Nigerians are grappling with rising telecom tariffs as major service providers adjust their rates for calls, data, and allied packages citing inflation and operational costs. Many subscribers express frustration over the added financial burden, with some fearing limited access to essential communication services. Unfortunately, the first casualty of the hiked rates beyond personal setback, is the nation’s communications and digital sector, that has been positioned for accelerated progress. In this special report, Korede Abdullah, Africa Health Report (AHR) Southwest correspondent, examines the impact of the price hikes.
NCC’s New Tariff Hits Nigerians
Nigerian telecom users woke up to a rude shock as call, data, and SMS costs soared overnight, following the Nigerian Communications Commission’s (NCC) approval of a new tariff regime on February 10. With price hikes reaching nearly 50%, frustrated subscribers flooded social media, voicing their outrage over what many see as an unexpected financial strain in an already challenging economy.
With over 224 million mobile users in the country, MTN leads the market with 87 million subscribers, followed by Globacom and Airtel with 61 million each, while 9mobile serves 13.9 million users.
The NCC defended the adjustment, stating it was a necessary step for industry sustainability and was significantly lower than the 100% hike proposed by some operators. Citing its regulatory powers under the Nigerian Communications Act of 2003, the commission assured that ongoing reforms would help stabilize the sector while maintaining fair pricing.
As Nigeria hurtles towards a digital revolution, the hum of innovation and progress is palpable, but the question remains: can Africa’s largest economy truly become a digital powerhouse when the cost of connectivity threatens to derail its momentum?
Nigeria’s Tech Boom Faces a Costly Challenge
Nigeria’s rapid technological growth has positioned it as a rising powerhouse in Africa’s digital landscape. With a thriving startup ecosystem, expanding fintech sector, and increasing internet penetration, the country is on a fast track to becoming a global tech hub.
The government’s National Digital Economy Policy and Strategy aims to accelerate this transformation, with ambitious plans to integrate digital solutions into every sector by 2030. Investments in infrastructure, innovation, and digital literacy have fuelled optimism, painting a future where Nigeria leads in digital advancements across the continent.
However, the recent surge in telecom tariffs threatens to slow this progress, raising concerns about the affordability of digital services. With millions already struggling to access reliable internet, higher costs could widen the digital divide, putting Nigeria’s digital ambitions at risk.
Startups, remote workers, and students relying on affordable data may find themselves priced out of opportunities, challenging the government’s vision of an inclusive digital economy. As Nigeria pushes toward a tech-driven future, many concerned Nigerians are calling on policymakers to find a balance between industry sustainability and ensuring that digital access remains within reach for all citizens.
Data Price Hike Sparks Outrage
MTN, the largest player in Nigeria’s telecom industry, has been at the forefront of this price hike, with its data tariffs skyrocketing by up to 200%. This drastic increase has sparked widespread outrage among subscribers, who are already grappling with the economic challenges of high inflation and a weakening naira.
The data price hike is expected to have far-reaching implications for Nigeria’s digital economy, which is still in its nascent stages. With many Nigerians relying on mobile data to access essential services, including online banking, e-commerce, and education, the increased cost of data is likely to exacerbate the digital divide and hinder the country’s progress towards a knowledge-based economy.
The Nigerian Communications Commission (NCC) has been criticized for its failure to regulate the telecom industry and protect the interests of consumers.
Tariff Tensions: A Threat to Nigeria’s Digitalization Dreams
The increases in telecom tariffs in Nigeria have sent shockwaves through the country’s burgeoning tech ecosystem, posing a significant challenge to its technological growth and aspirations for a digital economy. With data and call rates skyrocketing, millions of Nigerians are facing a daunting reality: reduced access to digital services, stifled innovation, and a widening digital divide.
As the government’s ambitious plans for a digital economy hang in the balance, experts warn that rising telecom tariffs could undermine Nigeria’s competitiveness, hinder e-commerce and digital entrepreneurship, and ultimately, derail its progress towards a knowledge-based economy.
Telecoms in Nigeria: A Sector in Flux
Nigeria’s telecommunications sector has experienced rapid growth over the past two decades, driven by a liberalized regulatory environment and increased investment from key players such as MTN, Glo, Airtel, and 9mobile.
The sector is currently dominated by MTN, which controls around 38% of the market share, followed by Glo, Airtel, and 9mobile, which hold 27%, 22%, and 13% respectively.
The Nigerian Communications Commission (NCC) serves as the primary regulatory body, overseeing the sector’s development and enforcing policies aimed at promoting competition, improving quality of service, and expanding access to telecommunications services.
However, despite the sector’s growth, challenges persist, including inadequate infrastructure, high operating costs, and inconsistent regulatory policies, which threaten to undermine the sector’s continued development.
Telecom Tariffs: A Barrier to Growth
The recent hike in telecom tariffs in Nigeria is having far-reaching implications for the country’s technological growth, with devastating effects on affordability and accessibility of telecommunications services.
The increased tariffs are exacerbating the digital divide, excluding millions of Nigerians from accessing digital services, and undermining efforts to promote financial inclusion.
E-commerce and digital entrepreneurship are also being stifled, as high data costs make it difficult for businesses to operate online. Furthermore, the hike in tariffs is affecting education and remote learning, as students and teachers struggle to access online resources.
The impact on healthcare and telemedicine is equally dire, with patients and healthcare providers facing challenges in accessing critical online services, ultimately compromising the quality of care.
Experts warn that the tariff hike will have significant long-term implications for the national economy, particularly for vulnerable groups such as students, content creators, and small businesses.
Nigerians Lament
As the telecom tariff hike continues to generate widespread concern, many Nigerians are speaking out about the potential impact on their lives and livelihoods. Experts warn that the tariff hike will have significant long-term implications for the national economy, particularly for vulnerable groups such as students, content creators, and small businesses.
For instance, Lagos-based entrepreneur, Mrs. Folake Adebayo, expressed her frustration with the tariff hike, stating, “As a small business owner, I rely heavily on digital platforms to reach my customers and promote my products. The increased tariffs will make it difficult for me to sustain my business, and I fear that many other small businesses like mine will be forced to shut down.”
Similarly, university student, Malik Adebayo, lamented, “The tariff hike is a nightmare for students like me who rely on affordable data to access online resources and complete assignments. How are we expected to compete with our peers globally when we can’t even afford to go online?”
Content creator and public affairs analyst, Funke Cole, also shared her concerns with Africa Health Report (AHR), saying, “As a content creator, I need to be online constantly to engage with my audience and promote my work. Not only that, I also sell goods online where I reach out to my customers. The increased tariffs will make it difficult for me to sustain my online presence, and I fear that my business will suffer as a result.”
These concerns are echoed by many other Nigerians who are worried about the impact of the tariff hike on their lives and livelihoods.
PTECSSAN Breaks Ranks with NLC Over Telecom Tariff Increase
On February 2, the Private Telecommunications & Communications Senior Staff Association of Nigeria (PTECSSAN) publicly denounced the Nigeria Labour Congress’s (NLC) protest against the recent telecom tariff hike, stating that the increase is necessary to prevent the industry’s collapse.
In a letter to the NLC, PTECSSAN General Secretary Okonu Abdullahi emphasized that the congress had acted “in error” without consulting them, saying “It is our firm belief that the congress leadership has acted in error in taking these decisions without prior consultation with our Union that operates in the sector”.
PTECSSAN highlighted the dire financial straits facing telecom operators, citing the removal of fuel subsidies, fluctuating exchange rates, and rising costs of diesel and petrol as key factors driving up operational costs.
Abdullahi warned that without the tariff hike, telecom operators may be forced to resort to service shedding, resulting in widespread disruptions in communication services across the country.
He appealed to the NLC to reconsider its stance, saying “We plead with the leadership of the Congress to rescind the decision to embark on any demonstration on this matter”.
The Federal Competition and Consumer Protection Commission (FCCPC) also emphasizes that tariff adjustments must be reflected in better services for consumers, with clear mechanisms established to monitor how increased revenues are utilized.
Subscribers Demand Fair Pricing
Nigerian telecom subscribers are protesting the continued implementation of a 50% tariff hike despite an agreement to reduce it to 35%. The National Association of Telecommunications Subscribers (NATCOMS) has called on the Nigerian Communications Commission (NCC) to enforce the new adjustment, arguing that maintaining the higher rate breaches consumer trust.
The tariff hike, initially approved in February 2025 due to rising operational costs, sparked public backlash and led the Nigeria Labour Congress (NLC) to threaten nationwide protests.
In response, the Federal Government formed a 10-man committee, which brokered a deal to lower the increase. Following this, the NLC suspended its planned protest on March 1.
However, telecom operators had already raised prices before the committee’s decision, forcing customers to continue paying the higher rates.
NATCOMS President Deolu Ogunbanjo insists that the agreed-upon reduction must be implemented, as stakeholders widely accepted the compromise.
Global Access to Free Calling
In a world increasingly dependent on digital communication, access to free Voice over Internet Protocol (VoIP) services varies widely. Nations like South Korea, Japan, the USA, Canada, and much of Europe allow unrestricted use of apps like WhatsApp, FaceTime, and Telegram.
However, Africa Health Report (AHR) findings show that in parts of the Middle East, VoIP calls remain restricted unless routed through government-approved platforms. Meanwhile, countries like the USA, Canada, India, and the Nordic nations provide extensive free or unlimited domestic calling options as part of mobile plans, ensuring seamless connectivity for residents.
Beyond mobile networks, some nations still invest in free public phone services. Mexico’s Telmex maintains free public phones for local calls, while Brazil offers complimentary phone booths in select cities.
Since these initiatives provide vital communication lifelines, particularly for those without regular mobile access analysts say Nigeria can take a cue by making tariffs cheap. As the world embraces digital calls, such efforts underscore the continuing importance of accessible and inclusive communication.
Easing the Telecom Burden with Affordable Connectivity
As telecom tariffs continue to rise, experts warn that consumers and businesses alike are feeling the strain. Speaking with our correspondent, an industry analyst, Asiwaju Adewale stresses the need for both immediate relief and long-term reforms.
In the short term, he recommends targeted subsidies for low-income users, tax reductions on telecom services, and transparent pricing regulations to prevent sudden hikes.
“Regulatory bodies must play a proactive role in ensuring fair pricing while balancing industry sustainability.”, Adewale said.
Other experts advocate for infrastructure expansion, fostering competition among providers, and incentivizing investments in cost-effective technologies to enhance affordability in the long run.
Policy experts suggest revisiting spectrum allocation costs, streamlining licensing procedures, and introducing incentives for network-sharing initiatives. Meanwhile, industry leaders emphasize the importance of innovative pricing models, such as data-sharing plans and micro-bundles, to cater to diverse consumer needs.
Experts suggest that with collaborative efforts from the government, telecom operators, and regulatory bodies, a more accessible and affordable digital future is within reach.
