The rising cost of data subscriptions in Nigeria is hitting small and medium-sized enterprises (SMEs) hard, with many now forced to rely on limited data packages to stay connected.
This development comes after the Nigerian Communications Commission (NCC) approved a 50% increase in telecom service charges — a figure lower than the 100% hike initially proposed by telecom operators, but still significant enough to stir public frustration.
Despite appeals from the Nigeria Labour Congress (NLC) and several advocacy groups to reverse the decision, the price adjustment has remained in place.
A report from Daily Trust highlighted the difficult situation for small business operators, many of whom describe the current costs as unbearable. Hassan Alabi, a Point of Sale (PoS) agent who uses a router for his business, shared how a N5,000 data plan on one of the major networks barely lasted a week. However, he mentioned finding some relief through a different service provider, citing features like rollover plans and data bonuses.
“Before, I used to buy 20gb for N5,500 but now it is N6,000 for 18gb but it still lasts one month and when I not able to finish it, it automatically rolls over and that is for Spectranet. The last time I loaded N5,000 on a major telecommunication internet provider on my router, it was not up to one week when it read finished,” he said.
Similarly, Olu Ojeniyi, owner of Bikita Studio, lamented the escalating costs. He disclosed that a data bundle he previously purchased for N2,000 per week now costs N9,000 for 15GB. He described the situation as financially draining, pointing out that internet users are being forced to limit their data usage because of the high rates.
“Subscribers deserve transparency, reliability and value for their hard-earned money but we can’t say we are getting value for our hard-earned money,” he remarked.
Speaking on the matter, Prince Sina Bilesanmi, National President of the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS), revealed that his group had raised concerns about the state of services during meetings that led to the approval of the price hike.
Bilesanmi expressed worries about the effect on both subscribers and the telecom industry’s workforce, warning of possible job losses.
“Directly or indirectly, over 60,000 might lose their jobs,” he stated.
He further noted that the group would keep a close watch on telecom providers to ensure promised service improvements are delivered. “The telecom operators said they have shipped in equipment to improve the quality of their services, so we are waiting,” Bilesanmi added.
According to data from the NCC, Nigeria recorded over 224 million active telecom subscribers by December 2023. MTN remains the largest player in the market, accounting for 38.79% of total users with more than 87 million subscribers. Airtel, Globacom, and 9mobile make up the rest, with 61 million, 13.9 million, and smaller shares respectively.
