Effective Friday, January 10, 2025, there will be an increase in pricing for voice calls, SMS, internet data plans, and other telecommunication services in Nigeria. The Nigerian Communications Commission (NCC) is set to announce the tariff adjustment after pressure from telecom operators due to inflation and currency devaluation affecting current rates. The tariff hike, expected to be revealed on Friday, follows extensive negotiations between telcos and regulatory bodies.
The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, confirmed the impending price adjustment during a stakeholders’ meeting. While recognizing the necessity for tariff changes, Tijani assured the public that the increase would not reach the 100% mark as requested by some telecom operators. He explained that operating costs for telecom companies have risen by over 300% in the past 18 to 24 months.
Tijani stated, “It will not be by 100 percent. The NCC will soon provide clear directives on the adjustment.” Telecom companies have been advocating for a tariff increase since at least May 2022, proposing a 40% hike. This adjustment would raise the cost of a phone call, SMS, and data bundles accordingly.
Operators argue that maintaining service levels has become challenging due to economic factors. Despite the necessity for tariff adjustments, some companies are suggesting a gradual increase to alleviate the financial burden on consumers.
CEO of Airtel Nigeria, Dinesh Balsingh, expressed understanding for a phased approach in a statement. He emphasized the importance of supporting customers through gradual changes to enhance services and infrastructure, ensuring Nigeria remains competitive in the digital economy.
While the tariff increase aims to help operators cope with rising costs, the government is also planning to invest in telecom infrastructure to complement private efforts. The federal government’s initiative to deploy a 90,000km fiber optic network nationwide starting in Q2 2025 is intended to expand broadband access across all local governments.
Minister Tijani emphasized the importance of balancing tariff adjustments with government-led infrastructure development to ensure widespread access to reliable telecom services.
The telecom tariff increase is intended to enhance service quality, with the government taking a more active role in infrastructure investments. The federal government’s plan to deploy a 90,000km fiber optic network across all 774 local governments in the country is scheduled to commence in the second quarter of 2025.