The Nigerian Communications Commission (NCC) has approved a long-awaited increase in telecommunications tariffs, bringing to an end over a decade of lobbying by major operators such as MTN Nigeria, Airtel, and 9Mobile. The new rates for calls, SMS, and internet bundles will take effect in January 2025, with tariffs expected to rise by up to 40%.
Under the revised structure, call charges will increase from ₦11 to ₦15.40 per minute. The cost of SMS will rise from ₦4 to ₦5.60, and a 1GB data bundle will now cost at least ₦1,400, up from ₦1,000. The NCC has promised to provide more details in an upcoming official announcement, emphasizing that these adjustments balance industry proposals with public interests.
“This will benefit both subscribers and operators, as we have considered feedback from all stakeholders,” stated an NCC spokesperson.
Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, recognized the need for this adjustment, citing economic pressures during a recent interview on Arise TV. Meanwhile, the NCC is mindful of not overburdening subscribers, having previously rejected a proposed price hike from Starlink in October 2024.
This tariff increase comes at a time when food inflation stands at 39.93%, raising concerns about potential reductions in internet usage in a country focused on digital inclusion. However, the financial strain on telecom operators has been significant, with MTN Nigeria reporting a loss of ₦514.9 billion in the first nine months of 2024, following a ₦137 billion loss in 2023. Additionally, Airtel Africa faced $89 million in losses for FY 2024, mainly due to challenges in Nigeria.
Gbenga Adebayo, President of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), supports this tariff increase. He argues that cost-reflective tariffs will encourage investment and enhance service quality over the long term.
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