How reasonable is data pricing in Nigeria?

The debate over data pricing in Nigeria has sparked discussions among stakeholders in the telecommunications industry. Telcos in Nigeria have raised concerns over the suspension of the data tariff floor by the regulator NCC, emphasizing the need for realistic prices to ensure the provision of top-notch services. Ade Atobatele, a technology entrepreneur, sheds light on the intricacies of data pricing in the country and offers insights into potential solutions. At first glance, data pricing in Nigeria appears to be among the most affordable globally. Ade Atobatele acknowledges that in terms of the amount of data one receives per Naira, the deals are quite attractive. However, the issue of predatory pricing raised by the NCC adds a layer of complexity to the situation. The allocation of licenses for data distribution has inadvertently created an oligopoly in the industry, leading to concerns of monopolistic practices among the key players. Ade Atobatele underscores the significance of treating internet access as a utility, akin to essential services like electricity and water. He points out the lack of anti-monopoly laws in Nigeria as a contributing factor to the current pricing challenges. The absence of a regulatory framework for data delivery from external sources has paved the way for what is referred to as predatory pricing, where certain operators leverage their advantageous positions to undercut competition, potentially stifling market dynamics. Drawing parallels to historical cases like the breakup of AT&T in 1984, Ade Atobatele emphasizes the need for a sustainable solution to address the pricing disparities in the Nigerian telecommunications sector. He advocates for the establishment of a separate entity to oversee the distribution of data from external sources, ensuring fair and equal access for all market participants. The discussion also touches on the competitive landscape within the industry. While new entrants like Smile and IPNX have emerged, the dominance of established players such as MTN and GLOW, who control the data pipelines, presents a challenge in fostering a level playing field. Ade Atobatele proposes the implementation of a regulatory framework to prevent anti-competitive practices and promote fair pricing across the board. The conversation extends to the broader implications of data pricing on internet penetration and access in Nigeria. Ade Atobatele refutes claims of the telecommunications industry being ailing, citing the robust demand for communication services in the country. He asserts that investors are drawn to markets with significant potential for growth, underscoring the essential nature of telecommunications as a utility in today's digital age. Addressing the role of the NCC in balancing market dynamics and consumer interests, Ade Atobatele acknowledges the delicate tightrope that regulators walk in safeguarding fair competition while ensuring profitability for industry players. He calls for a comprehensive approach to managing data pricing, aligning it with established practices governing other essential services. As the debate on data pricing in Nigeria continues to evolve, stakeholders are urged to collaborate towards a sustainable framework that promotes accessibility, affordability, and innovation in the telecommunications sector. Ade Atobatele's insights shed light on the complexities at play and the imperative of establishing a regulatory environment conducive to healthy competition and consumer welfare.