Nigerians to Pay More as NCC Approves 50% Tariff Rise

The Nigerian Communications Commission (NCC) has approved a 50% tariff increase for telecom services, the first in nearly 11 years. Once implemented, Nigerians will see call rates rise from ₦11 to ₦16.5 per minute, SMS costs increase from ₦4 to ₦6, and one gigabyte of data climb to ₦431.25.

The path to this tariff adjustment began in October 2024 when telecom operators approached the NCC with a request for a 100% increase in voice and data tariffs, citing operational challenges, including naira devaluation and inflation. However, the NCC rejected this steep request, considering it too burdensome for consumers. Instead, the commission opted for a 50% cap to strike a balance between industry sustainability and consumer protection.

“The adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” a statement from the NCC read.

The increase has sparked concerns about affordability in a country already grappling with high inflation, which stood at 39.93% for food prices; the highest in three decades. Concerns mount that the higher tariffs could reduce internet usage in Nigeria, where digital inclusion is a national priority.

The potential implications are far-reaching. Individuals, particularly in low-income households, may struggle to afford basic telecom services, while small and medium-sized enterprises (SMEs) relying on these services could face higher operational costs, potentially squeezing profitability, and this could slow the growth of internet penetration and hamper digital inclusion efforts, threatening Nigeria’s ambitions for a knowledge-based economy.

However, industry insiders argue that the increase was necessary to stem financial losses in the telecom sector. Operators like MTN Nigeria and Airtel Africa have faced significant challenges. MTN Nigeria reported losses of ₦137 billion in 2023, which ballooned to ₦514.9 billion in the first nine months of 2024. Similarly, Airtel Africa posted a $89 million loss in FY 2024, primarily due to challenges in Nigeria.

President of the Association of Licenced Telecommunication Operators of Nigeria (ALTON), Gbenga Adebayo, defended the move, emphasizing that cost-reflective pricing is critical for attracting investment and improving service quality.