After over a decade of deliberations, the Nigerian Communications Commission (NCC) has finally approved a 50% increase in tariffs for telecom services, including calls, SMS, and internet bundles. While this move addresses some financial strains in the industry, stakeholders believe it falls short of the 100% hike they had been advocating for. The adjustment highlights ongoing challenges in the sector, such as underfunded infrastructure and rising operational expenses.
Under the revised policy, telecom operators can adjust their rates within the tariff bands of ₦6.40 to ₦50, as outlined in the NCC’s 2013 Cost Study. Although the announcement did not specify an implementation date, an executive at MTN revealed that the new tariffs would take effect within a week. Customers with existing data plans or airtime before the rollout will not experience immediate price changes unless they make new purchases.
The tariff hike aims to partially bridge the gap between operational costs and revenues, but stakeholders stress that it is insufficient to address the broader systemic issues in the sector. “While this adjustment is a step in the right direction, it does not fully meet our needs for a 100% increase,” said Tony Izuagbe Emoekpere, President of the Association of Telecommunications Operators of Nigeria (ATCON). “However, it will enable operators to invest in infrastructure, improve service quality, and expand coverage.”
Gbenga Adebayo, President of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), echoed similar sentiments, emphasizing that the tariff increase is only part of a larger effort to ensure industry sustainability. “Increasing tariffs is not a standalone solution,” Adebayo noted. “A holistic approach is needed to address challenges like multiple taxation, uniformity in the right of way, and protecting telecom infrastructure.”
The tariff hike is expected to provide financial relief to major operators such as MTN and Airtel, allowing them to better manage operational costs, which have surged by 120%, and to allocate more resources toward improving service delivery. NCC Executive Vice Chairman Aminu Maida has given operators a three-month window to recover losses, after which the regulator will focus on enhancing service quality. Karl Toriola, CEO of MTN Nigeria, highlighted the significance of the adjustment in sustaining the sector. “This tariff increase will support our critical investments in delivering high-quality services to Nigerians while driving the nation’s digital transformation agenda,” he said.
Nigeria’s economic challenges, including currency devaluations, inflation, and the removal of fuel subsidies, have exacerbated the financial pressures on telecom operators. Since the liberalization of the telecom sector in 2001, the naira has experienced significant depreciation—from ₦104 to the dollar in 2001 to between ₦1,500 and ₦1,700 in 2024. Coupled with inflation rates exceeding 33% as of October 2024, the current tariff structure has become unsustainable for operators. “Years of compounded inflation and naira devaluation have significantly increased production costs,” said a telecom CEO who preferred to remain anonymous.
Some industry players argue that a long-term solution lies in deregulating the telecom market entirely, allowing prices to be determined by market forces. The Nigerian Communications Act of 2003 currently mandates the NCC to set price floors and ceilings for telecom services. For example, the price floor for a one-minute call is set at ₦6.40, with a ceiling of ₦50. While operators can set prices within this range, any adjustments require NCC approval—a process often criticized for being slow and restrictive. “The ideal scenario would involve full deregulation of the telecom market,” said a senior telecom executive. “This would give operators the flexibility to adjust prices in real-time based on economic conditions, but it would require a comprehensive review of the existing regulatory framework.”
Alternatively, some stakeholders have proposed implementing fixed timelines for tariff approvals. Under this system, operators could submit price adjustments for approval, and if the NCC does not respond within 90 days, the changes would automatically take effect.
