50% Telecom Tariff Increase Not Across Board

The Nigerian telecommunications industry is set for significant changes as operators implement the tariff adjustments approved by the Nigerian Communications Commission (NCC).

The NCC approved a cap of 50 per cent increase in telecom tariffs, but clarified that this adjustment may not apply uniformly across all operators.

Subscribers are concerned about the potential impact on mobile and internet services as costs for calls, SMS, and data are expected to rise significantly.

Preliminary details indicate that the cost of calls may rise from N11 to N16.5 per minute, SMS charges from N4 to N6, and 1GB of data could increase to N431.25. Analysts estimate that these changes could boost the telecom sector’s annual revenue from calls alone to N6.7 trillion, based on 2023 data showing 205.3 billion minutes of outgoing calls.

However, the NCC said the exact rates will depend on individual competitive strategies. The NCC aims to balance affordability with service quality amid rising operational costs due to inflation and foreign exchange fluctuations

The NCC, the regulatory authority for the telecom sector, announced that it was awaiting detailed proposals from operators on how the adjustments will be applied. The revisions aim to address rising costs in the sector caused by inflation, foreign exchange fluctuations, and increasing operational expenses.

NCC’s director of public affairs, Reuben Mouka, in a telephone interview with LEADERSHIP, clarified that the tariff increases will vary across operators.

“Operators are capped at 50 per cent but the exact charges may differ based on their competitive strategies. Some may charge slightly higher or lower within the approved limits,” Mouka explained.

He added that operators must adhere to the NCC’s Guidance on the Simplification of Tariffs in the Nigerian Communications Sector, published in December 2024.

He, ttherefore, assured the public that NCC remains committed to balancing affordability with the need to sustain quality services.

“The adjustments are necessary to ensure the continued delivery of quality services while safeguarding the industry’s viability. We will review submissions from operators to ensure compliance with regulatory guidelines.

“The NCC has also assured the public that it will closely monitor the implementation of the adjustments to ensure transparency and prevent exploitation. Also, subscribers are encouraged to stay informed and report any issues promptly,” he stated.

Despite assurances, subscribers have voiced concerns about higher costs, particularly given the persistent network challenges.

“If operators must raise tariffs, they should ensure their networks are reliable,” said Comfort Dele, an online vendor.

President of the National Association of Telecommunications Subscribers (NATCOMS), Adeolu Ogunbanjo, also criticised the 50 per cent tariff hike as excessive and a burden on consumers.

“A moderate increase of five per cent to 10 per cent would have been more reasonable,” he argued.

Ogunbanjo urged telecom companies to explore alternative funding options, such as Initial Public Offerings (IPOs) or issuing stocks.

He also pointed to unresolved debts among telecom operators and banks, suggesting that settling these liabilities could strengthen the industry’s financial position without drastically increasing tariffs.

Ogunbanjo disclosed plans to challenge the hike in court, saying, “Telecommunications are essential for education, business, and social interaction. This decision will have far-reaching consequences for millions of Nigerians.”