Internet Service: Introduce Pay-as-you-go Policy, Reps Direct NCC

The House of Representatives has directed the Nigeria Communications Commission (NCC) to initiate a policy of Pay-As-You-Go to all Internet Service Providers (ISPs) in order to minimise high level of exploitations by the service providers services not rendered.

The House also urged the NCC and relevant agencies to develop a consumer protection framework that includes provisions for automatic compensation or refunds for prolonged service outages or significant deviations from advertised service levels.

These resolutions were sequel to the adoption of a motion of urgent public importance moved by Hon Leke Abejide at plenary on Thursday who noted that numerous ISPs have managed to evade accountability for their widespread inefficiency, feeble and inferior service delivery.

This is as economic experts and stakeholders in the telecom industry have warned that the sector’s decline could have far-reaching consequences for the country’s economic growth and development, if the government does not intervene.

At the plenary, Hon. Abejide lamented that consumers are compelled to persistently pay for inadequate services due to the apparent absence of regulations governing their pricing and service provision, thereby enabling them to exploit Nigerians.

The lawmaker further noted frequent service outages. slow speeds, and inconsistent connectivity are widespread issues faced daily by consumers, as in this digital age, efficient Internet connection is a necessity, not a luxury.

Abejide expressed concern that consumers sometimes experience service outages for more than an aggregate of two weeks in a single month from some ISPs, with no mechanism for refunding subscription fees, thus perpetuating a disregard for consumer rights and leading to exploitation.

The lawmaker expressed worry that regulatory agencies have so far condoned the activities of inefficient ISPs to the detriment of consumers.

“Also worried that the inefficiency of ISPs and therefore exploitative practices have far-reaching consequences on Nigerian society, hindering progress and negatively impacting business and economic activities.

“Aware that by addressing the inefficiencies of ISPs and promoting accountability, we can create a fair and inclusive digital landscape that empowers individuals, strengthens the economy, and fosters social progress,” he maintained.

Adopting the motion, the House  mandated its Committee on Communications to investigate and report back to the House in two weeks for further legislative actions.

Meanwhile, stakeholders gave the warning at a breakfast session hosted by the Lagos Business School, Pan-Atlantic University on leading voices in the private sector gathered to discuss the theme “Telecom Sector: The Fulcrum for Economic Dynamism in Nigeria.”

Keynote speaker and CEO of Financial Derivatives Company, Bismarck Rewane, emphasised the telecom sector’s critical role in driving economic growth, innovation, and productivity across various industries.

Rewane, in his presentation titled, “Nigerian Economy on the Brink, Adapt or Collapse?” highlighted the sector’s challenges, including rising inflation, high operating costs, limited access to foreign exchange, regulatory burdens, multiple taxations, and state and local government extortion.

He stressed that these challenges are threatening the sector’s growth and development, citing MTN’s reported loss in the 2023 financial year.

Rewane emphasised that the current situation is having a detrimental impact on the sector’s growth and development, warning that the revenue potential from telecoms may start falling, leading to a ripple effect on other sectors.

“Big push theory posits that growth in one sector can stimulate growth in others through backward and forward linkages. The telecom sector has both forward and backward linkages to various sectors. This linkage to other sectors is vital for economic growth, innovation, and productivity across various industries making it a key enabler and driver of development in modern economies. If the telecom industry collapses, all other sectors will follow”, he added.

Other notable speakers, including Prof. Ali Bongo, who echoed Rewane’s sentiments, stressing the need for government support and deregulation to ensure the sector’s survival.

They highlighted the sector’s growth potential, citing its eight per cent outperformance of GDP growth rate between 2019 and 2023.