Nigeria is one of the countries with highest consumption of data in Africa. In Sub-Saharan Africa (SSA), for instance, Nigeria’s monthly data consumption of 80,000 tb (80 million gb) is only topped by South Africa, which expends up to 269,000 tb every month.
Yet, the cost of data is not cheap for the average Nigerians. In 2022, Nigeria ranked as one of the top five countries in Africa with the highest data costs, with $0.61 as their respective prices for 1GB. Using the average cost of 1GB of data at N487.18, as announced by the Nigerian Communications Commission (NCC), in 2020, Nigerians spent at least N100.3 billion on internet data in the year under review.
Putting the figure in a more perspective way, the 2020 subscriber/network data report released by the NCC, revealed that, data usage in 2020 increased from 123,648 terabytes recorded in 2019 to 205,880.4 terabytes, representing a 66.5 per cent increase during the review period. The report also outlined that broadband penetration peaked at 45.93 per cent within the year.
The report also revealed that revenue generated by GSM operators increased by 12.33 per cent from N2.02 trillion recorded in the previous year to N2.27 trillion in the review period, while internet service providers generated a sum of N68.96 billion in revenues, up 28.31 per cent compared to N53.75 billion recorded in 2019.
Cutting data expenses
Meanwhile, stakeholders who spoke with LEADERSHIP WEEKEND disclosed that, fibre broadband is a sure way to cutting down the huge amount of money spent on data, but not without challenges.
Speaking on the benefits of fibre broadband, head of sales, FibreOne Broadband, Dr Kenny Joda, told LEADERSHIP WEEKEND that, nothing affects Fibre broadband connectivity, not even bad weather, adding that, fibre broadband is 50 times faster than any radio connectivity, used by GSM operators.
“It is reliable and not affected by bad weather. With 5G now in place, connectivity becomes more faster with fibre broadband. On the long run, it will be much cheaper than radio connectivity. Other than the initial cost of installation, you get value for money and we at Fibre One offers unlimited data, in that once you pay N11,000, it lasts for one month without disruptions. You can connect all your devices and it won’t finish within the one month subscription,” Joda explained.
Hiccups
The chief operating officer, eStream Networks Limited, Martins Akingba explained to LEADERSHIP WEEKEND that fibre broadband, which is the delivery of internet service using fibre as the medium of connection to the end user, could cut down the cost of data if it is deployed everywhere in Nigeria.
“However, Fibre is not a mass market service as at today in Nigeria. It will takes years of investments to make any appreciable impact in the use of Fiber for delivering internet service. Even in advanced economies, fibre is only available in metropolitan areas. Today in Nigeria, fibre is still restricted to major cities like Lagos, Abuja, Portharcourt, Ibadan, and some capital cities,” he stated.
Other challenges range from lack of infrastructure, especially power, Akingba stated, adding that, “absence of an incumbent National operator has forced private investors to do this, hence, they refuse to allow other local providers access this infrastructure or they price it way above rates that are competitive.
Need For Govt Intervention
The federal government had realised that broadband penetration is key to reducing the cost of data, hence, the reason it has targeted 70 per cent broadband penetration to cover 90 per cent of the population by 2025, Akingba stated, even as he applauded the federal government for reducing the right of way tariff to N150 per meter.
He however appealed to state governors who are yet to implement the N150 per meter tariff, to do so.
In the same vein, Joda disclosed that the federal government has given Internet Service Providers (ISPs) a lot of assistance, as effort to boost broadband penetration in Nigeria.
“The federal government has urged state governors to reduce right of way tariff to N150 per meter. While some states have comply, others like Lagos are yet to comply. For instance, Lagos state is still charging us as high as N1500 per meter,” Joda lamented.
Conclusion
Internet connectivity could eat up your profit if an entrepreneur is not smart with data budgeting. While there are available platform to access data for your internet connection, LEADERSHIP WEEKEND findings show that Fibre Broadband is the cheapest and gives better service deliveries that the others in the market. Hence, any entrepreneur who wants to cut down on internet expenses may consider fibre broadband especially when such companies resides in Lagos, Abuja, Portharcourt, among other major cities in the country.
