The International Telecommunications Union (ITU) has rated Nigeria as the country with the lowest mobile data costs in West Africa.
This accolade was further supported by a recent report from the Global System for Mobile Communications Association (GSMA). The report highlighted Nigeria’s affordability, with an average cost of $0.39 per gigabyte, making it one of the cheapest globally and across Africa.
In comparison to other African countries, Nigeria outperforms nations like Kenya, Ethiopia, and South Africa, where data costs are $0.59, $0.68, and $1.77 per gigabyte, respectively. The ITU’s report also noted that Nigeria’s data costs, as a percentage of Gross National Income (GNI) per capita, are significantly lower than the regional average. However, despite its affordability, the Nigerian telecommunications industry faces mounting economic pressures.
Telecom operators in Nigeria have called for a tariff increase to counter the effects of inflation, currency devaluation, and rising operational costs. MTN Nigeria’s CEO, Dr. Karl Toriola, recently described 2024 as a challenging year for the industry, citing unsustainable operational expenses that have begun to surpass revenues. He emphasized the urgent need for tariff adjustments to maintain service quality and ensure the sector’s sustainability.
The Federal Government has acknowledged the industry’s plight and the need for moderate tariff increases. During a stakeholder meeting, Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, stated that the government seeks to balance protecting consumers while ensuring that telecom operators can continue to invest in the sector. He assured Nigerians that any tariff hike would be modest.
As discussions on tariff adjustments progress, stakeholders aim to secure the long-term growth of Nigeria’s telecommunications sector. The goal is to maintain Nigeria’s reputation for affordable connectivity while addressing the industry’s economic challenges, ensuring a robust and accessible digital economy for all citizens.