The Nigerian Communications Commission (NCC) has given the green light to a proposal for telecom tariff increases, which will see new rates for calls, SMS, and internet bundles coming into effect in January 2025. This decision follows years of lobbying by major telecom companies in Nigeria seeking price adjustments to better align with economic conditions. Despite facing rising operational costs due to inflation, telecom operators have been unable to adjust prices for over a decade.
An NCC spokesperson confirmed that more details about the tariff adjustments will be shared through an official announcement. The proposed changes could lead to a potential 40% increase in telecom tariffs, with call rates going up 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.
The Minister of Communications, Innovation, and Digital Economy acknowledged the necessity for price revisions, recognizing the industry’s need for such adjustments. The NCC, responsible for reviewing and approving tariff changes in the telecommunications sector, rejected a previous application to double subscription fees for Starlink. The commission aims to strike a balance between the financial impact on subscribers and the operational challenges faced by the industry.
While concerns exist about the impact of rising food inflation on internet usage in a country prioritizing digital inclusion, the current financial strains on telecom companies cannot be ignored. Major telecom providers like MTN Nigeria and Airtel Africa have reported significant losses, emphasizing the urgency for cost-reflective pricing to drive investments and enhance service quality in the long run.