In January 2025, the Nigerian Communications Commission (NCC) approved a significant telecom tariff increase of 50%, which was implemented on February 11, 2025.
This decision, aimed at ensuring the sustainability of the industry, has garnered mixed reactions from the public.
The tariff hike is attributed to rising inflation and foreign exchange volatility, resulting in higher operational costs for telecom operators.
Key Points Nigerians Should Know:
- Uniform Tariff Increase Across Operators: The 50% tariff increase applies to all Nigerian telecom operators, including MTN, Airtel, 9Mobile, and Glo. Consumers will see higher costs for SMS, voice calls, and data bundles. SMS charges have increased from NGN4 to NGN6, voice calls now cost NGN16.25 per minute (up from NGN11), and 1GB of data has risen to NGN525 from NGN350.
- Historical Context: This is the first telecom tariff increase in 11 years, with the last adjustment occurring in 2013 when the inflation rate was 8.5%. The current inflation rate is 34.8%. The telecom industry has been the last essential service provider to raise tariffs following the devaluation of the Naira.
- Comparative Data Prices: Despite the increase, Nigeria still offers some of the lowest data prices in Africa. According to the International Telecommunications Union (ITU), 1GB of data costs $2.35 in Nigeria, compared to $2.66 in Ghana, $2.92 in Kenya, and $7.98 in South Africa.
- Quality of Service Mandate: The NCC has mandated that telcos improve their network quality within three months, with intensified scrutiny and heavier penalties for non-compliance. This condition was part of the tariff increase approval process.
- Industry Survival: The telecom industry has faced substantial losses due to foreign exchange volatility and high operational costs. For instance, Airtel reported a loss of NGN 514.9 billion in the first nine months of 2024, and MTN posted a loss of $89 million in the fiscal year 2023/2024. The tariff increase is seen as crucial for the industry’s survival and to prevent further destabilization.
This overview provides important insights into the recent telecom tariff increase and its implications for Nigerian consumers.