Senate condemns data price hike, urges FG to intervene

The Senate on Wednesday condemned the increase in the cost of mobile data and called on the federal government to engage telecommunications providers in order to review the pricing and make internet services more affordable for Nigerians.

The upper chamber also urged the Federal Ministry of Telecommunication and Digital Economy to develop a policy framework to ensure sustainable and fair pricing for internet services across the country.

The resolution followed a motion sponsored by Cross-River South Senator, Asuquo Ekpenyong, during the plenary.

Many Nigerians depend on internet services for business, education, and employment. However, they have been expressing concern over the sudden increase in the price of mobile data charged by major telecommunications providers operating in the country.

In January, telecommunications companies requested a 100 per cent increase in tariffs basically because of the rising operational costs and an unfavourable exchange rate.

Although the Nigerian Communications Commission (NCC) approved a 50 per cent adjustment, the increase has significantly impacted millions of users.

The motion

During the plenary, Mr Ekpenyong expressed concerns that the hike is imposing a heavy financial burden, particularly on young Nigerians who rely on digital platforms for income generation.

“Young Nigerians have embraced the digital economy, leveraging the internet for various income-generating activities, including freelancing and remote work, digital marketing and social media management, 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, cryptocurrency trading and financial technology innovations, and customer support services amongst others,” he said.

The senator expressed concern that the increase in the data has contributed to poor infrastructure, multiple taxation, high import duties on ICT equipment, and unreliable power supply.

He stated that he is “also concerned that the reasons provided by Telecom providers for the data price hike, including high operational costs, and unfavorable 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, high import duties on ICT equipment and other essential business tools, multiple taxation and excessive regulatory charges on telecom operators, security concerns that increase operational risks and insurance costs, bureaucratic bottlenecks that slow down business operations and innovation, and the high cost of diesel and alternative energy sources due to unreliable national grid power supply.”

Ekpenyong’s demands

In the motion, Mr Ekpenyong demanded that the ministry of telecommunication and digital economy engage with network operators to review data pricing and ensure affordability.

He requested that the Senate should encourage the federal government to establish tech hubs across the country, providing free or subsidised internet access for young entrepreneurs, students, and innovators.

He called for an investigation into the increase by urging the Senate Committee on Communications to investigate the circumstances behind the high data prices and recommend sustainable solutions.

Mr Ekpenyong also urged the Senate to encourage the federal government to address issues affecting the ICT sector, including multiple taxation, high energy costs, and regulatory bottlenecks.

Debate

Most of the senators supported the motion during debate.

Titus Zam (Benue North-west) who seconded the motion said he supported the motion including its prayers.

Victor Umeh (LP, Anambra Central) decried the trend of increasing prices across different sectors, including electricity and cable TV subscriptions.

He also noted that the cost of telecommunications services is affecting all Nigerians, not just the youth.

“Everything has gone up. In the communication sector, if you buy airtime or data, within minutes you’ll be out of data . If we continue to live under this condition where the citizens have no other way of seeking redress…..Even DSTV has changed their tariff three times, the same thing with electricity. If you buy energy, within minutes you’re out of units.

“Not only young people, everybody makes use of internet and everybody is suffering from it because there’s nobody who doesn’t use internet, even here in the chamber. And something has to be done to regulate this absurd increase. Nigerians cannot afford this high increase. Something must be done to check the incessant increase,” he said.

Sadiq Umar (Kwara North) also emphasised the impact of rising costs on everyday life.

“The high cost of data affects everybody, including my humble self. It is very important we ensure that these service providers make life easier for the young,” he said.

Resolution

When the Senate President, Godswill Akpabio, put the motion to vote, it was overwhelmingly supported.

“It will not only affect the young people, it would also affect the elders and it will also ensure that people are not thrown out of business because those who are self employed utilise data,” Mr Akpabio said after the motion was adopted.