The Nigerian Senate has taken a significant step towards addressing the growing concern of rising data costs in the country. On Wednesday, the Senate mandated its Committee on Communications to investigate the recent surge in data prices and recommend solutions for a more sustainable and business-friendly telecommunications sector.
The decision follows a debate on a bill sponsored by Senator Asuquo Ekpenyong, which highlights the financial strain the price hike has placed on millions of Nigerians, particularly young people who rely on affordable internet access for their livelihoods. The bill notes that the over 200% increase in costs has placed significant financial strain on millions of Nigerians.
Factors Contributing to High Data Costs
The bill identifies several factors contributing to the high cost of telecommunications in Nigeria, including:
– Poor Infrastructure: Unreliable power supply and inadequate infrastructure
– High Import Duties: Excessive duties on ICT equipment
– Multiple Taxation: Excessive regulatory charges and multiple taxation
– Security Concerns: Increasing operational risks and insurance costs due to security concerns
– Bureaucratic Bottlenecks: Slow business operations and innovation due to bureaucratic hurdles
– High Energy Costs: Unreliable national grid supply leading to high diesel and alternative energy costs
Resolutions and Recommendations
The Senate has resolved to ask the Federal Minister of Communications, Innovation, and Digital Economy to engage with telecommunications providers to review data costs and ensure fair and affordable pricing for all Nigerians.
Additionally, the Senate has passed a bill mandating the compulsory registration of citizens, aiming to overhaul Nigeria’s identity management system through the repeal and reenactment of the National Identity Management Commission (NIMC) Act. The bill seeks to establish a harmonized, cost-effective identity system that aligns with global best practices.
