Korede Abdullah in Lagos
The Nigerian Communications Commission (NCC) may have approved a long-pending proposal for telecom tariff hikes, marking the end of over a decade of lobbying by telecom giants like MTN Nigeria, Airtel, and 9Mobile.
Africa Health Report (AHR) investigations revealed that the new rates for calls, SMS, and internet bundles are expected to take effect in January 2025, with tariffs rising by up to 40%.
Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, acknowledged the need for price adjustments, stating,
“We think there may be a need for that” in a December 20 interview in a national TV.
According to the existing proposals, the cost of a phone call will increase from ₦11 to ₦15.40 per minute, while SMS charges will rise from ₦4 to ₦5.60.
Additionally, the price of a 1GB data bundle will increase from ₦1,000 to at least ₦1,400. The NCC source stated,
“This announcement will benefit the subscribers and operators because we have taken into account the proposals from the industry and the public”.
The NCC aims to balance the financial burden on subscribers while recognizing the industry’s operational challenges, which could affect service quality and investment.
The tariff hike has sparked concerns about its potential impact on digital inclusion, particularly in a country where affordable internet access is a priority.
However, industry leaders argue that cost-reflective prices will incentivize investment and help improve quality in the long run.
President of the Association of Licenced Telecommunication Operators of Nigeria (ALTON) Gbenga Adebayo noted that the current situation has led to significant financial losses for telcos, with MTN Nigeria reporting a ₦137 billion loss in 2023 and Airtel Africa reporting losses of $89 million in FY 2024.
