On Wednesday, the Nigerian Senate directed its Committee on Communications to investigate the recent surge in the cost of mobile data and recommend measures to create a more sustainable and business-friendly telecommunications sector.
This decision followed deliberations on a motion sponsored by Senator Asuquo Ekpenyong, representing Cross River South. The motion underscored the financial hardship the drastic price hike has imposed on Nigerians, particularly young people who rely on affordable internet access for their daily work and livelihoods.
Concerns Over Data Price Surge
The Senate noted that data costs had risen by over 200%, significantly straining the finances of millions of citizens. Recognizing the critical role of internet access in economic activities, the lawmakers expressed concerns over the potential negative impact on businesses, freelancers, and young entrepreneurs.
Among the key resolutions, the Senate urged the Federal Minister of Communications, Innovation, and Digital Economy to engage with telecom service providers and review the recent price increases. The goal is to ensure that data pricing remains fair and affordable for all Nigerians.
Factors Contributing to High Telecom Costs
During the debate, several systemic challenges were identified as contributing to the high cost of telecommunications services in Nigeria, including: Inadequate Infrastructure and Power Supply: Poor network infrastructure and unreliable electricity significantly increase operational costs for telecom providers.
High Import Duties on ICT Equipment: The high cost of importing telecommunications equipment inflates service prices.
Multiple Taxation and Regulatory Charges: Excessive government levies and fees place additional financial burdens on telecom companies, which are often passed on to consumers.
Security Challenges: The unstable security situation in parts of the country raises operational risks, leading to increased insurance costs for telecom firms.
Bureaucratic Bottlenecks: Delays in obtaining necessary permits and approvals hinder business operations and technological advancements in the sector.
High Diesel and Alternative Energy Costs: Due to an unreliable national power grid, telecom companies rely heavily on expensive diesel generators and alternative energy sources to power their infrastructure.
Senate’s Next Steps
To address these challenges, the Senate resolved to:
1. Urge the Federal Government to work closely with telecommunications companies to review and reconsider the recent data price hikes.
2. Push for policies that will encourage competition and innovation, leading to better service delivery at more affordable rates.
3. Ensure that telecom companies operate in a more business-friendly environment while still protecting consumer rights.
Overhaul of National Identity Management System
In addition to addressing telecom sector concerns, the Senate also passed a bill aimed at restructuring Nigeria’s identity management system. The bill, which seeks to repeal and replace the existing National Identity Management Commission (NIMC) Act, was submitted and reviewed by the Committee on National Identity Card and Population, chaired by Senator Victor Umeh of Anambra Central.
Objectives of the Identity Reform Bill
Senator Umeh explained that the new legislation aims to create a harmonized, cost-effective, and globally compliant identity management system. Some key objectives of the bill include:
Enhancing Data Accuracy: Establishing a centralized and more efficient national identity database.
Promoting Inclusion: Ensuring all Nigerians, regardless of their social or economic status, are properly registered in the system.
Closing Existing Gaps: Addressing inconsistencies and inefficiencies in the current identity management framework.
Once signed into law, the bill will facilitate the creation of a centralized national identity database and establish a commission responsible for registering citizens and issuing identity cards.
The bill has now been transmitted to the House of Representatives for further legislative consideration. If approved, it will be forwarded to the President for final assent.
