Senate has mandated its Committee on Communications to conduct an investigation into the factors leading to over 200 percent increment in the cost of data and proffer solutions for a sustainable and business-friendly telecommunications sector.
The Red Chamber also urged the Federal Ministry of Communications, Innovation and Digital Economy to engage telecommunication providers to review the recent increase in data cost and ensure that pricing remains fair and affordable for all Nigerians
It called on the Federal Ministry of Communications, Innovation and Digital Economy to develop a policy framework for affordable internet services in Nigeria;
In addition, it encouraged the federal government to establish and support technology hubs by providing free or subsidised internet access to young entrepreneurs, students and innovators.
The Red Chamber also called for immediate action to address the challenges of doing business in Nigeria, particularly in the ICT and telecommunications sector, to prevent further cost increase that negatively impacts economic growth.
The resolutions followed the consideration and adoption of a motion titled: “Urgent need to address the increased cost of Data Services in Nigeria” sponsored by Senator Ekpenyong Asuquo (APC – Cross River South).
Asuquo, had in his lead debate, noted that telecommunications providers in Nigeria recently increased the cost of data services by as much as 200 percent, saying the move had placed significant financial strain on millions of Nigerians, “especially young people who rely on the internet for their livelihood.”
According to him, young Nigerians have embraced the digital economy by 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 skills development, cryptocurrency trading and financial technology innovations, and customer support services among others.”
He said the Senate is concerned that fiber-optic internet services have remained unaffordable for the average young Nigerian, “leaving them heavily dependent on mobile telecommunications companies for internet access and that the sudden and substantial increase in data cost threatens their economic survival and limits access to critical digital services.”
He said the Senate is also concerned that the reasons adduced by telecom providers for the data price hike, “including high operational cost 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.”
He noted that the Senate is aware that the high cost of doing business 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.
He also listed 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 as impediments to the ease of doing business in the country.
He said he is of the view that urgent government intervention is required to ensure that affordable internet access remains available to all Nigerians, particularly the youth, who are the backbone of the digital economy.
Senators in their contributions supported the motion and approved the prayers when they were put to voice vote by the Senate President, Godswill Akpabio who presided over plenary.
