The Nigerian Senate Is Demanding A Review Of The 50% Telecom Tariff Increase Due To Escalating Data Costs

The Nigerian Senate is calling for a review of the recent 50% increase in telecom tariffs, due to rising cost of data and its impact on millions of Nigerians. The move came as complaints poured in about the financial pressure brought on hundreds of thousands of young people whose lives depend on cheap web access for daily living and livelihood.

Senate Senator Asuquo Ekpenyong on Wednesday tabled a motion, “Urgent Requirement to Address the Rising Cost of Data Services in Nigeria”, describing the over 200% increase in data prices as rendering internet services in the country unaffordable to many people. The motion garnered strong support from lawmakers, who called for immediate stoppage of telecom tariff hikes which would be disruptive in the digital lives of Nigerians, especially the youth.

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Nigeria’s young people are turning to the digital economy for ways to generate income, Ekpenyong said, e-commerce, software development, videos posted online through youtube and its successor TikTok, education via internet platforms and cryptocurrency trading. However, with telecom tariffs at 50% increase, many are having trouble in the face of these gains.

It has directed the Federal Ministry of Communications, Innovation and Digital Economy (FMCIDE) and telecom operators to conduct a 50% review of telecom tariffs for the benefit of all Nigerians and sought the ministry’s policy direction on affordable internet access for all Nigerians. Members of the Senate also called for the federal government to set up tech hubs across the country to provide free or subsidised internet access to students, entrepreneurs and innovators.

The Senate noted with concern the impact of inflation on businesses in Nigeria, saying that although telecom firms in particular are also grappling with economic challenges, affordable internet access is a must for the survival of the country’s digital economy.

The Nigerian Communications Commission (NCC) recently approved a 50% increase in telecom tariffs, saying the move would help sustain investments in telecoms. Telecom operators like MTN, Glo, Airtel and 9mobile said the hike was necessary because of rising operating costs and the impact of inflation. Association of Licensed Telecommunications Operators of Nigeria (ALTON) claimed the move was necessary to establish a long term sustainability of investments in telecommunications in Nigeria. ALTON chairman Gbenga Adebayo said without such adjustment, nil investment in infrastructure would have a severe impact on provision of high quality services.

In the face of such appeals, however, customers have expressed concern over poor service provision. They say that before any tariff hike can be implemented, network quality should be at least considerably improved. Problems like slow internet connection, dropped calls, unusual amount of data usage and poor customer services are among the complaints.

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The Federal Competition and Consumer Protection Commission (FCCPC) has also intervened in the matter by advising telecom operators to address these service problems and ensure the increased revenue is used prudently to develop new infrastructure and improve service delivery. Any tariff adjustment must have a tangible benefit for consumers, ” it said.

The Nigerian Senate, weighing the benefits and drawbacks of the tariff increase in the interests of consumers while at the same time advising telecoms to review their tariffs by 50%, is not wavering in its call for telecom tariffs to be reviewed to help ease the financial burden on its citizens.

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