By Friday Omosola and Helen Okechukwu
Entrepreneurs operating in Nigeria whose businesses depend on data for sustainability and profitability have raised the alarm over declining productivity caused by the recent hike in data costs, as well as unreliable network service.
In January this year, in a statement, the Nigerian Communications Commission’s (NCC) Director of Public Affairs, Reuben Muoka, announced a 50% tariff increase for telecom call and data services.
According to NCC, the tariff increase was the first since 2013 and aligned with Section 108 of the Nigerian Communications Act, 2003 (NCA).
Since the approval of higher data and airtime charges for telecom operators, Nigerians—including entrepreneurs who rely on social media for their businesses—have borne the brunt of the price hike.
There is also ample evidence that data and call tariffs have risen by 200%. Under the revised pricing, MTN’s 1.8GB monthly plan now costs ₦1,500, replacing the previous 1.5GB plan, which was priced at ₦1,000. Similarly, the 20GB plan has risen from ₦5,500 to ₦7,500.
In response to the backlash, MTN tendered an apology to its subscribers for the 200 per cent increase in the price of its 15GB data plan. However, despite the NCC approving a 50 per cent tariff review for telecom operators, the price hike was not reversed.
Beyond MTN, other network providers, including GLO, Airtel, and others also increased their data and call tariffs.
Meanwhile, entrepreneurs who spoke with The New Daily Prime disclosed how rising costs and deteriorating network quality have affected their service delivery to clients and potential customers.
Anthony Orji, a car dealer in Rivers State, recounted the challenges he has continued to face since the tariff hike.
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“Uploading content now is a struggle. Before, I used to upload more than 30 pictures of cars on my WhatsApp status for potential customers. Now, I can only upload three, because of the high cost of data,” he said, frustration palpable evident in his voice. “I don’t want to upload content and then run out of data unexpectedly, leading to additional expenses.”
He further explained that due to the high costs of data, he switched from MTN to Glo. “MTN’s tariffs have doubled compared to what we used to pay before,” he added.
Similarly, Favour Brown, a clothing vendor, noted that the data price hike has affected her customer reach.
“I don’t get as many views on my status as I used to, because many of my clients are complaining about the high cost of data. It has limited their ability to buy data regularly,” she lamented. “Despite this, I have managed to keep my service prices stable for now, even with the economic difficulties we’re facing in Nigeria.”
Alternatives options
In Niger State, Samson Chukwu, a realtor, has been struggling with poor network service alongside the increasing cost of data. What was once a smooth process of connecting with clients through social media and messaging platforms has become a daily frustration.
“Sometimes you buy data, and it doesn’t work,” he said. “I used to get 10GB of data for a month at N800 under a special plan in MTN data tariff. Now, that same thing is not available anymore.”
The unreliable service has had a direct impact on his business. Vital client messages are often delayed, even when he is online.
“Clients now have to call me before I even realize that messages have been sent,” he explained. Due to the inefficiency of mainstream telecom providers, he and many others in his area have turned to Starlink, despite its high cost.
To manage expenses, a growing trend has emerged—those without personal Starlink setups contribute money to those who own the system to share the connection.
“This is what is trending now in my area. Any young person here is using Starlink in one way or another,” he noted.
However, the high cost of Starlink remains a concern. “Last year, I was interested in getting a fairly used Starlink setup for N450,000. But instead, I decided to contribute to someone else’s subscription. If network providers don’t improve their services, many people will completely abandon them for Starlink,” he warned.
Adjustment to new realities
This migration to Starlink and other internet providers is not limited to individuals. Chibuchi Onyemauche, who runs a tech company specializing in business registration, design, and social media management, highlighted how the tariff hike has negatively impacted operational costs.
With Starlink’s rapid adoption, the telecom landscape in Nigeria is changing.
“Just a year ago, only 1% of my community used Starlink,” Samson stated. “Now, it’s over 70-80%. Even those who don’t own a Starlink device are connected to someone else’s network. In five to ten years, traditional telecom companies might lose most of their data customers to Starlink.”
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While Starlink offers a promising alternative, its high cost remains a barrier for many Nigerians. If local telecom providers fail to improve service quality and adjust pricing structures, the migration to Starlink may become a nationwide trend, redefining digital connectivity in Nigeria.
“The increase hasn’t affected our ability to render quality services,” Chibuchi stated. “But it has significantly impacted our subscription budget. We now spend 15-33% more than we used to on data.”
Despite the cost hike, Chibuchi’s company has maintained its pricing model without overburdening customers. However, they have had to make adjustments.
“Previously, our free Wi-Fi was open to unlimited users. Now, we’ve had to restrict access to a certain number of people per day. Once the limit is reached, there’s no additional access,” he explained.
Unlike Samson, Chibuchi is less concerned about government intervention. “Our organization has always found ways to navigate challenges,” he said. However, he acknowledged that if tariffs continue to rise, businesses will eventually have to increase service charges, affecting customers.
Call for govt’s intervention
For many Nigerians, frustration goes beyond mere inconvenience. Samson believes that the government should regulate telecom providers to ensure fair pricing and better service delivery.
“If you go to other African countries, they have better networks. Here in Nigeria, these companies are taking us for granted. If the government impose policies to regulate these frequent price hikes, it would help a lot,” he suggested.
For Orji and other young entrepreneurs, their collective appeal is for the government to intervene—making internet services both affordable and reliable, particularly for small business owners who depend on it for their livelihood.
