The Nigerian Communications Commission (NCC) recently announced the approval of a 50 per cent increase in telecom service tariffs in Nigeria, Weekend Hope spoke to Nigerians about the impact of the increase on individuals, businesses and the economy as a whole.
Excerpt:

By Akinnodi Francis, Ondo, Kayode Olabanji, Okitipupa, Precious Owolabi,Ekiti

|

The recent hike in telecommunications data prices in Nigeria, though not entirely unexpected due to ongoing speculations, has been met with shock due to the alarming rate of increase.

Imagine data costs surging by 200 percent or more—this drastic rise is deeply concerning, as internet access has become an essential part of daily life for individuals and businesses alike. From young people to the elderly, and from small enterprises to government institutions, many rely heavily on data services for communication, work, and operations.

Given the critical role of affordable internet access, it is imperative for the federal government and telecommunications companies to review this price hike. A balanced agreement should be reached to regulate data costs, ensuring they remain accessible and sustainable for all.

-Mr Akintayo Abiodun

A staff at a Microfinance firm

The increase was unavoidable, but it was excessive. While the announced tariff hike was 50 percent, the recent telecommunication companies adjustment turned out to be much higher. Personally, I find this disappointing, they should have stuck to the originally stated 50percent increase.

That said, when comparing Nigeria’s top three telecommunications providers, MTN still stands out as arguably the best in terms of network quality.

Miss Olawole Testimony

Student

The hike has really affected my business. Patronage, particularly that of data subscription has been very low. I do not sell half of what I used to sell before the implementation. Apart from that, people also complained that the quality of data has reduced drastically. They said it does not last as  it used to be. We call on government to do something about it.

Olasunkanmi Omowunmi

PoS operator

To be honest, I haven’t really noticed because the poor network hasn’t even given me a chance to pay attention.

At this point, no price hike could possibly match the quality of service these telecom companies are providing or rather, failing to provide. The internet is terrible, call quality is poor, and even getting a call to connect takes multiple attempts.

I believe Nigerians should push back against this, but we rarely do. Instead, we simply adapt to whatever is thrown at us. All I can do is express my frustration it’s been both infuriating and, somehow, strangely routine.

– Mr Ogundare Ebenezer, Business development manager

The hike has drastically reduced my sales. Since the price of 1GB data rose to ₦800, customers had stopped coming to my shop for it.

This is an additional burden. We are already struggling economically, and now the telecommunication sector has joined in making life harder. It is unfair.

Miss Tola Iwalere, Telecommunication agent

The higher costs could limit access to data and calls for low-income Nigerians, students, and rural populations, potentially impacting their ability to utilise essential services like education and healthcare online.

It could pose challenges for small businesses relying on mobile connectivity for operations and customer interaction.

 Stella Fatutu Student

The increase would harm businesses that depend on online transactions, marketing, and customer engagement.

Small businesses and startups would face challenges in digital marketing, e-commerce, and online services. A decline in the number of people who can afford data could also reduce telecom companies’ profits, potentially leading to job losses and slowing down the economy.

While the government may generate more revenue from telecom taxes, this should not come at the cost of affordability. If prices continue to rise, the country could experience a slowdown in digital adoption and economic growth.

Mr. Eric Olawale, Chairman, CEO of Edico legit

The tariff hike will significantly impact Nigerians by making essential communication services less affordable, particularly for low-income individuals, potentially widening the digital divide, and placing further strain on already struggling household budgets due to the country’s high inflation rates.

However, Telecom companies must justify the increase with investments in infrastructure, so that it can lead to improved services.

Kingsley Adenegan, a businessman