Tariff increase: Cost of data in Nigeria, Ghana, South Africa, and Kenya compared 

This follows years of agitation and advocacy by telecom operators for a review of the current tariff regime, which was last adjusted in 2013.

The operators cited the astronomical rise in cost operations fueled by the forex crisis and the rising inflation in the country as justification for an increment in telecom tariffs.

According to them, players across all sectors of the economy have adjusted their prices in line with the economic realities, except telecoms where the regulator has withheld the approval for such a move.

However, after a meeting with the telecom companies in Abuja last week, the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, announced that the government was willing to shift ground and allow price increments in the interest of the industry’s sustainability.

But the Minister was unequivocal in dismissing the 100% increment requested by the telecom operators

While the NCC has yet to reveal the percentage increment to be implemented, the general perception in the industry is that Nigeria currently has one of the lowest telecom tariffs in Africa, especially for data, hence, the operators want an increment that will be commensurate with what obtains in other markets.

Similarly, a worldwide data pricing report published by cable.co.uk ranked Nigeria as one of the countries with the cheapest price for 1GB of data in the world. Globally, Nigeria ranked 31 out of 237 countries with Israel ranking as number one with an average of 1GB of data at $0.02.

According to the report, the average cost of 1GB of data in Nigeria is $0.39 and it is the cheapest in the West African region.

As Nigeria is preparing to review telecom tariffs which will bring the cost of data up to the same level as some other African countries and possibly surpass others, it is also imperative to look at the economic power of the subscribers.

For instance, a look at the GDP Per Capita of each of the four countries shows that Nigeria also has the lowest GDP Per Capita compared to South Africa, Ghana, and Kenya.

GDP per capita is a measure of a country’s average income, calculated by dividing its gross domestic product (GDP) by its population and it is often used to compare the standard of living between countries.

For telecommunications operators in Nigeria, there are more then enough reasons to increase tariffs for voice, data, and SMS services, and not just a slight adjustment but 100% increment.

According to the CEO of Airtel Nigeria, Mr. Dinesh Balsingh, telecom tariffs in Nigeria have remained static despite the dramatic increase in operating expenses, which have surged by over 300% in the last 18 to 24 months alone.

According to the CEO of Airtel Nigeria, Mr. Dinesh Balsingh, telecom tariffs in Nigeria have remained static despite the dramatic increase in operating expenses, which have surged by over 300% in the last 18 to 24 months alone.

Balsinghsaid the increments are critical for maintaining high-quality services and enabling further advancements in Nigeria’s digital transformation journey.