Nigeria’s telecom regulator, the Nigerian Communications Commission (NCC), has approved long-awaited tariff hikes for calls, SMS, and internet services, set to take effect in January 2025.
This move ends over a decade of lobbying by telecom giants like MTN Nigeria, Airtel, and 9Mobile, who have faced mounting operational costs amid inflation.
Why it matters
The approval marks the first price adjustment in 11 years, potentially reshaping Nigeria’s telecom landscape. The increases come at a time when food inflation is at 39.93%, raising concerns about digital inclusion and affordability.
By the numbers
- Calls: From ₦11 to ₦15.40 per minute (+40%)
- SMS: From ₦4 to ₦5.60 (+40%)
- Data: 1GB bundle from ₦1,000 to at least ₦1,400
The context
- The NCC has historically prioritized subscriber affordability, even rejecting Starlink’s proposal to double subscription fees to ₦75,000 in October 2024.
- Yet, rising operational costs have strained telcos. MTN Nigeria reported ₦514.9 billion in losses by Q3 2024, while Airtel Africa recorded $89 million in FY 2024 losses, driven by Nigerian market challenges.
What they’re saying
- NCC spokesperson: “This announcement will benefit the subscribers and operators because we have taken into account the proposals from the industry and the public.”
- Dr. Bosun Tijani, Minister of Communications: “We think there may be a need for [price adjustments].”
Yes, but: The hikes could reduce internet usage and widen the digital divide in a country striving for greater digital inclusion. However, the telecom industry argues that cost-reflective pricing is essential for sustaining services and attracting investment.
What’s next
The NCC is expected to provide further details on the tariff adjustments in an official announcement soon.
Source: TechCabal
