News Room — Ajifa Solomon
The Plateau State Government recently announced plans to partner with an unnamed telecom provider to reduce the cost of calls and internet data in Jos. This initiative aims to foster a vibrant digital ecosystem while making tech operations in the state more affordable. The announcement was made during a government-organised tech hangout in December.
Caleb Mutfwang, the state governor, said, “We are trying to improve our capacity for e-governance by removing all the possible bottlenecks. We are already discussing with IHS Towers (one of the largest independent owners, operators and developers of shared communications infrastructure in the world) to improve internet access. I am ready to sign up for zero tax for the right of way.”
This, he said, was part of his administration’s commitment to transforming the state’s tech sector which he said would witness an advancement in 2025.
David Daser, the Chief Executive Officer of the federal government-owned Digital Bridge Institute and former Director General of the Plateau State Information and Communication Technology Development Agency (PICTDA) said the right of way for the telecom provider is a medium that offers a tax-free deal to lay fibre cables within the state.
“One of the major challenges confronting the tech ecosystem in the state is the high cost of calls and data. The state also has to grapple with poor internet connection and so we are working with a telecom provider to see how we can crash the cost of calls and internet within the state,” Dominic Datong, the PICTDA Director General, told JoeyOffAir.
He declined to comment on the details of the partnership. “By the time we are done, it will be visible for all to see,” Datong.
The proposed partnership comes at a time when telecom providers nationwide are preparing to raise prices for calls, SMS, and internet bundles starting in January. “We’ve sent requests of approximately 100% tariff increases to regulators. I doubt they’re going to approve that quantum of increases because they are very, very sensitive to the current economic situation in the country,” Karl Toriola, MTN Nigeria CEO said.
According to a joint statement by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON), the industry has been under severe financial strain, threatening its sustainability and investor confidence.
“For a fully liberalised and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence,” the statement read. “Government needs to facilitate a constructive dialogue with industry stakeholders to address pricing challenges and establish a framework that balances consumers’ affordability with operators’ financial viability.”
Soaring inflation, currency devaluation and rising operational costs have hit telecom providers hard. For example, the country’s largest provider MTN Nigeria reported losses of ₦514.9 billion in the first nine months of 2024, following a ₦137 billion loss in 2023. Similarly, Airtel suffered a net loss of $72 million in the half-year ending September, driven by currency devaluation, exchange rate fluctuations, and investment losses.
Globacom also faced revenue declines, losing millions of subscribers in 2024 due to the National Identification Number (NIN) verification process, which reduced its active subscriptions from 62.1 million to 19.1 million. Meanwhile, 9mobile’s subscriber base dwindled to just 3.6 million.
Beyond financial losses, the industry is grappling with challenges such as equipment theft, vandalism, and fibre cuts caused by construction activities. Airtel reported 7,742 fibre cuts between July and December last year—an average of 43 cuts daily. According to the company’s Director of Corporate Communications, Femi Adeniran, this situation has become an “epidemic” that threatens Nigeria’s digital economy.
A Bloomberg report revealed that fibre optic cable damage cost MTN and Airtel a combined ₦27 billion ($23 million) in 2023. MTN alone relocated 2,500 kilometres of fibre cables between 2022 and 2023, at a cost exceeding ₦11 billion—funds that could have been used to expand coverage.
Adding to these woes is a proposed 5% excise duty on telecommunication, gaming, and betting services. Initially introduced in May, the bill faced public backlash and was withdrawn but has since been reintroduced and awaits executive approval. Telecom providers currently pay over 50 different taxes.
It comes as no surprise that telecom operators are seeking a 100% tariff hike. Nigeria’s Minister of Communication, Bosun Tijani, acknowledged the situation, stating, “there may be a need for it.”
Operators have warned that without a tariff increase, they may be forced to implement “load shedding,” which could result in periodic network outages in low-revenue areas as infrastructure investments are redirected to high-revenue locations. For example, instead of ensuring reliable connectivity in Kuru, a rural area in Jos South, telecom providers might prioritise users in commercial hubs like Jos Main Market. On a national scale, cities such as Lagos, Abuja, Port Harcourt, and Kano would take precedence over smaller locations like Jos, the Plateau State capital.
Against this backdrop, the Plateau State Government’s proposal to lower call and data costs appears ambitious. However, its feasibility raises significant questions. The state’s 2025 budget allocates ₦252.7 million ($154,528) to the Ministry of Information and Communication, which translates to just $53.77 per capita for its 4.7 million residents.
The financial strain of subsidising telecom services presents a major challenge. Nevertheless, PICTDA’s Director General, Dominic Datong, remains optimistic.
Whether the government can turn this ambitious promise into reality or if it will remain a lofty aspiration is a question only time can answer.
