The Minister of Communications, Digital Technology and Innovations, Sam Nartey George, has clarified the government’s position on internet data tariffs following growing pressure from social media users calling for a reduction in prices.
In an X (formerly of Twitter) post responding to a user, Sam George acknowledged the enthusiasm of advocates pushing for lower internet costs but pointed out that the power to remove or reduce taxes and tariffs lies solely with the Minister for Finance.
“Maybe it is important to educate since you may be unfamiliar with the laws of Ghana, that no Minister, except the Minister for Finance, through an instrument laid before Parliament, can remove any tax or tariff handle as it affects government revenue. So you may tag me a thousand times in a post, but the fact is that until we get the Minister for Finance to approve the removal or reduction of sector-specific tariffs, it is all enthusiasm and not facts.”
His response comes in the wake of rising concern over the cost of data in the country, which many Ghanaians say is too high compared to their earnings.
Social media users have been tagging the minister in several posts, urging him to take action to make data more affordable, as he promised when he was in opposition, blaming the previous government for making data prices expensive.
Despite Ghana being ranked among the African countries with relatively affordable mobile data, many Ghanaians are still being priced out of consistent internet access. In real economic terms, the cost of staying connected remains a daily burden for many.
On average, Ghanaians spend about GHS17 (approximately $1.37) for just one gigabyte of mobile data. This amount is nearly equal to the current daily minimum wage of GHS19.97 (approximately $1.61), meaning a day’s work may barely be enough to cover basic internet access, let alone other necessities.
For students, low-income earners, and small business operators, this has translated into digital exclusion, affecting access to education, remote work, mobile banking, and social services. Many users also report rationing data or limiting their usage to specific apps in order to manage costs.
Factors influencing data pricing
Several factors have contributed to the steady rise in data prices over the past two years:
Taxes and Levies: Mobile internet usage in Ghana is subject to multiple taxes, including: 17.5% VAT, 2.5% NHIL (National Health Insurance Levy), 2.5% GETFund Levy, and 1% COVID-19 Levy
These charges cumulatively raise the cost of data services by over 22%, placing a significant burden on consumers and service providers alike.
Operational Costs and Currency Depreciation: Telecom companies have cited increases in energy costs and the depreciation of the Ghana cedi as reasons for raising tariffs. The cost of maintaining infrastructure, particularly in rural areas, has also surged.
Market Restrictions: While MTN, Ghana’s largest telecom provider, was declared a Significant Market Power (SMP) to encourage competition, regulations have restricted it from offering the lowest possible prices, inadvertently keeping prices high across the sector.
Sam George, in the post, emphasised that while tariff reductions would offer the most significant relief to consumers, his ministry is exploring other avenues to address the issue.
“I am happy with the direction of the conversation with the Finance and Energy Ministers in the medium term. In the short term, the regulator would be implementing policy for immediate effects to be felt.”
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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.