Business
THE International Telecommunications Union (ITU) says Nigeria stands out globally for its affordable mobile data costs.
The ITU said this in its recent Global System for Mobile Communications Association (GSMA) Report.
The News Agency of Nigeria (NAN) reports that the Report is titled ,”The Role of Mobile Technology in Driving Digital Economy in Nigeria”.
ITU also said Nigeria offers cost-effective connectivity services to data users nationwide with an average data cost of $0.38 for a gigabyte.
According the ITU, mobile data in Nigeria is the lowest in West Africa ,one of the lowest in Africa and the world generally.
“The cost in Nigeria is a per cent of GNI (per capita) .Its basic data-only package is the lowest in West Africa and well below the average across Africa,” ITU said.
According to the body,in comparison to other African countries, such as Kenya, Ethiopia and South Africa ,data costs are lower in Nigeria averaging $0.59 per gigabyte.
It said that Ethiopia has an average of $0.68 per gigabyte and South Africa $1.77 per gigabyte.
The ITU noted that the United States of America offers data rates at an average of $6 for a gigabyte.
Amid the country’s cost-friendly and competitive data rates, Nigerian telecommunications operators are currently advocating for a tariff increase.
It is to address the pressing challenges the sector is faced due to currency devaluation, inflation and the overall Nigerian economic downturn in the past months.
MTN Nigeria’s Chief Executive Officer, Dr Karl Toriola, in a recent interview, highlighted the diverse challenges associated with the Nigerian telecommunications industry.
“2024 was a very torrid year for the entire telecoms industry.
‘’We are the largest operators, so we were probably able to be a bit more resilient but it has been very difficult,” he said.
Toriola cited the major factors which contributed to the challenges of telecoms operations in 2024 ,including high cost of operations ,which according to him, now exceeds revenue.
He said that the difficulty was triggered by the currency devaluation and inflation which happened on a very rapid scale.
According to him, the tariff increase will enable telecom operators to build the capacity needed to provide quality services.
“What the tariff adjustment allows us to do is to continue to reinvest, because we need to build capacity, build resilience, put in additional generators and alternative power supply systems for stable and high-quality networks,” Toriola said.
The Federal Government has acknowledged the need for tariff adjustments, while also assuring Nigerians that any increase will be moderate, and not up to 100 per cent as the telcos had requested.
As discussions concerning the advancement of the telecom sector continue to unfold, stakeholders seek to balance the industry’s operational sustainability with consumer affordability, ensuring that Nigeria’s digital landscape thrives and is accessible to all Nigerians. (NAN)
A.I
Jan. 11, 2025
Tags: International Telecommunications Union
