Nigerians May Pay More for Telecom Services in 2025 As Telcos Secures NCC Approval for Tariff Increase
Olufemi Orunsola
Nigerians may need to pay more to enjoy telecommunication services effective from January 2025 following approval for tariff hike given to telecommunication companies by the Nigerian Communications Commission (NCC).
OPEN TELEVISION NAIJA (OTN) News gathered that the long-awaited approval to effect an upward review of costs of telecom services in Nigeria, ending over a decade of lobbying by major operators like MTN Nigeria, Airtel, and 9Mobile, may be granted presently.
OTN News further gathered given the price hike approval, the new rates for calls, SMS, and internet bundles may take effect in January 2025, with tariffs expected to rise by up to 40%.
OTN News recalls that in a December 20 interview, the minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, acknowledged the need for price adjustments, stating: “We think there may be a need for that”.
The NCC is responsible for reviewing and approving tariff adjustments in the telecommunications industry.
By implications, the new tariff regime may imply that, to make a one minute call may cost N15.40 up from N11 and SMS charges will rise from N4 to N5.60. For data plans, the price of a 1GB bundle will increase from N1,000 to at least N1,400.
OTN News gathered that MTN Nigeria reported a N137 billion loss in 2023, with losses expanding to N514.9 billion in the first nine months of 2024. Airtel Africa also reported losses of $89 million in Financial Year 2024, largely driven by challenges in Nigeria.
Meanwhile, despite the grim outlook in the telecoms sector for much of the year, President of the Association of Licenced Telecommunication Operators of Nigeria (ALTON) Gbenga Adebayo argues that cost-reflective prices will incentivise investment and help improve quality in the long run.
Efforts to reach the spokesperson for the Nigerian Communications Commission (NCC), Reuben Mouka for confirmation of the tariff hike approval did not materialize as at the time of filing this report.
However, if the approval is given, it will mark the end of over a decade of lobbying by telecom giants like MTN Nigeria, Airtel, and 9Mobile, who have been consistently calling for price adjustments to reflect economic realities.
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