Telcos May Hike Call, Data Tariffs by Early 2025

Telecom operators in Nigeria may soon receive approval to increase call and data tariffs, potentially before the end of the first quarter of 2025. A senior official from one of the major telecom companies, speaking anonymously, revealed that the Nigerian Communications Commission (NCC) is expected to authorize the adjustment of rates for calls, SMS, and internet bundles.

If granted, this would mark the conclusion of over a decade of advocacy by telecom giants such as MTN Nigeria, Airtel, and 9Mobile, which have consistently argued for tariff reviews to reflect the country’s economic realities. Operational costs, driven by inflation, have surged over the years, yet telecom rates have remained unchanged for 11 years.

Industry insiders predict that the tariffs could increase by as much as 40%. For instance, the cost of a one-minute call might rise from N11 to N15.40, SMS charges could jump from N4 to N5.60, and the price of a 1GB data bundle may increase from N1,000 to at least N1,400.

In an interview on December 20, the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, acknowledged the possibility of a tariff review, stating, “We think there may be a need for that.” The NCC, responsible for overseeing and approving such adjustments, has yet to confirm any decision on the matter.

Telecom operators have highlighted the financial challenges plaguing the sector. MTN Nigeria reported losses of N137 billion in 2023, with these expanding to N514.9 billion in the first nine months of 2024. Similarly, Airtel Africa recorded a loss of $89 million for the 2024 financial year, largely attributed to its Nigerian operations. Industry stakeholders warn that without price adjustments, the sector could face further financial strain, deterring investment and impacting service quality.

Gbenga Adebayo, President of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), emphasized that cost-reflective pricing is essential for attracting investments and enhancing service delivery. However, as of yesterday, the NCC spokesperson, Reuben Mouka, was unavailable to confirm the status of the proposed tariff hike.