The Nigerian Communications Commission (NCC) has approved a long-awaited proposal for telecom tariff adjustments, marking the first price hike in over a decade. Beginning January 2025, Nigerians will see increased charges for calls, SMS, and internet data bundles, a decision aimed at addressing rising operational costs in the telecommunications sector.
Under the new tariffs, the cost of a phone call will increase from ₦11 to ₦15.40 per minute, while SMS rates will rise from ₦4 to ₦5.60. Data prices are also set to climb, with a 1GB bundle expected to cost at least ₦1,400, up from the current ₦1,000. These changes reflect a 40% hike across various services.
An NCC spokesperson confirmed the development to TechCabal, stating, “This announcement will benefit both subscribers and operators because we have taken into account proposals from the industry and the public.” Further details are expected in an official release.
Telecom operators such as MTN Nigeria, Airtel, and 9Mobile have long called for price adjustments, citing the need to offset soaring operational costs due to inflation and economic pressures. For 11 years, operators have been unable to revise tariffs despite rising costs. In 2024 alone, MTN Nigeria reported losses of ₦514.9 billion in the first nine months, while Airtel Africa faced a $89 million deficit, largely attributed to challenges in the Nigerian market.
Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, acknowledged the necessity of the adjustments in a December interview, stating, “We think there may be a need for that.”
The NCC, which regulates tariff adjustments, has previously struck a balance between protecting consumers and ensuring the financial sustainability of operators. For instance, in October 2024, the commission rejected Starlink’s proposal to double its subscription fees, prioritizing affordability for users.
While the new tariffs aim to stabilize the telecom sector and incentivize investment, the decision comes amid Nigeria’s high inflation rates, including food inflation at 39.93%. Experts warn that increased telecom costs could affect digital inclusion in a country prioritizing internet accessibility.
Despite concerns, Gbenga Adebayo, President of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), supports the move, stating, “Cost-reflective prices will incentivize investment and help improve quality in the long run.”
The NCC’s decision highlights the challenge of balancing affordability for consumers with the sustainability of one of Nigeria’s most vital industries. As the changes take effect, stakeholders will be watching closely to assess their impact on the economy and digital access.
