Telecoms: Senate moves to probe rising data costs

Sharon EboesomiMarch 26, 20254 min

Sen. Ekpenyong lamented how service providers have increased data costs by about 200 percent, placing significant financial strain on millions of Nigerians.

Senate moves to probe rising data costs, demands urgent intervention in telecom sector
Sen. Asuquo Ekpenyong

The senate has directed its committee on communications to investigate the recent surge in the cost of data services across the country and recommend measures to ensure a more sustainable and business-friendly telecommunications sector.

This resolution followed the adoption of a motion on “The urgent need to address the increased cost of data services in Nigeria” sponsored by Sen. Asuquo Ekpenyong (APC, Cross River south) during Tuesday’s plenary.

Presenting the motion, Sen. Ekpenyong raised alarm over the recent data price hike by telecommunications providers, describing it as excessive and burdensome.

According to him, service providers have increased data costs by as much as 200 percent, placing significant financial strain on millions of Nigerians, particularly young people who depend on internet access for their livelihoods.

He noted that Nigeria’s youth have fully embraced the digital economy, engaging in activities such as freelancing, digital marketing, e-commerce, content creation on platforms like YouTube, TikTok, and Instagram, software development, online education, and cryptocurrency trading.

Sen. Ekpenyong expressed deep concern that the high cost of fibre-optic internet services has made most Nigerians heavily dependent on mobile data. He warned that the sudden and steep increase in data prices not only threatens the economic survival of young Nigerians but also limits access to critical digital services.

He said, “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.”

Highlighting the broader issues plaguing Nigeria’s telecom sector, Ekpenyong identified several factors responsible for the high cost of doing business:

•Poor infrastructure and unreliable power supply

•High import duties on ICT equipment

•Multiple taxation and excessive regulatory charges

•Insecurity raising operational risks and insurance costs

•Bureaucratic bottlenecks hampering innovation

•The rising cost of diesel and alternative energy due to national grid failures

He called for urgent government intervention to protect young Nigerians and ensure affordable internet access remains a priority.

Sen. Victor Umeh (LP, Anambra central) while contributing to the debate, expressed worry over the growing burden the rising cost of data is placing on millions of Nigerians who rely heavily on internet access for business, education, and daily communication.

He described the development as worrisome, especially at a time when the country is pushing for a digital economy and increased participation of small and medium enterprises in the online space.

According to Umeh, the sharp increase in data prices threatens Nigeria’s digital growth and could stifle innovation, discourage investment, and widen the digital divide.

Following deliberations, the senate called on the federal ministry of communications, innovation, and digital economy to urgently develop a policy framework that guarantees affordable internet services for Nigerians.

Lawmakers further urged the federal government to address the harsh business environment in the ICT and telecommunications sectors to prevent further cost increases that could stall economic growth.

Additionally, the senate encouraged the establishment of tech hubs across the country offering free or subsidised internet access to young entrepreneurs, students, and innovators as part of efforts to support Nigeria’s digital economy.

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Sharon Eboesomi

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