MTN Nigeria Communications Plc and Airtel Nigeria, have both increased the prices for their internet data services.
The telecommunication firms increased their data cost by about 10 per cent.
BizWatch Nigeria understands that the 10 per cent hike is still less than the 40 per cent increase in the cost of calls, SMS, and data, which was initially proposed by telecommunication companies under the aegis of the Association of Licensed Telecommunication Operators of Nigeria (ALTON).
In a letter addressed to the Nigerian Communications Commission (NCC), the telecom companies said that there had been a 40 per cent increase in the cost of doing business in the nation, which necessitated the proposed increase in services.
The letter read, “Given the state of the economy and the circa 40 per cent increase in the cost of doing business, we wish to request for an interim administrative review of the mobile (voice) termination rate for voice; administrative data floor price, and cost of SMS as reflected in extant instruments.”
Reacting to the proposed increment, the Minister of Communications and Digital Economy, Isa Pantami, during the inaugural meeting of the Presidential Committee on Excise Duty for the Digital Economy Sector in Abuja, has stated that with the increase in operating costs due to inflation and rising diesel, among others, there were more than 15 attempts to increase the price of telecommunication services within three years, which he kicked against.
“In spite of the contributions and achievements of the sector, we have been recording some challenges coming up from time to time that if care is not taken these challenges could be a barrier to the development of this sector in the next few years to come. One of them is the issue of excessive taxation and sometimes, multiple taxations in the sector,’ the minister noted.
Meanwhile, the increase in data by MTN and Airtel, have threatened the Federal Government’s plan to make internet services cheaper in the coming years.
Going by the Nigerian National Broadband Plan 2020 to 2025, the President Muhammadu Buhari-led government eyes N1000 for 1Gb by 2023 and N390 for 1Gb by 2025.
