The Nigerian Communications Commission (NCC) has approved long-awaited telecom tariff increases, which will take effect in January 2025.
This decision ends over a decade of lobbying by telecom giants such as MTN Nigeria, Airtel, and 9Mobile, who have advocated for price adjustments to align with the economic realities faced by the industry.
Despite rising operational costs, driven by inflation, telecom operators have not been able to raise their tariffs for over 11 years.
An NCC spokesperson confirmed to TechCabal that more details about the adjustments will be provided in an official announcement soon.
The spokesperson highlighted that the proposed changes have considered feedback from both the telecom industry and the public, ensuring that the adjustment will be beneficial for both operators and subscribers.
Under the new tariff structure, telecom costs could increase by up to 40%. For instance, the price of a phone call will rise from ₦11 to ₦15.40 per minute, while SMS charges will go up from ₦4 to ₦5.60. Data bundles are also expected to see a price hike, with a 1GB bundle set to increase from ₦1,000 to ₦1,400.
In a December 20 interview with Arise TV, Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, acknowledged the necessity of price adjustments, stating, “We think there may be a need for that,” in response to rising operational costs.
The NCC, which is responsible for overseeing tariff adjustments in the telecommunications sector, had previously rejected Starlink’s application to increase subscription fees to ₦75,000 in October 2024.
While the NCC aims to balance the impact on subscribers, it also recognises that operators’ financial challenges must be addressed to ensure continued investment and service quality in the sector.
However, rising food inflation, currently at 39.93%, presents a significant challenge to the telecom tariff increase.
There are concerns that higher costs could lead to a reduction in internet usage, hindering efforts toward digital inclusion in Nigeria. Nonetheless, the current state of the industry has resulted in substantial financial losses for telecom companies.
MTN Nigeria, for instance, reported a ₦137 billion loss in 2023, with losses growing to ₦514.9 billion in the first nine months of 2024. Similarly, Airtel Africa faced losses of $89 million in FY 2024, largely due to difficulties in the Nigerian market.
Despite these challenges, Gbenga Adebayo, the President of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), believes that cost-reflective prices will stimulate investment and ultimately improve service quality.
