How High Internet Costs Stifled SME Growth in 2024—The NCC’s Role in Bridging the Gap

By The Ameh News

As Nigeria reflects on the challenges faced by Small and Medium Enterprises (SMEs) in 2024, one statistic from the SME Growth Index Report stands out: over 65% of small businesses identified internet affordability as a major roadblock to expansion. This revelation exposed a fundamental weakness in Nigeria’s digital economy—one that slowed innovation, stunted growth, and left many SMEs struggling to compete in an increasingly digital world.

2024 in Review: SMEs Struggling Under the Weight of Costly Internet

For businesses across Nigeria, the high cost of internet services was more than just an inconvenience—it was a barrier to survival and scalability.

• Retail businesses found it difficult to transition fully into e-commerce due to expensive data plans.
• Tech startups, particularly in innovation hubs like Yaba, Abuja, and Port Harcourt, faced limitations in cloud-based operations and remote collaborations.
• Agripreneurs in rural Nigeria, who could have benefited from online marketplaces, were effectively cut off due to exorbitant ISP pricing and poor broadband penetration.

For Mrs. Iyabo Okafor a digital entrepreneur in Lagos, the struggle was real:
“We tried to scale our online sales, but with unreliable and costly internet, it became unsustainable. We had to pause our social media marketing because data was just too expensive.”

Similarly, Mr. IK Okeke, a software developer in Lagos, lamented:
“Running a tech firm without seamless internet is like running a car without fuel. The cost of internet access in 2024 was one of our biggest operational expenses.”

NCC’s Role: Did It Rise to the Challenge?

As the regulator of Nigeria’s telecommunications industry, the Nigerian Communications Commission (NCC) was expected to implement policies to make internet access more affordable and accessible. But did it do enough?

While the NCC made strides in expanding broadband infrastructure through the National Broadband Plan, affordability remained a critical challenge. The absence of strict pricing regulations for ISPs meant that major providers dictated costs, leaving SMEs with limited, costly options.

Additionally, the lack of adequate support for community-based ISPs left many underserved areas with slow and expensive connectivity. The NCC’s Universal Service Provision Fund (USPF), which could have been a game-changer for SME-focused broadband initiatives, was underutilized.

Lessons from 2024: What Must Change?

Looking back, the struggles of SMEs in 2024 highlight a pressing need for policy shifts to ensure that digital connectivity does not remain a luxury but a necessity for business growth.

1. Pricing Reforms: The NCC must regulate data pricing to ensure fair competition and affordability for small businesses.
2. Support for Community-Based ISPs: Encouraging localized, low-cost internet providers can bridge the affordability gap in underserved areas.
3. Stronger USPF Implementation: The Universal Service Provision Fund should be leveraged to subsidize broadband access for SMEs, enabling them to compete in the digital economy.

The Road Ahead: A Digital Economy That Works for All

As Nigeria moves beyond 2024, the lessons from the SME Growth Index Report must guide future decisions. Will the NCC step up with proactive reforms, or will SMEs continue to struggle under high internet costs? The future of Nigeria’s digital economy depends on the answer.

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