There are strong indications that the Nigerian Communications Commission (NCC) intends to approve a long-pending proposal to hike telecom tariffs resulting in increased call, SMS, and internet bundle rates anticipated to go into effect January 2025.
Telecom giants like MTN Nigeria, Airtel, and 9Mobile for over 10 years lobbied for upward price reviews to reflect the nation’s current economic reality which include rising operating costs, currency instability and soaring inflation.
The NCC is preparing to make an official announcement of the tariff hike, according to Tech Cabal.
Read also: Malawi adopts new protocols to enhance emergency telecommunications during disasters
“This announcement will benefit the subscribers and operators because we have taken into account the proposals from the industry and the public,” TechCabal cited an NCC spokesperson as saying.
Telecom tariffs to increase by 40%
Existing proposals suggest that telecom rates may increase by as much as 40%. Should it be implemented, SMS fees will go from N4 to N5.60 and phone call rates will go from N11 to N15.40 per minute. A 1GB bundle for data plans will now cost at least N1,400 instead of just N1,000.
In an interview on Arise TV on December 20, Dr Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, acknowledged the necessity of price modifications, saying: “We think there may be a need for that.”
The NCC is in charge of examining and approving changes to tariffs in the telecom sector. It denied Starlink’s request in October 2024 to raise subscription prices to N75,000.
Although the commission seeks to balance customers’ financial burden, it acknowledges that operational issues facing the sector may have an impact on investment and service quality.
Read also: Airtel, K2 Telecom renew partnership to connect, empower Ugandan communities
Financial losses in the telecom sector due to rising inflation
Concerns that the telecom pricing hike may result in less internet usage in a nation that prioritises digital inclusion. This has been exacerbated by rising food inflation (39.93 percent). However, as a result of the existing state of affairs, the telcos have suffered large financial losses.
MTN Nigeria, for example, recorded losses of N137 billion in 2023 and N514.9 billion in the first nine months of 2024. Additionally, Airtel Africa reported $89 million in losses in FY 2024, primarily due to difficulties in Nigeria.
Even though the telecom industry had a bleak forecast for most of the year, Gbenga Adebayo, president of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), contends that cost-reflective pricing will encourage investment and eventually contribute to quality improvement.