By Okafor Joseph Afam | January 21, 2025

The cost of phone calls, data, and SMS in Nigeria will rise by 50% following the approval of tariff hikes by the Nigerian Communications Commission (NCC) on Monday.

This adjustment increases the minimum price for calls to N9.6 per minute, up from N6.40, with the maximum price capped at N50 per minute. The average price of calls will now stand at N16.5 per minute, up from N11. SMS costs will rise to N6 from N4, while 1GB of data will now cost N431.25, compared to the previous N287.5.

In a statement signed by Reuben Muoka, NCC’s Director of Public Affairs, the commission noted, “The adjustment, capped at a maximum of 50% of current tariffs, though lower than the over 100% requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.”

This increase aligns with earlier indications from Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, who last week disclosed that telecom tariffs would rise by between 30% and 60%.

Decade-Long Push for Tariff Increases

The approval marks the end of a decade-long push by telecommunications operators for tariff adjustments. The telcos have long argued that operational costs have surged, with a reported 300% increase in expenses over the years due to inflation, currency devaluation, and other economic pressures.

“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators,” the NCC explained. It added that the hike aims to bridge the gap between operational costs and service delivery while adhering to the tariff bands stipulated in the 2013 NCC Cost Study.

Investments in Infrastructure and Improved Services

The NCC emphasized that the new rates would ensure operators can invest in infrastructure, leading to improved network quality, better customer service, and expanded connectivity.

Between January and September 2024, telecom giants MTN Nigeria and Airtel Nigeria reduced their capital expenditures due to the challenging economic environment. MTN’s core capex fell by 27.79% to N217.64 billion, while Airtel’s dropped by 36.59% to $149 million.

Karl Toriola, MTN Nigeria’s CEO, stated, “This balance of tariff increases alongside investment commitments means the telecoms industry will have the confidence to invest and a clear pathway back to sustainability. Higher prices will lead to better networks and improved customer experiences.”

Airtel Nigeria’s CEO, Dinesh Balsingh, added, “The increasing demand for digital services in education, banking, and healthcare requires continuous upgrades to our networks. These investments come at a cost that must be proportionally shared to guarantee long-term viability.”

Consumer Backlash

However, the tariff hike has drawn criticism from consumer groups, particularly in the face of rising inflation, which reached 34.8% in December 2024. The National Association of Telecoms Subscribers (NATCOMS) described the hike as exploitative.

“This, undoubtedly, is against the public interest, contrary to the false narrative of NCC that described the recent adjustments as pro-public interest,” NATCOMS stated.

As subscribers brace for the impact of the higher rates, telecom operators and regulators face the challenge of balancing profitability with consumer affordability in a tough economic climate.