The Nigerian Communications Commission has approved a significant tariff hike for telecommunications services, set to take effect in January 2025.
The new tariffs, which include up to 40 per cent increases in charges for calls, SMS, and data bundles, aim to address the financial pressures faced by telecom operators in Nigeria.
The move comes after more than a decade of lobbying by major telecom companies like MTN Nigeria, Airtel, and 9Mobile.
Under the revised pricing structure, call charges will rise from ₦11 to ₦15.40 per minute, SMS costs will increase from ₦4 to ₦5.60, and a 1GB data bundle will now cost ₦1,400, up from ₦1,000.
The adjustment follows the growing operational costs faced by telecom companies, including rising diesel prices and foreign exchange fluctuations.
The tariff hike is expected to provide relief to struggling telecom operators, enabling them to recover costs and invest in critical infrastructure, such as the expansion of 5G networks.
The NCC said the adjustments strike a balance between supporting the growth of the telecom sector and protecting consumers from excessive price hikes.
Gbenga Adebayo, President of the Association of Licensed Telecommunication Operators of Nigeria, voiced support for the tariff increases, arguing that cost-reflective rates would stimulate investment and improve service quality in the long term.
Despite the anticipated benefits for the telecom sector, the move has raised concerns about its impact on Nigerian consumers, many of whom are already grappling with inflation.
Food inflation, which recently reached 39.93 per cent, coupled with the financial strain on households, could dampen the impact of the price increases.
Additionally, there are fears that higher telecom prices could lead to reduced internet usage, particularly among low-income Nigerians, potentially affecting the country’s digital inclusion efforts.
In a recent interview, Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, acknowledged the need for the tariff adjustment, citing the current economic pressures.
However, the NCC has also shown caution in protecting consumers, notably rejecting a proposed price increase from Starlink in October 2024.
The tariff hike comes at a time when telecom companies are facing significant losses.
MTN Nigeria reported a ₦514.9 billion loss in the first nine months of 2024, following a ₦137 billion loss in 2023.
Airtel Africa also reported a loss of $89 million for the 2024 financial year, largely due to challenges in Nigeria.
As the new tariffs are set to take effect, the NCC will continue to monitor their impact, with the goal of fostering a balanced and sustainable telecom industry that can meet both operator needs and consumer expectations.
