The Nigerian Communications Commission (NCC) has approved a proposal for telecom tariff hikes, with new rates for calls, SMS, and internet bundles set to take effect in January 2025.
This decision follows more than a decade of lobbying by telecom giants such as MTN Nigeria, Airtel, and 9Mobile, who have sought price adjustments to reflect economic realities. Despite surging operational costs driven by inflation, telecom operators have been unable to revise their pricing for 11 years.
Under the proposed adjustments, telecom tariffs could rise by up to 40%. If implemented:
- The cost of a phone call would increase from approximately $0.01 to $0.02 per minute.
- SMS charges would rise from $0.005 to about $0.007.
- The price of a 1GB data bundle would jump from roughly $1.26 to at least $1.77.
An NCC spokesperson confirmed that further details of the new rates will be shared in an official announcement. “This announcement will benefit both subscribers and operators because we have taken into account proposals from the industry and the public,” the spokesperson said.
The tariff increase addresses growing financial strains on the telecom sector. Rising inflation, currently at 39.93%, has significantly driven up operating costs for telecom operators, resulting in steep financial losses.
- MTN Nigeria reported losses equivalent to $180 million in 2023, escalating to approximately $678 million in the first nine months of 2024.
- Airtel Africa reported a loss of $89 million for FY 2024, largely due to its operations in Nigeria.
While the NCC aims to protect subscribers from excessive financial burdens, it also recognises the operational challenges faced by telecom companies, which could affect service quality and investment. For example, the commission recently rejected Starlink’s request to double subscription fees to $95 per month, emphasising the need for balanced pricing.
The price hike raises concerns about its potential impact on digital inclusion, especially in a country where affordable internet access is a priority. Rising costs could reduce internet usage, further widening the digital divide.
However, industry leaders argue that the adjustments are necessary to sustain operations and improve service quality. Gbenga Adebayo, President of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), stated that cost-reflective prices would encourage investment and ultimately benefit subscribers in the long term.
Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, acknowledged the need for the tariff increase, stating in a recent interview, “We think there may be a need for that.”
As January 2025 approaches, the telecom industry is preparing for the new pricing regime, which is expected to balance financial sustainability with service delivery in Nigeria’s growing digital economy.
