The Nigerian telecommunications industry is set to undergo major changes as operators begin implementing tariff adjustments approved by the Nigerian Communications Commission (NCC). The regulator has capped tariff increases at 50%, but the adjustments will not apply uniformly across all service providers, allowing for variations based on competitive strategies.
The new rates could see call costs rise from ₦11 to ₦16.5 per minute, SMS charges increase from ₦4 to ₦6, and 1GB of data climb to ₦431.25. Analysts project these changes could boost annual telecom revenues from calls alone to ₦6.7 trillion, based on 2023 data showing 205.3 billion minutes of outgoing calls.
The NCC, citing inflation, foreign exchange volatility, and rising operational costs, defended the tariff hike as necessary for sustaining quality service delivery. Reuben Mouka, NCC’s director of public affairs, explained that operators must comply with regulatory guidelines, including the December 2024 Guidance on the Simplification of Tariffs in the Nigerian Communications Sector.
“We are committed to ensuring affordability while maintaining service quality,” Mouka said, assuring subscribers that the NCC would monitor the implementation to prevent exploitation and encourage consumer feedback.
Despite these assurances, subscribers are expressing concerns about the financial impact. Comfort Dele, an online vendor, called for improved network reliability to justify the price increases. The National Association of Telecommunications Subscribers (NATCOMS) has also criticized the adjustment.
Its president, Adeolu Ogunbanjo, labeled the 50% hike excessive, advocating for a more modest increase of 5% to 10%. Ogunbanjo proposed alternative funding measures for telecom operators, such as issuing stocks or launching Initial Public Offerings (IPOs), to ease the industry’s financial challenges without burdening consumers. He also highlighted unresolved debts between telecom operators and banks, urging their settlement as a means to strengthen the sector.
Ogunbanjo revealed plans to challenge the tariff hike in court, arguing, “Telecommunications are vital for education, business, and social interactions. This decision will have far-reaching consequences for millions of Nigerians.”
As implementation begins, subscribers are advised to stay informed, monitor service quality, and report any irregularities to the NCC.
