Nigeria is among the most affordable countries in the world and among the cheapest in Africa for mobile data services, with an average data cost of $0.38 per gigabyte, the GSM Association reports.
South Africa and the United States have the highest prices in Africa and the world, respectively, at $1.77 and $6 per gigabyte. As a proportion of Gross National Income (GNI) per capita, Nigerian data charges rank among the lowest in Africa, according to the GSMA.
The body’s reports available to BrandSpur telecom and information news desk, support telecom operators’ calls for rate changes to alleviate financial strains endangering the industry’s viability.
According to the report, “The Role of Mobile Technology in Driving the Digital Economy in Nigeria,” Nigeria offers competitive data prices that are much lower than those of other African countries, including South Africa ($1.77 per gigabyte), Ethiopia ($0.68 per gigabyte), and Kenya ($0.59 per gigabyte). Nigeria has an edge in providing affordable connectivity because the average price in the US is $6 per gigabit.
In Africa, mobile data rates differ significantly by nation and area. Data expenses can include the price of mobile data as well as the price of purchasing, storing, and utilizing company data. In 2023, 1 GB of mobile data cost $3.31 on average in Sub-Saharan Africa and $0.86 in Northern Africa.
Nigerian telecom companies have been asking for pricing rebalancing and some legislative reforms so they can support the government’s goals for the digital economy. They have demanded that the Right of Way (RoW) charging and administration procedure be made simpler and better, and that it be standardized nationwide. They contend that the national maximum RoW fee of N145 per/LSQM, which was established by the National Economic Council (NEC), should be applied by all national and subnational government entities for the installation of fibre in all of Nigeria’s states.
For the RoW application process, each state should have a single point of contact, and the approval process should be digitalized and take no more than one month. Tax burden reduction and simplification for the mobile industry Regarding prices, keep in mind that the Nigerian Communications Commission (NCC) was encouraged to take into consideration raising tariffs to handle growing operating costs by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON).
Bismarck Rewane, CEO of Financial Derivatives, nodded in accord and stated that the country’s inflation will be lessened by the telecoms’ proposed pricing increase. He emphasized that the price of MTN shares increased by 10% to 220 and claimed that it would assist lower inflation since it boosts productivity. Investors have already taken it into account, Rewane reaffirmed, adding that they anticipate many positive surprises.
He went on to say: “But more important to think about is the fact that because of an increase in tariff and an increase in investment to make the industry sustainable, they’re going to see an increase in productivity, not directly but indirectly.
“Any increase in productivity and output is likely to allow inflation to moderate, which is the goal. So, we heard from the policymaker, Bosun Tijani, who was very clear that we want a sustainable sector. But we also heard from the regulator saying that we will hold these guys to quality of service.
“We also heard from the operators, MTN that they are all revving up. So in all, there are economic benefits because of increased output and productivity. Two, policymakers are aligned because they want this to lead to a moderation in inflation,” he added.
He also reiterated the minister’s statement that the tariff increase would not be 100% and stated that it was not a poor deal. He has this to say: “Will they get 100%? No, they will definitely not. We suspect that we are going to likely see something between 40 and 50% which is fair after so many years of static changes.”
