the Nigerian population welcomes the usage of Internet. This is hinged on the fact that
the population of users grew from 1.61million, in 2003 to 1.77million at the end of 2004. Projections
show a little over 2.2million users by the end of 2007. As impressive as the figures suggest, the
country’s internet user population of about 1.8million and a penetration rate of 1.4% showcase a
very low margin in a country with over 130million people. This penetration rate is lower than
Africa’s penetration rate of 1.5%, and is not anywhere near what obtains globally.
Information remains the driving force behind the utilization of the internet in the country. The age
groups of (18-24) years ranks highest when compared with other age groups. The sole reason for
this development is the personal needs of users. Cyber cafes have turned out to become good
access points for users to utilize. This has encouraged the growth of having access points outside
the home and work place, while clearly showing that the demand for internet is high.
Future developments in this area points to the fact that accessing the internet will not be
exclusively reserved by personal computers but may be adopted on multimedia mobile phones and
laptops. This would make the internet access completely ubiquitous in nature. Furthermore, it is
characterized by preferred access points, which have seen the VSAT in the lead, educational
levels of users, and income patterns.
A compelling factor that is driven by the choices consumers make is determined by the speed of
the connection. Though bandwidth speeds may vary and slow down to frustrating levels, it raises
questions about faster and cheaper means of accessing the internet. It would most likely be
underlined by the quality of service offered.
The daily use of the internet has become a pattern that is on the rise. The study gives a fresh
insight to this understanding because over 20 percent of internet users accessing the net daily.
Also, the average time spent by users is about an hour. Though internet subscription prices are
high, there are opportunities for other internet and online activities to be exploited. These
opportunities are beginning to shift for various purposes.
The challenge is to foster new dynamic ways of delivering access to a vast population and
equipping them with the right tools of meaningfully engaging and exploiting the potentials of the
internet. This will no doubt enhance the Nigerian economy when various models of online
transactions are deployed.
CONTENT
About eshekels……………………………………………………………..4
Acknowledgement…………………………………………………………..5
Overview……………………………………………………………………..6
Purpose of Document……………………………………………………....7
Scope of Study………………………………………………………..........8
Methodology…………………………………………………………………9

Chapter One
Characteristics of the Nigerian Internet User…………………………...10
Overall Demographics of the Nigerian Internet User…………………...12
Growth Prediction of Future Internet User Population in Nigeria……..14
Purpose of Internet Usage…………………………………………….....15

Chapter Two
Internet Network of Computer Chain……………………………………16
Access Point of Users in Nigeria…………………………………………17
Types of Internet Connection and Access Point……………………….19
Impact of Demography on Access Point………………………………..21
Most Used Internet Access Device in Nigeria………………………….23
Internet Points and Device Used………………………………………..24

Chapter Three
Internet Satisfaction Rating in Nigeria…………………………………….25
Satisfaction with Access Points……………………………………………26
Critical Choice of Internet Users in Nigeria……………………………….27
Critical Choice of Internet Service Preference and Demographics……29

Chapter Four
Internet Usage Pattern in Nigeria…………………………………… …..32
Usage Pattern by Access Point…………………………………………….33
Time Spent on Internet per Session………………………………… …..34
Monthly Expenditure Pattern in Nigeria…………………………………… 35
Price Perception…………………………………………………… ………36
Most Common Online Activities……………………………………… ……37
Trends in Online Activities…………………………………………………..38
Internet Telephony……………………………………………………..........39
Online Activities and Purpose of Usage…………………………………...40

Chapter Five
Information Sought Online…………………………………………………...41
E-Commerce/ Online Transaction…………………………………………..42
Reasons for not Engaging in e-Commerce/ Online Transaction………...43
Reasons for not Frequently Engaging in Online Transaction……………44
Preferred site for Online Transaction and Its Likelihood amongst………45
Non-Online Bankers………………………………………………………….45
Items most sought for Online………………………………………….........46
Cost Implication of e-Commerce / Online Transaction………………...…47
Online Transaction Demographics…………………………………….......48
E-Banking in Nigeria…………………………………………………...........49

Chapter Six
Internet Usage by Organizations
Access Point of Internet Users in Nigeria and Their Organizations’…….53
Internet Usage ………………………………………………………………...54
Most visited Websites………………………………………………………….55
Challenges of Internet Usage in Nigeria………………………………….….55
Challenges in the Industry for the Cyber Café Operators………………….56
ISP Affordability and Cyber Café Hourly-Charged Rates Nationwide…….57
Services Offered By Cyber Cafes and Their Pricing……………………….57

LIST OF CHARTS
Chart 1 Characteristics of the Nigeria Internet User……………………….11
Chart 2(i) Trends in Internet Usage (Population)……………………………..14
Chart 2(ii) Trends in Internet Usage (Rate of Penetration)…………………..14
Chart 3. Purpose of Internet Usage…………………………………………..15
Chart 4. Network of Computers “Chains”…………………………………….16
Chart 5. Access Point…………………………………………………………...17
Chart 6. Connection Types…………………………………………………..18
Chart 7 Type of Connection and Access Point…………………………….18
Chart 8 Internet Usage by Access Point and Educational Qualification…19
Chart 9 Internet User by Access and Access Point………………………..20
Chart 10 Access Point and Gender…………………………………………..21
Chart 11 Internet Usage by Access Point and Age…………………………22
Chart 12 Access Device…………………………………………………...….23
Chart 13 Access Points and Devices Used…………………………………24
Chart 14 Internet Satisfaction Rate In Nigeria….......................................26

COMPANIES MENTIONED
The Nigerian Economic Financial Crime Commission (EFCC),
Independence Corrupt Practices Commission (ICPC),
Yahoo, Goggle, Jamb online, Genevieve, Passion up, BBC, Manchester United, CNN, WAEC,
Hotmail, Christ Embassy.

EXECUTIVE SUMMARY
The report analyses the Nigerian internet market, its expected growth levels beyond 2007. While
outlining this growth to continue, it examines the trends and patterns internet usage would assume
to include among other things, online transactions. This would not only enhance the economy but
would foster latent opportunities that will develop from the new market. It’s a tool that will be used
to enhance innovation, service delivery and greater profits.