The Nigerian Communications Commission (NCC) has approved long-awaited telecom tariff hikes. Starting in January 2025, the new rates for calls, SMS, and internet bundles will take effect. This marks the end of over a decade of lobbying by telecom giants like MTN Nigeria, Airtel, and 9Mobile. These companies have called for price adjustments to reflect the economic realities. For 11 years, operators could not raise prices despite rising operational costs due to inflation.
The NCC confirmed the tariff increases and stated that more details will follow soon. A spokesperson for the commission assured that these changes will benefit both operators and subscribers. The NCC considered input from both the public and the telecom industry when making this decision.
The proposed increases could raise telecom tariffs by as much as 40%. Under the new rates, the cost of a phone call will rise from ₦11 to ₦15.40 per minute. SMS charges will increase from ₦4 to ₦5.60. Data bundles, such as a 1GB plan, will jump from ₦1,000 to at least ₦1,400. These price hikes aim to help telecom companies manage their rising costs.
Dr. Bosun Tijani, Nigeria’s Minister of Communications, acknowledged the need for price adjustments. He stated in an interview on December 20 that “there may be a need for that,” in light of the current economic challenges. However, the increase in telecom tariffs could reduce internet access in a country where digital inclusion is essential. The rising food inflation rate of 39.93% adds to these concerns.
Telecom companies, meanwhile, have faced significant financial losses. MTN Nigeria reported a ₦137 billion loss in 2023. By the third quarter of 2024, that loss had expanded to ₦514.9 billion. Airtel Africa also reported losses of $89 million in FY 2024, largely due to challenges in Nigeria.
In October 2024, the NCC rejected Starlink’s request to raise subscription fees to ₦75,000. The commission is careful to balance the financial burden on subscribers with the industry’s operational challenges. They hope that these tariff adjustments will stimulate more investment, improving service quality in the long term.
Gbenga Adebayo, President of ALTON, supports the price adjustments. He believes cost-reflective prices will attract investment and improve service quality. As the price changes take effect, both operators and subscribers must adapt to the new telecom landscape. The rise in tariffs is a step toward addressing the industry’s financial struggles and improving overall service quality.