Breaking: NCC approves 50% tariff increase for calls, SMS, data

Telecom operators in Nigeria are set to implement a new tariff structure following the approval of their requests for adjustments by the Nigerian Communications Commission (NCC).

This decision, announced on January 20, 2025, has sparked a mix of reactions across the country as households and businesses prepare for higher costs amid economic pressures.

The NCC, in a statement signed by its Director of Public Affairs, Reuben Muoka, explained that the adjustment is necessary to address the widening gap between rising operational costs and stagnant tariffs.

According to the statement, “Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators.”

The approved adjustment, capped at 50%, is far lower than the over 100% increase requested by some operators, reflecting the Commission’s efforts to balance consumer protection with industry sustainability.

Telecom operators, including MTN, Glo, Airtel, and 9mobile, had repeatedly called for tariff increases over the past year, citing the rising cost of operations driven by inflation, foreign exchange volatility, and the increased cost of diesel and network maintenance.

Industry insiders noted that the telecom sector has absorbed these rising costs for years, leaving operators with thinning profit margins that threaten their ability to maintain and expand services.

Minister of Communications hinted at tariff reviews on TV

During a recent TV interview, the Minister of Communications and Digital Economy, Dr Bosun Tijani addressed public concerns about the pending tariff adjustments.

When asked if the government is prioritising the profit of the telecom sector over the affordability of Nigerians, he explained that the government highly considers the burden on the people which is why the tariff hike will not be 100 per cent as requested by telecom companies.

“We’ve already made it clear we are not going to approve a 100 per cent. These companies are asking for 100 per cent stating clearly that this is what they believe they need to get. But what we are looking at in terms of the sustainability of the sector is that if this is a sector that is responsible for driving growth in our country it would be harmful to our people to allow them to increase by 100 per cent,” the minister said.

He added that the government and the NCC have worked to ensure that the adjustments remain fair and transparent to the public.

This decision follows extensive consultations with key stakeholders, including consumer advocacy groups, telecom operators, and policymakers.

According to the NCC, the move is designed to stabilise the industry and enhance service delivery, improve network quality, and expand coverage across underserved areas.

The NCC’s promises and mandates

The NCC reassured Nigerians that the approved adjustments would be implemented transparently and with a focus on fairness.

Operators have been directed to clearly educate consumers on the new rates while demonstrating measurable improvements in service delivery. The Commission also emphasised its commitment to ensuring that tariff rates remain within the guidelines set in its 2013 Cost Study.

The NCC has prioritised striking a balance between protecting telecom consumers and ensuring the sustainability of the industry, including the thousands of indigenous vendors and suppliers who form a critical part of the telecommunications ecosystem.

The NCC’s recently issued Guidance on Tariff Simplification, 2024 will guide how operators structure and communicate their pricing models. Beyond the immediate adjustments, the Commission reiterated its dedication to fostering a resilient and inclusive telecommunications sector that drives Nigeria’s digital economy.

Earlier, the Association of Telephone, Cable TV, and Internet Subscribers of Nigeria (ATCIS) publicly opposed the proposed telecom tariff hike, which was initially capped at 60 per cent and deliberated by the federal government.

The group condemned the move, describing it as a breach of trust and a contradiction of a prior consensus reached with the Nigerian Communications Commission (NCC) and other key stakeholders.

In a press release issued on Sunday, the National President of ATCIS, ‘Sina Bilesanmi, who represents over 220 million subscribers nationwide, expressed deep disappointment. He reminded the NCC and telecom operators of the agreement made during a January 9, 2025, meeting, where all parties, including subscribers, were assured of robust consultations before any tariff adjustment would be implemented.

“Telecom operators must respect the rights of the telecom subscriber advocacy body and comply with the provisions of the NCC Act. The NCC should mandate operators to engage with ATCIS for meaningful consultation, involvement, enlightenment, and engagement,” Bilesanmi stated. His remarks underscored the association’s demand for greater transparency and accountability in decisions affecting the millions of Nigerians who rely on telecom services daily.