In a significant move, the Nigerian Communications Commission (NCC) has officially approved a long-awaited tariff increase for telecom services, marking the first such adjustment in over a decade.
The new rates, which will take effect from January 2025, are expected to raise the cost of calls, text messages, and data bundles by as much as 40%, a decision driven by the financial pressures faced by major telecom operators in Nigeria.
According to the NCC’s new pricing structure, call charges will increase from ₦11 to ₦15.40 per minute, while SMS fees will rise from ₦4 to ₦5.60. Additionally, the cost of a 1GB data bundle will see a jump from ₦1,000 to a minimum of ₦1,400.
The NCC has stated that further details regarding the tariff changes will be released in an upcoming announcement, with an emphasis that the adjustments have been designed to balance industry proposals with the broader public interest.
An NCC spokesperson highlighted, “This will benefit both subscribers and operators as we’ve considered feedback from all stakeholders.” The increase comes at a time when the Nigerian telecom industry faces immense financial challenges, with major players such as MTN Nigeria and Airtel experiencing significant losses.
For instance, MTN Nigeria reported a staggering loss of ₦514.9 billion in the first nine months of 2024, following a loss of ₦137 billion in the previous year. Similarly, Airtel Africa’s struggles include $89 million in losses for the fiscal year 2024, largely attributed to adverse conditions in Nigeria.
Dr. Bosun Tijani, Nigeria’s Minister of Communications, Innovation, and Digital Economy, addressed the necessity of the tariff adjustments in a recent interview on Arise TV, citing ongoing economic pressures including a staggering 39.93% food inflation rate.
Despite recognizing the challenges faced by telecom operators, the NCC has remained cautious about not overburdening consumers, as evidenced by its rejection of a proposed price hike from Starlink in October 2024.
While the tariff hike aims to alleviate financial strains on telecom providers, concerns have been raised regarding its potential impact on internet usage among consumers in a country that has been striving for greater digital inclusion.
The NCC’s decision reflects a balancing act between supporting the sustainability of telecom operators and safeguarding the accessibility of communication services for consumers during a period of economic volatility.
In conclusion, the NCC’s approval of the telecom tariff increase heralds a pivotal shift in Nigeria’s telecommunications landscape as it navigates the challenges posed by economic conditions and operator sustainability.
Source: Nigerian Communications Commission, Arise TV Interviews, Industry Reports on Telecom Financials
