By Jessica Osajie / Posted December 30, 2024
Amidst controversy and palpable consumers’ concerns, the Nigerian Communications Commission (NCC) has confirmed a telecom tariff hike set to take effect in January 2025, marking the first major rate adjustment in over a decade. This development follows years of lobbying by key telecom operators such as MTN Nigeria, Airtel, and 9Mobile, who have cited increasing operational costs and inflationary pressures as drivers for the change.
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The approved new tariff details are:
Call Charges: Increase from ₦11 to ₦15.40 per minute.
SMS Costs: Rise from ₦4 to ₦5.60 per message.
Data Bundles: A 1GB data bundle will now cost at least ₦1,400, up from ₦1,000.
The NCC emphasized that the revised tariffs aim to strike a balance between the financial sustainability of telecom providers and the economic realities of consumers. While some stakeholders have expressed concerns about affordability, the Commission is expected to provide more context and specifics in an official statement soon.
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Stakeholders and consumers are worried about the implications on layers of usage for all parties. For Consumers, the increases may impact usage patterns, prompting more reliance on cost-saving alternatives like bundled plans and over-the-top (OTT) services (e.g., WhatsApp and Skype for calls and messaging). For Operators, the adjustment offers relief from profit-margin pressures, potentially allowing for enhanced network infrastructure and service delivery.
But the Public is concerned that the hike may spark intense debates over affordability and accessibility, particularly for lower-income users who rely on affordable telecom services.
However, the NCC is expected to outline additional measures to mitigate the impact on consumers while ensuring the telecom sector remains competitive and efficient.
“This will benefit both subscribers and operators as we’ve considered feedback from all stakeholders,” an NCC spokesperson said.
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Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, acknowledged the need for the adjustment, citing economic pressures during a recent interview on Arise TV. Meanwhile, the NCC remains cautious about overburdening subscribers, previously rejecting a proposed price hike from Starlink in October 2024.
The tariff increase comes amid rising food inflation of 39.93% and fears of reduced internet usage in a country prioritizing digital inclusion. However, the financial strain on telecom operators has been severe, with MTN Nigeria reporting a ₦514.9 billion loss in the first nine months of 2024, following a ₦137 billion loss in 2023. Airtel Africa faced $89 million in losses for FY 2024, largely due to challenges in Nigeria.
Gbenga Adebayo, President of The Association of Licensed Telecommunication Operators of Nigeria (ALTON), speaking through its President, Gbenga Adebayo, said they support the move, arguing that cost-reflective tariffs will incentivize investment and improve service quality in the long term.
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NOTE: Jessica is on Student Industrial Work Experience Scheme (SIWES) at DDNEWSONLINE.COM from the Department of Mass Communication, National Open University of Nigeria (NOUN).