The Nigerian Communications Commission (NCC) has approved a 40 per cent telecom tariff hike, ending over a decade of lobbying by major operators, such as MTN Nigeria, Airtel and 9Mobile, to review calls, SMS and internet bundles.
Under the revised structure, call charged will increase from N11 to N15.40 per minute, SMS costs will rise from N4 to N5.60 and 1GB data bundle will cost at least N1,400 up from N1000.
Promising more details in subsequent official announcement and emphasizing that the adjustments balance industry proposals with public interest, the NCC said: This will benefit both subscribers and operators as we’ve considered feedback from stakeholders.”
The Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, had acknowledged the need for the adjustment, citing economic pressures, in a recent interview on Arise TV.
Earlier in October this year, the NCC had rejected a proposed price hike from Starlink, highlighting its cautious approach to rate increases in order not to overburden subscribers, an NCC spokesperson stressed, defending the decision to finally succumb to industry pressures and hike rates.
The tariff increase is coming against the backdrop of rising food inflation at 40%, and fears of reduced internet usage in a country prioritizing digital inclusion.
But the NCC noted that the financial strain on telecom operators has also been severe, with MTN Nigeria reporting a N514.9billion loss in the first nine months of 2024, coming on the heels of N137billion loss in 2023.
Similarly, Airtel Africa faced $89million in losses for 2024, largely due to the deleterious effects on business of Nigeria’s economic crisis.
In response to NCC’s move, President of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Gbenga Adebayo, said it is in order, arguing that cost-reflective tariffs will act the incentives needed for investment in-flow, thereby improving the quality of service delivery in the long run.