Fintech Companies Must Reduce Data Costs to Strengthen Nigeria’s Economy, Says Paga CEO

The founder and CEO of Paga, Tayo Oviosu, has stated that telecommunications operators in Nigeria will need to bring the price of internet data to boost economic activities in Nigeria reported NairaMetrics.

Oviosu, who said this in Lagos whilst talking to reporters on the necessity to improve business in rural Nigeria, he stated that the unreachable cost of data is stopping many Nigerians from participating in the financial system.

In line with what he said, he stated that it is fact that data cost in Nigeria compared to a country like India is very high. He stated this impacts how many citizens use fintech services.

Fintechs in rural areas
Explaining why most fintech services are not accessible in rural areas, Oviosu said the cost of data is a major hindrance.

“For fintech services to get to the rural areas who predominantly practice agriculture some of these steps has to be taken. First of all, the biggest thing that actually has to happen is that the cost of data needs to come down.

Data is so expensive here. It’s no longer the issues of not having smartphones, now most Nigerians have smartphones. In India today, the value of a gigabyte of data is less than 0.07 USD. So cheap. You will consume so much content. That’s why you’ve got a lot of online content creators in India who is using it o make money, so, I suppose that’s a massive thing,” he said.

The call by telecom operators in Nigeria for higher rates due to inflation of other parallels necessities of life is uncalled for in the country, the Paga founder stated that the decision is unjustifiable, nevertheless. According to him, the telcos in Nigeria have relied solely on price rate while neglecting other cash flow , income generation opportunities.

“I think if they’re forced to reduce price, their businesses will scale significantly because they will make money from other areas they are not looking at.

If you visit the US, yes, you could visit a shop and purchase a smartphone, and most their telephones are from cellular operators. So, in Nigeria, there are different avenues that the cellular operators could make cash that they’re now not tapping into,” he said.

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