Senate investigates rising cost of airtime, data services
BY PATRICK WEMAMBU
Rising from plenary Wednesday, the 10th Nigerian Senate has resolved to investigate the rising cost of airtime and data services in Nigeria. This is with a view to identifying factors driving these increases and propose solutions for a more sustainable and business-friendly telecommunications sector.
To be conducted by the Senate Committee on Communications, the investigation will, among other things, unravel measures towards addressing the broader challenges of ease of doing business in Nigeria – especially in the ICT and telecommunications sectors. This in addition should prevent further cost hikes that negatively impact economic growth in the nation.
Imploring the Ministry of Communications, Innovation, and Digital Economy to engage with telecommunications providers to review the recent price increases and develop a policy framework for affordable internet services in Nigeria, the Upper House directed the Federal Government to establish and support tech hubs nationwide – by providing free or subsidized internet access to young entrepreneurs, students, and innovators.
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Expressing concerns over the impact of the 200% increase in data costs on millions of Nigerians, particularly young people who rely on internet services for education, business, and innovation, Senator Asuquo Ekpeyong who sponsored the motion regretted;
“Young Nigerians have embraced the digital economy, leveraging the internet for various income-generating activities, including freelancing, remote work, digital marketing, social media management, e-commerce, online trading, software development, web design, mobile app creation, content creation on platforms like YouTube, TikTok, and Instagram, online education, professional skill development, cryptocurrency trading, and fintech innovations.”
Noting that fibre-optic internet services remain unaffordable for average young Nigerians, forcing many to rely on mobile telecommunications companies for internet access, the Cross River South parliamentarian charged that the sudden and substantial increase in data costs threaten economic survival and limit access to essential digital services.
Ekpeyong criticised the justifications provided by telecom operators for the price hikes – such as high operational costs and unfavourable exchange rates, stating that they are inadequate. Instead of addressing the root causes of the high cost of doing business in Nigeria, the burden is unfairly shifted to consumers, he rued.
“The high cost of data affects everyone in this country, including myself. But I am particularly concerned about how it impacts young men and women, who make up the most productive sector of our population. They rely on data to access resources that we, as a government, are not able to provide for them, and they use their creativity to contribute to national development,” he stressed.
Acknowledging that the high cost of doing business in Nigeria is driven by multiple challenges, including poor infrastructure, unreliable power supply and road networks, the sponsor of the motion added that the challenges include high import duties on ICT equipment, multiple taxation and excessive regulatory charges on telecom operators.
Security concerns that increase operational risks and insurance costs with high cost of diesel and alternative energy sources were likewise identified.
Despite these challenges, however, the ranking legislator emphasised the need for urgent government intervention to ensure affordable internet access, particularly for young Nigerians, who are the backbone of the country’s digital economy.
Contributing to the motion, other lawmakers condemned the frequent increases in tariffs for digital services, including electricity and Pay-TV. They posit that these worsen economic hardship.
“We live in a situation where citizens have no means of seeking redress,” Sen. Victor Umeh stated, remarking; “DSTV has changed its tariffs three times in a short period. The same to electricity – you buy units, and within minutes, they are gone. Nigerians are suffering.”
In his remarks, Senate President Godswill Akpabio commended the motion’s sponsor and lawmakers for their contributions, stressing the importance of ensuring fair pricing in the telecommunications industry.
“This motion, when implemented, will not only benefit young people but also ensure that businesses are not forced to shut down due to high operational costs. Affordable internet access is critical for entrepreneurship, job creation, and national development,” he asserted.
