The Nigerian Communications Commission (NCC) has approved a telecom tariff increase, set to take effect in January 2025. This decision follows over a decade of appeals from operators like MTN Nigeria, Airtel, and 9Mobile, who have faced rising operational costs without corresponding price adjustments.
The approved adjustments could lead to a 40% increase in telecom tariffs. Specifically, the cost of a phone call may rise from ₦11 to ₦15.40 per minute, SMS charges from ₦4 to ₦5.60, and a 1GB data bundle from ₦1,000 to at least ₦1,400.
Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, acknowledged the necessity of these adjustments, stating, “We think there may be a need for that.”
The NCC aims to balance the financial impact on consumers while addressing the operational challenges faced by service providers. In October 2024, the commission denied Starlink’s request to double its subscription fees to ₦75,000, demonstrating its commitment to protecting consumer interests.
The anticipated tariff increase has raised concerns about its potential effect on internet usage, especially given Nigeria’s focus on digital inclusion. However, telecom companies have reported significant financial losses due to the prolonged period without price adjustments. MTN Nigeria reported a ₦137 billion loss in 2023, which expanded to ₦514.9 billion in the first nine months of 2024. Similarly, Airtel Africa reported losses of $89 million in the 2024 fiscal year, primarily due to challenges in Nigeria.
