*Cross-sections of Nigerian telecoms consumers frown on high service tariffs amid low network connection speed and fast data depletion rate, urging the Mobile Network Operators to address infrastructure deficits to improve digital skills and financial services for fresh opportunities, job creation, and prosperity in the economy

Gbenga Kayode | 绿帽献妻

The Mobile Network Operators’ (MNOs) repeated calls for increments in product and service tariffs amid network issues, dropped calls, data depletion, and poor Internet connectivity have remained in the front burner of public discourse in the Nigerian telecoms industry.

Analysts have also submitted that the regime of higher, “punitive” data pricing with relatively poor Internet connectivity by all MNOs for end-user services may be counter-productive as the worrisome situation yet may deepen the digital divide in the country’s telecommunications ecosystem.

Dr. ‘Bosun Tijani, Honourable Minister for Communications, Innovation and Digital Economy,聽 and Dr. Aminu Maida, Executive Vice-Chairman and CEO of NCC

绿帽献妻 reports the network operators, again, recently requested the Nigerian Communications Commission (NCC) to give them the greenlight to further jack up their call and data service costs for telecoms consumers.

The MNOs had hinged their requests to increase services rates to high inflationary trend, high taxation, limited infrastructure limiting accessibility and affordability, coverage gap with areas without mobile broadband coverage, gender, urban-rural divide as mobile Internet adoptions, and insecurity of their critical telecoms infrastructure among others.

In a recent joint statement, both the Association of Licensed Telecoms Operators of Nigeria (ALTON) and Association of Telecoms Companies of Nigeria (ATCON) acknowledged that the current infrastructure deficits are affecting their members’ operations across the country.

The Associations said the MNOs still lack “access to essential telecommunications services due to a myriad of challenges.”

They listed such operational challenges to include multiple taxation and regulations, prohibitive Right of Way (RoW) charges, inadequate electricity supply, and vandalisation of critical telecoms infrastructure.

Consumers’ concerns about quality of service, quality of experience

The network operators’ long list of economic headwinds and other operational issues in the sector notwithstanding, several millions of Nigerian telecoms consumers are basically concerned about the MNOs’ Quality of Service (QoS), and their Quality of Experience (QoE) in accordance with the core mandate of the NCC.

A company executive, in Lagos, among several other concerned telecoms consumers, recently noted that he spends the average of N10,000 on data monthly.

The consumer, however, recalled how he was forced to switch from network to another during an important project that required connectivity recently.

Mobile phones consumers

Stating that his experience with the three major MNOs on Internet connectivity could likened to between the Devil and the deep blue sea, the company executive submitted the Telcos are all and the same in providing poor service offerings in recent times.

Kokumo Goodie, an Information Communications Technology (ICT) reporter, recently noted that data is central to the effective discharge of his duties.

Speaking with The Nation, the reporter-consumer needs data to research and interface with the office from anywhere but the cost of data seems to have hit the roof tops.

He recalled buying data of N2,500 through his bank account only for the data to get depleted in less than 24 hours of purchase.

Concerned about the unusual consumer experience with data usage, Goodie reportedly lamented:

“It is worrisome the rate at which data burns out.

“I don鈥檛 know what the Nigerian Communications Commission (NCC) is doing about it.

“The Mobile Network Operators (MNOs) are just taking Nigerians for a ride; yet they tell us Nigeria is one of the countries with the lowest data cost.”

He further disclosed that over the last two years or so, his cost for staying connected has skyrocketed.

The reporter explained: “When these things started, I was spending N1,000 on data every month. Now, I spend N20,000 a month because without data, I cannot function effectively.

“The impact of punitive data pricing is that it increases the number of digitally excluded.”

Likewise, Mercy Oluwanifemi, a 17-year-old school leaver, who wrote the last Unified Tertiary Matriculation Examination (UTME) has also been hard hit by poor connectivity.

The young telecoms consumer related her bitter service experience during the online tutorials she took for the UTME, particularly on data cost, connection speed and high depletion rate.

Oluwanifemi said: “I was spending an average of N2,000 for every online lecture.

“My parents were almost frustrated but they kept financing it because they knew I was not using the data for something else.

“Imagine if there was trust deficit between us, they would have abandoned the project midway because it was not easy for them because they are low income earners.”

These consumers’ experiences in the telecoms space are just a few of the total Internet Subscribers estimated at 164,368,292 of which 163,895,185 were Mobile Internet Subscribers in the country as of March 2024, according to the NCC鈥檚 data on Active Internet Subscriptions by Technology published on its corporate Web site.

Excellent consumer experience is major focus of NCC鈥檚 strategic roadmap 鈹�Dr. Maida

Earlier, Dr. Aminu Maida, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of NCC, in December 2023, had confirmed that the telecoms operators were actually seeking regulatory approval to increase tariffs in the ecosystem.

Dr. Maida, however, informed the visiting Executives of Nigerian Association of Information Technology Reporters (NITRA), Abuja Chapter, that the Federal Government 鈥渨ould not accede to Telcos鈥� request for tariff review鈥� until the network issues are improved upon to the benefit of telecoms consumers in the country.

In affirming the commitment of his leadership to consumer protection in the telecoms ecosystem, the EVC/CEO, during the commemoration of the 2024 World Consumer Rights Day (WCRD), held March 15 at the Commission’s Headquarters, in Abuja, FCT, again, restated the core importance of consumer protection, Quality of Service and Quality of Experience.

Represented in the occasion by Engr. Abraham Oshadami, Executive Commissioner, Technical Services at NCC, the EVC/CEO averred these regulatory ideologies have remained the core mandate of the telecoms Commission, noting that only 鈥渃onsumer satisfaction鈥� ensures economic growth.

Reeling off some of the NCC consumer protection initiatives and programmes in the Nigerian telecoms ecosystem over the years, Dr. Maida said: “With the Commission鈥檚 special interest and commitment to consumer Protection, we have proactively put in place consumer-centric initiatives to deal with first level complaints by the telecoms consumer.”

The telecoms sector industry regulator itemised some of the NCC initiatives to include the Consumer Complaints Management (CCM), through which various channels of lodging complaints were created, the NCC Toll-free line 622 available between 8:00a.m. to 8:00p.m. daily except on Sundays and Public Holidays, the Do-Not-Disturb (DND) Code 2442, for stopping unsolicited messages.

Maida noted others include the Consumer Portal-http://consumer.ncc.gov.ng, and the Commission Consumer X account @Consumersncc.聽 The Telecoms Consumer Assistance, Resolution and Enquiries (TELCARE), at Nnamdi Azikiwe International Airport, in Abuja, an additional platform to enhance awareness of the Commission鈥檚 activities, make enquiries on consumer complaints and also for advocacy on any thematic telecom issues or concern.

The NCC Chief further said: “One major focus area of the strategic roadmap of the Nigerian Communications Commission鈥檚 current Management is the Consumer,” adding, that his leadership of the telecoms sector regulatory Commission would focus on Quality of Service and excellent consumer experience.

Sub-Saharan Africa has most expensive mobile data prices: WEF Report

The Worldwide Mobile Data Pricing 2021 report by World Economic Forum (WEF) indicated that Sub-Saharan Africa has the world鈥檚 most expensive mobile data prices, inevitably widening the 鈥渄igital divide鈥� between the world鈥檚 Internet haves and have-nots.

A recent report also showed the World Bank has warned that lack of digital access of millions of poorer households might worsen income inequality over the next generation.

However, it is submitted that access to affordable Internet is, therefore, necessary to avert this.

Data pricing and consumers鈥� digital banking experience

It was gathered that at the climax of the of long-drawn disagreement between the Nigerian Deposit Money Banks (DMBs) and telecoms operators over the former’s N200 billion debt from the Unstructured Supplementary Service Data (USSD), Group Chief Executive Officer (CEO) of GTBank Holding Company, (GTCO) had observed the high cost of data in Nigeria.

Agbaje was reported to have stated that data tariff are too high, urging the Telcos to reduce costs of connectivity to advance digital banking and consumer experience in the West African country’s telecoms ecosystem.

The bank’s GCEO faulted the MNOs’ USSD technology, the value of which his financial institution has reduced by 22 percent, describing it as old vis-a-vis the advancement in modern technologies.

Agbaje equally contended instead of USSD and its attendant mounting debts with the banks, telecoms companies should reduce聽 data prices to enable more聽 customers to embrace Internet Banking.

绿帽献妻 recent checks have confirmed Agbaje’s submission on the Telcos’ probably deploying ageing USSD technology in the country.

It was found that GTBank Limited, among other commercial banks and FinTechs, had wrongly debited consumers the N6.98 per USSD “more than once per transaction”.

Some other telecoms consumers have also complained of receiving between seven and 10 USSD-related bank alerts for “just a banking transaction”.

The GTBank’s Group Chief Executive reportedly, has attributed the reason for this poor performance to high data tariffs in Nigeria.

鈥淭he N6.98 charge is a punitive cost and most people do not want to pay that just to use the USSD. That鈥檚 why it has stopped growing,” said he.

Similarly, Tayo Oviosu, Founder and CEO of Paga, a payments and financial service firm in the Financial Technology (FinTech) space, at the recent 15th Anniversary of the company, in Lagos, noted the current data costs being charged by the MNOs are too high.

Oviosu rather urged the telecoms firms to lower the cost and tap into the opportunities that would flow from the lower access cost for digital tech to consumers.

FMCIDE Minister and Telcos’ submissions on data tariff increments

In his remarks on the calls for reduction of data costs, Dr. ‘Bosun Tijani, Honourable Minister for Communications, Innovation and Digital Economy (FMCIDE) and telecoms companies, however, seem to not agree with both individual and corporate telecoms consumers on the current “punitive” high data tariffs.

Tijani, in a recent television interview, reportedly said: “People talk about data being expensive, but it is still one of the cheapest in the world.

“Of course, we know how important it is to our people. And we need to continue to look for ways to improve the quality.

“But we want to also ensure that Broadband penetration in Nigeria is in the critical parts of the country.”

Aligning the group’s position with the Minister’s, it was gathered Tony Izuagbe, President of the Association of Telecoms Companies of Nigeria (ATCON), also said the cost per gigabyte (GB) of data in Nigeria is about N250.

Izuagbe contended that when the cost of operations and other expenditure are considered, the MNOs are left without a considerable profit margin.

The ATCON Chief stated: “The cost per gigabyte of data in Nigeria is about N250.

鈥淏y the time you look at the expenses incurred in maintaining a base station, you will discover that revenue will not be enough to cover them.”

He further explained the challenges of inflation are affecting network operators.

“The cost per gigabyte of data in Nigeria is about N250. By the time you look at the expenses incurred in maintaining a base station, you will discover that revenue will not be enough to cover them.

鈥淭his excludes co-location and infrastructure (sharing) services. By the time they mark up their charges, the operators will also be suffering,” Izuagbe noted.

The average cost for one gigabyte of mobile data in Nigeria is $2.221, report said.

It is also argued though this is relatively expensive within the region, as several other African countries fall within the range of $0.61 to $0.93 per GB, including in Libya, Ghana, Somalia, Morocco, Tanzania, Sudan, Kenya, and Egypt.

Digital economy and MNOs’ investments in Broadband infrastructure

In a recent World Bank assessment of the country digital ecosystem, Nigeria is said to have captured only a fraction of its digital economy potential.

The global lender reported the West African country would need to make strategic investments to develop a dynamic, transformative digital economy in line with President Bola Ahmed Tinubu administration’s agenda.

The Nigeria Digital Economy Diagnostic as well submitted that with improvements in digital connectivity, digital skills, digital financial services, and other core areas of digital development, Nigeria can fully unleash new economic opportunities, create jobs and transform people鈥檚 lives.

Stressing the country is well-positioned to develop strong digital economy, Isabel Neto, World Bank Senior Digital Development Specialist, said: 鈥淎s the biggest economy in Africa with one of the largest populations of young people in the world, Nigeria is well-positioned to develop a strong digital economy, which would have a transformational impact on the citizenry.

鈥淭hrough innovations and investments, the Nigerian economy can harness digital data and new technologies, generate new content, link individuals with markets and government services, and roll out new, sustainable business models.鈥�

Telcos to NCC: Telecoms requires substantial investments in network expansion, tech upgrades

Perhaps in a move to improve the quality of their product and service offerings to telecoms consumers, the Association of Licensed Telecoms Companies of Nigeria and ATCON, in a joint statement, again, urged the Federal Government and NCC as the industry regulatory Commission, to allow the MNOs activate cost-reflective tariffs in the ecosystem.

The statement also noted: “ALTON and ATCON reiterate that telecommunications infrastructure development requires substantial investments in network expansion, maintenance, and technology upgrades.”

The two industry Associations also argued despite economic challenges in the economy, the telecoms sector industry remains the only yet to review its general service pricing framework upward in the last 11 years, primarily “due to regulatory constraints”.

Going forward, both ALTON and ATCON, therefore, urged the Federal Government to facilitate “a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers鈥� affordability with operators鈥� financial viability.”

Against the backdrop of their litany of stated operational challenges, therefore, Associations have sought the protection of assets and network infrastructure.

They equally implored the Nigerian Government for legislation that designates telecommunications infrastructure as part of Nigeria’s Critical National Infrastructure (CNI).

Besides, ALTON and ATCON have advocated the sustenance of a culture of independence in the regulatory landscape to safeguard against “undue influence and unwholesome incursion” into the Nigerian Communications Commission’s domain.

According to them, doing this will inspire trust in the telecommunications sector and encourage investments.

The statement added: “Regulatory neutrality and independence are crucial to ensuring a thriving telecommunications sector.

鈥淲e reaffirm our commitment to working collaboratively with the government to address the challenges facing the telecommunications industry in Nigeria.

“By fostering a conducive regulatory environment, prioritising infrastructure development, enhancing security measures, and facilitating pricing adjustments, the government can unlock the full potential of Nigeria鈥檚 telecommunications sector, driving economic growth and societal development.”

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