The Nigerian Communications Commission (NCC) is set to approve a long-awaited proposal for telecom tariff increases, with the new rates expected to come into effect in January 2025.
This change follows over a decade of lobbying by major telecom companies, including MTN Nigeria, Airtel, and 9Mobile, who have been calling for price adjustments to keep up with Nigeria’s economic challenges.
These companies argue that the rising cost of doing business, especially due to inflation, has made it difficult to sustain their operations without raising prices.
A source within the NCC confirmed that more details about the upcoming price changes will be revealed in an official statement. “This announcement will benefit the subscribers and operators because we have taken into account the proposals from the industry and the public,” the source explained.
Under the proposed changes, telecom tariffs could increase by as much as 40%. For example, the cost of making a phone call may rise from ₦11 per minute to ₦15.40, while SMS charges could jump from ₦4 to ₦5.60. Data plans will also see an increase, with the price of a 1GB bundle expected to go up from ₦1,000 to around ₦1,400.
In a recent interview, Dr. Bosun Tijani, the Minister of Communications, Innovation, and Digital Economy, acknowledged the necessity for such price changes. “We think there may be a need for that,” he said during a December 20 appearance on Arise TV.
The NCC, which is tasked with regulating and approving price changes in the telecommunications sector, has had a busy year. Earlier in October, the commission rejected a proposal from Starlink to increase its subscription fees to ₦75,000.
The NCC aims to strike a balance between keeping costs manageable for subscribers while supporting the industry’s need to overcome operational challenges and maintain service quality.
However, the tariff increase comes amid concerns about rising food inflation, which stands at 39.93%. There are worries that higher telecom prices could reduce internet access in a country where digital inclusion is a growing priority.
Despite these concerns, the financial strain on telecom operators has been significant. MTN Nigeria, for instance, reported a loss of ₦137 billion in 2023, with losses growing to ₦514.9 billion in the first nine months of 2024. Airtel Africa also saw a loss of $89 million in the 2024 fiscal year, largely due to challenges faced in the Nigerian market.
Despite these financial difficulties, Gbenga Adebayo, President of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), believes that adjusting prices to reflect actual costs will encourage investment and ultimately improve service quality in the long run.
