Nigerian Communications Commission (NCC) has approved the proposed increase in telecommunications tariffs, effective January 2025. This decision follows over a decade of requests from major telecom providers, including MTN Nigeria, Airtel, and 9Mobile, to adjust pricing to reflect current economic realities and offset sustained operational cost increases stemming from high inflation.
An NCC representative confirmed that a formal announcement will provide further details on the revised tariffs. The representative stated that this decision benefits both subscribers and operators, reflecting consideration of industry and public feedback.
Under the proposed changes, telecom tariffs could increase by as much as 40%. If implemented, the cost of a phone call would rise from ₦11 to ₦15.40 per minute, while SMS fees would go up from ₦4 to ₦5.60. Additionally, the price of a 1GB data bundle is expected to increase from ₦1,000 to at least ₦1,400.
Dr. Bosun Tijani, the Minister of Communications, Innovation and Digital Economy, recognized the necessity for price adjustments, remarking, “We think there may be a need for that” during a December 20 interview on Arise TV.
The NCC is tasked with the review and approval of tariff adjustments within the telecommunications sector. In October 2024, it denied Starlink’s request to raise subscription fees to ₦75,000. While the commission aims to mitigate the financial impact on subscribers, it also acknowledges that the operational difficulties faced by the industry could influence service quality and investment.
The current 39.93% food inflation significantly complicates the planned telecom tariff increase, potentially reducing internet usage in a market prioritizing digital inclusion. However, current economic conditions have already caused substantial financial losses for telecom companies. For instance, MTN Nigeria reported a ₦137 billion loss in 2023, increasing to ₦514.9 billion in the first three quarters of 2024. Similarly, Airtel Africa reported an $89 million loss for FY 2024, largely attributed to Nigerian market challenges.
Despite the challenging market conditions within the telecommunications sector this year, Gbenga Adebayo, President of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), asserts that implementing cost-reflective pricing will stimulate investment and consequently improve service quality.