Africa Daily: The Impact of Rising Data and Mobile Call Prices on Nigerians
BBC World Service, Hosted by Alan Kasujja | Released on February 24, 2025

Introduction

In this episode of Africa Daily, host Alan Kasujja delves into the significant increase in data and mobile phone call prices in Nigeria and explores the multifaceted effects of this hike on the daily lives and businesses of Nigerians. Released on February 24, 2025, the episode provides an in-depth analysis of the telecommunications sector's recent adjustments and their broader socio-economic implications.

Background: The Telecommunications Price Hike

Earlier in the year, Nigerian telecommunication companies announced a substantial price increase of up to 50% across various services. This surge affects millions of Nigerians who rely heavily on mobile data and call services for both personal and professional uses. To contextualize the impact, the minimum wage in Nigeria has remained stagnant at below 50,000 naira (approximately $33) per month for years, exacerbating the financial strain caused by these price hikes.

Alan Kasujja outlines the specifics of the increase:

• Data Costs: Previously priced at 350 naira (~$0.25) per gigabyte, data now costs 525 naira (~$0.35) per gigabyte.
• Call Rates: Calls now cost 16.5 naira (~$0.01) per minute, up from lower rates that had remained unchanged for decades.

“The hike is so ridiculous, it's really bad,” states Tawfik Adeshina, highlighting the widespread frustration among Nigerians.

Interview with Yusuf Akinpelo: Understanding the Causes and Initial Reactions

Yusuf Akinpelo, a BBC reporter based in Lagos, provides a comprehensive overview of the reasons behind the price increases. According to Akinpelo, the telecommunications companies justified the hike by citing increased operational costs, including:

• Utilities and Power Plants: Rising expenses in maintaining and powering their infrastructure.
• Overhead Costs: Escalating costs associated with running their facilities amid Nigeria’s economic challenges.

These explanations were supported by the Nigerian government, which emphasized the necessity of maintaining business viability amidst escalating costs. However, many Nigerians were taken aback by the abrupt announcement, as there was no prior notification or sufficient communication from the telecom providers.

Key Quote:
"We had a meeting with the government and then a committee was set up to see what they can do to ameliorate the situation. But sometimes, more often than not, the said committees are often just a way of buying time or just dousing the tension," explains Akinpelo [07:05].

Akinpelo also points out that this hike is unprecedented in its magnitude compared to previous increases, where data and call prices remained relatively stable for nearly two decades. The substantial rise in costs, without a corresponding increase in wages, has intensified the financial burden on Nigerians.

Personal Impact: Tawfik Adeshina’s Story

Tawfik Adeshina, a photographer and social media influencer, shares his firsthand experience of how the price hike has affected his livelihood. As someone who relies heavily on data for his work, the increase has had a profound impact:

• Data Subscriptions: Tawfik's annual subscription, previously 100,000 naira for one terabyte, has surged to 150,000 naira for the same amount of data, now lasting only six months.

  Quote:
  “The hike is so ridiculous and all that. So it's really bad,” expresses Tawfik [10:51].

• Data Usage: With daily usage exceeding 20 gigabytes across multiple network providers, the increased costs have made it challenging to sustain his professional activities.

  Quote:
  “On a daily basis, I use nothing less than 20 gigabytes in a day,” Tawfik explains [11:09].

Despite the higher prices, network reliability has not improved. Tawfik notes frequent connectivity issues, which hinder his ability to upload work and communicate effectively with international clients.

Quote:
“It's very sad because despite the fact that they increased the data tariff, we have been witnessing a very low network,” he remarks [11:36].

The lack of improved service despite higher costs has led Tawfik and others in the creative industry to seek alternative solutions, such as collaborating to invest in Starlink's broadband Internet service.

Government and Industry Response

In response to public outcry and potential strikes from labor unions, the Nigerian government established a committee to address the issue. However, Yusuf Akinpelo remains skeptical about the committee's effectiveness:

Quote:
“I doubt there would be a reversal in the price because the government isn't so keen to subsidize anything at the moment,” Akinpelo comments [07:37].

The anticipated measures, such as tax rebates or subsidies, are viewed as insufficient to counterbalance the steep price increases without broader economic reforms, including adjustments to the minimum wage.

Quote:
“If you're increasing what people are buying, so too should what you are paying people,” Akinpelo insists [09:27].

Broader Socio-Economic Implications

The price hike has far-reaching consequences beyond individual hardships:

• Economic Strain: Increased costs for essential communication services exacerbate the already tight budgets of Nigerians living on low wages.

• Business Sustainability: Entrepreneurs and small businesses, especially those in digital and creative industries, face difficulties maintaining operations due to higher operational costs.

  Quote:
  “You also have amount of presence online. So the only oxygen they are using to stay afloat in this ecosystem is data,” Akinpelo explains [05:37].

• Access to Services: The high cost of data restricts access to digital banking, online education, and other critical services that depend on reliable internet connectivity.

Tawfik Adeshina warns of potential further hikes, which could lead to more businesses shutting down and increase poverty levels.

Quote:
“I'm actually scared for the next couple of months or years when they tend to increase it more,” Tawfik states [13:11].

Conclusion: The Road Ahead

The episode underscores the urgent need for a balanced approach to managing telecommunications costs in Nigeria. While companies cite legitimate reasons for the price increases, the lack of effective communication and insufficient government intervention leave many Nigerians struggling to adapt. As the situation evolves, stakeholders on all sides face the challenge of ensuring that essential communication services remain affordable and accessible to sustain both personal livelihoods and the broader economy.

Credits

Today's episode was produced by Victoria Nwo Honda and Sharon Immons, with editing by Rosanna La Falche and Simon Peeks. Africa Daily is a BBC World Service production. For more insights, listeners are encouraged to check out the sister podcast, Focus on Africa, which covers three major African stories each day.

Notable Quotes with Timestamps:

• Tawfik Adeshina [01:11]: "The hike is so ridiculous, it's really bad."
• Yusuf Akinpelo [07:05]: "I doubt there would be a reversal in the price because the government isn't so keen to subsidize anything at the moment."
• Tawfik Adeshina [10:51]: "The hike is so ridiculous and all that. So it's really bad."
• Yusuf Akinpelo [09:27]: "If you're increasing what people are buying, so too should what you are paying people."
• Tawfik Adeshina [13:11]: "I'm actually scared for the next couple of months or years when they tend to increase it more."

This comprehensive overview captures the essence of the episode, highlighting the critical issues surrounding the telecommunications price hike in Nigeria and its profound impact on the population.