50% Tariff Hike: Senate urges telcos to reduce data cost

• The Senate has urged telecommunications companies to reduce the cost of data and other internet-related services
• It said the hike in costs placed significant financial strain on millions of Nigerians, especially young people who rely on the internet for their livelihood
• The Senate stated that data cost reduction would improve access to digital services

The Senate has called on the Federal Ministry of Communications, Innovation and Digital Economy to engage telecommunications operators to consider reviewing the costs of data and other internet-related services for their subscribers.

The Senate also asked the ministry to develop a policy framework for affordable internet services in Nigeria, adding that the government should establish and support tech hubs across the country that would “provide free or subsidised internet access to young entrepreneurs, students, and innovators.”

The upper legislative chamber stated this on Wednesday, March 26, following a motion on the “Urgent Need to Address the Increased Cost of Data Services in Nigeria” sponsored by Senator Asuquo Ekpenyong.

Ekpenyong stated that the over 200 per cent hike in costs had “placed significant financial strain on millions of Nigerians, especially young people who rely on the internet for their livelihood.”

“The Senate notes that young Nigerians have embraced the digital economy, leveraging the internet for various income-generating activities, including e-commerce and online trading software development, web design, and mobile app creation, content creation on YouTube, TikTok, and Instagram, online education and professional skill development and cryptocurrency trading.

“Concerned that fibre-optic internet services remain unaffordable for the average young Nigerian, leaving them heavily dependent on mobile telecommunications companies for internet access and the sudden substantial increase in data costs threatens their economic survival and limits access to critical digital services.

“Aware that the high cost of doing business in Nigeria is driven by multiple challenges, bottlenecks that slow down business operations and high cost of diesel, (the Senate) believes that urgent government intervention is required to ensure affordable internet access remains available to Nigerians, particularly the youth, who are the backbone of Nigeria’s digital economy,” the motion read.

Data cost reduction would improve access to digital services

The motion was unanimously endorsed by Senators at the plenary, which also had the President of the Senate, Senator Godswill Akpabio, in attendance.

Akpabio stressed that implementing the motion would ensure improve access to digital services and help budding entrepreneurs thrive, which in turn would boost revenue and profits.

Telcos hiked data and call prices

Recall that telecommunications companies in Nigeria hiked costs of data and airtime plans following the approval of a 50 per cent tariff increase by the Nigerian Communications Commission (NCC).

The increase, especially by MTN Nigeria, sparked outrage from Nigerians, resulting in the trend of ‘from 2k to 6k’ across social media platforms.

The telcos cited rising operational costs and the need to expand infrastructure for improved service delivery.

Telecom tariff adjustment to save sector from stagnation – ATCON

Meanwhile, TheRadar earlier reported that the Association of Telecommunication Companies of Nigeria (ATCON) said telecom tariff adjustment is necessary to save the sector from stagnation.

ATCON president, Mr Tony Emoekpere, noted the concern of Nigerians toward the proposed hike in tariff, especially with the state of the economy, but stressed the long-term benefits of the adjustment to the sector and the future of Nigeria’s digital economy.