High Data Cost: Senate Mandates Minister To Engage Telecom Firms On Price Review

* Probes reasons given for increasing tariff 

Sunday Aborisade in Abuja 

The Senate has mandated the Minister of the Federal Ministry of Communications, Innovation and Digital Economy, Dr. ‘Bosun Tijani, to engage with telecommunications providers in the country in order to review the recent increase in data costs.

The red chamber also asked the minister to ensure that pricing remains fair and affordable for all Nigerians

The upper legislative chamber gave the mandate as part of its resolution passed after considering a motion titled ‘Urgent Need to address the increased cost of Data Services in Nigeria’ moved by Senator Asuquo Ekpeyong, representing Cross River South Wednesday.

The Senate specifically called on the Federal Ministry of Communications, Innovation and Digital Economy to develop a policy framework for affordable internet services in Nigeria.

It encouraged the Federal Government to establish and support tech hubs across the country by providing them with free or subsidized internet access to young entrepreneurs, students and innovators.

It also mandated its Committee on Communications to conduct an investigation into the factors driving the high cost of data and proffer solutions for a sustainable and business-friendly telecommunications sector.

It called for immediate government action to address the challenges of doing business in Nigeria, particularly in the ICT and telecommunications sector, to prevent further cost increases that negatively impact economic growth

Ekpenyong had, in his motion, noted that telecommunications providers in Nigeria have recently increased the cost of data services by as much as 200%, a move that has placed significant financial strain on millions of Nigerians, especially young people who rely on the internet for their livelihood.

He lamented that young Nigerians have embraced the digital economy, leveraging the internet for various income-generating activities.

The senator also said the youths have embraced freelancing and remote work;  digital marketing and social media management; e-commerce and online trading; software development, web design, and mobile app creation, among others.

He also said most youths are into content creation on YouTube, TikTok and Instagram, online education and professional skill development, as part cryptocurrency trading and financial technology innovations, and customer support services amongst others.

Ekpeyong expressed concerns that fibre-optic internet services remain unaffordable for the average young Nigerian, and leaving them heavily dependent on mobile telecommunications companies for internet access.

He noted with regret that the sudden and substantial increase in data costs threatens their economic survival and limits access to critical digital services.

He said: “Reasons provided by telecom providers for the data price hike, including high operational costs, and unfavourable exchange rates are untenable and appears that instead of addressing the root causes of the high cost of doing business in Nigeria, the burden is being unfairly transferred to end users.

“The high cost of doing business in Nigeria is driven by multiple challenges, including poor infrastructure, unreliable power supply and road networks.

“The urgent government intervention is required to ensure that affordable internet access remains available to all Nigerians, particularly the youth, who are the backbone of Nigeria’s digital economy.”