Telecom operators in Nigeria may secure approval to increase tariffs for calls, SMS, and data services by the first quarter of 2025. A senior official of one of the country’s major telecom firms, speaking on condition of anonymity, disclosed this development, signaling a possible end to over a decade of frozen rates despite soaring operational costs.
The Nigerian Communications Commission (NCC), which regulates the industry, is reportedly considering the proposed tariff adjustments. If approved, it would mark the culmination of years of lobbying by leading operators such as MTN Nigeria, Airtel, and 9Mobile, who have long argued that the current pricing model is unsustainable given rising inflation and operational challenges.
“We strongly hope the federal government has approved the upward review of tariffs by early 2025,” the telecom official stated. “The sector is bleeding due to soaring operating costs, and some operators are already incurring losses. Without cost-reflective pricing, new investments will remain elusive, and the industry risks collapse,” he added during an interaction with journalists in Lagos.
Industry insiders suggest the anticipated tariff hike could be as high as 40%. This means the cost of a one-minute call may rise from N11 to N15.40, SMS rates could increase from N4 to N5.60, and the price of a 1GB data bundle may go up from N1,000 to at least N1,400.
Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, hinted at the inevitability of such adjustments during a December 20 interview. “We think there may be a need for that,” he remarked, underscoring the growing recognition of the financial strain on operators.
Financial reports from major telecom operators further highlight the sector’s struggles. MTN Nigeria recorded a staggering N137 billion loss in 2023, which ballooned to N514.9 billion by the third quarter of 2024. Similarly, Airtel Africa reported a $89 million loss in the 2024 financial year, largely attributed to challenges in Nigeria, its largest market.
The President of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), Gbenga Adebayo, defended the need for tariff adjustments. “Cost-reflective pricing will encourage investment in the sector and lead to improvements in service quality,” he argued.
Despite growing optimism among telecom operators, the Nigerian Communications Commission’s spokesperson, Reuben Mouka, could not be reached to confirm the proposed approval at the time of filing this report.
As the nation awaits official confirmation, concerns are mounting over the potential burden on consumers. However, industry stakeholders maintain that the tariff adjustment is critical to stabilizing the sector and ensuring long-term sustainability.
By Saifullahi Muhammad
