The 50% hike in telecom tariff has drawn anger and anxiety across Nigeria. For instance, the Association of Telephone, Cable TV and Internet Subscribers of Nigeria (ATCIS-Nigeria) has given telecom operators a two-week ultimatum from the date of the tariff hike implementation in February 2025, to achieve significant improvement in service quality, warning that it will return to confront telecoms operators if services remain the same after two weeks of implementation of the 50% hike in tariff.
For millions, staying connected is no longer a matter of convenience but survival. The country, often dubbed Africa’s largest digital economy, now risks leaving its most vulnerable populations behind.
The effects of the price surge will ripple through every corner of society.
Students are on the brink of losing access to online learning platforms. Job seekers face additional hurdles in their search for employment. Doctors who rely on telemedicine to reach underserved areas see their work threatened. SMEs who rely on the internet to conduct their business risk increased operational expenses. Across all sectors, the human cost of this decision is mounting.
“How do I continue learning?”
AbdulRahman Yusuf, a 21-year-old university student in Kano, has struggled to adjust since his classes moved online in 2020.
He uses his phone to attend lectures, download study materials, and communicate with lecturers. Now, with the 50% tariff increase, Ahmed may find it herculean to balance his academic needs with his financial reality.
“My parents struggle to give me ₦10,000 for monthly expenses,” he says.
Normally, I use ₦4,000 for data. Now, I may need over ₦6,500. That’s more than half my budget gone just for internet. How do I eat or buy my textbooks?
AbdulRahman considers free Wi-Fi at his university, but power outages and network issues make it unreliable. He fears falling behind in his studies.
“What’s the point of an online degree if you can’t even afford to stay online?” he asks.
For students like AbdulRahman, the tariff increase could mean dropping out of school.
In a country where youth unemployment stands at 4.3 per cent as of the second quarter of 2024 from 5.3 per cent recorded in the first quarter of 2024, the loss of education is a devastating blow.
Telemedicine on the edge
Dr. Olumide Adeniyi runs a telemedicine service in Osun, providing virtual consultations to patients in rural areas. Many of his clients rely on low-cost data plans to access healthcare. The tariff hike jeopardises the lifeline his platform provides.
“A lot of my patients are farmers or artisans who live far from hospitals,” Dr. Adeniyi says.
“They can’t afford to spend ₦1,000 every time they want to consult a doctor. That’s why telemedicine is working—it’s affordable and accessible.”
Now, he fears his patients will call less frequently and that some will send text messages instead, hoping to save money. Others will stop contacting him altogether.
I have a diabetic patient who needs weekly check-ins. She told me last week she’d rather wait until her next hospital visit if data becomes too expensive. That’s risky for someone managing a chronic illness.
The situation also affects the doctor’s operations. Running a telemedicine platform requires stable internet, and its costs have skyrocketed.
“I may have to cut down on free consultations for low-income patients because I may not be able to sustain it anymore,” Dr Adeniyi admits.
The job seeker’s struggle
For Joseph Okafor, a 28-year-old unemployed graduate in Lagos, internet access is vital for his job search. He spends hours browsing job boards, submitting applications, and attending virtual interviews.
“The job market is already tough,” Joseph says. “Now, with the proposed data increase, it may feel impossible. Last month, I spent ₦5,000 on data just for job hunting. After the increase, I may need at least ₦7,500.”
Joseph says employers rarely reimburse data costs for online interviews or tests. For someone without a steady income, these expenses pile up.
I’ve had to miss application deadlines because I couldn’t afford data that day, he says. It feels like being poor is a crime in this country.
What will happen if he has to spend even more?
Essential services out of reach
Beyond education, healthcare, and job searches, the tariff hike will affect access to essential services.
Government programs that require online registration, like the Corporate Affairs Commission (CAC), will become harder to navigate for low-income citizens.
Fatima Adeyemo, a market vendor in Lagos, recently tried to register on the CAC website but gave up after spending over ₦1,000 on data.
“I needed to register my business formally, but I couldn’t afford the extra costs,” she says, asking what will be the case if she decides to pick it up again and data costs have gone up.
Telecommunications have become as essential as electricity or clean water, yet the price hike will make them a luxury.
To help you understand, if the 50% increase is adopted, the average cost of phone calls will rise from ₦11 to ₦16.50 per minute, SMS charges will jump from ₦4 to ₦6, and the price of a 1GB data bundle will increase from ₦287.50 to ₦431.25.
For many Nigerians, these increases are not just minor adjustments—they represent significant barriers to essential communication and digital access. What was once a necessary but manageable expense could now force millions to choose between staying connected and meeting basic needs.
Limited alternatives
Some Nigerians hope to switch to cheaper data plans or call/SMS rates – especially because there is competition, but these come with limitations.
For instance, low-cost bundles often offer slower speeds and reduced data caps, making them impractical for tasks like streaming lectures, attending virtual meetings, or sending media files via the internet.
“I have tried cheaper plans before now, but it was too slow to upload my assignments or have meetings with lecturers,” AbdulRahman says. “I ended up spending more money buying additional data.”
“Even if it were a normal phone call, how much would I be looking at?”
Switching providers isn’t always feasible, either. Network coverage varies widely, especially in rural areas where only one or two providers operate.
“It’s not like I can choose another network,” Dr. Adeniyi points out. “In my area, only one provider has good coverage. If they raise their prices, I have no choice but to pay.”
Is the telecom tariff increase fair?
Telecom companies argue that the tariff increase is necessary to cover rising operational costs and invest in infrastructure. But critics question whether a 50% hike is justified.
Nigeria’s data costs are already among the highest in Africa when adjusted for income.
According to a report by the Alliance for Affordable Internet, Nigerians spend an average of 4.8% of their monthly income on 1GB of data, far above the UN-recommended threshold of 2%.
Other countries are reducing data costs to boost digital inclusion. For instance, in Niger, the Smart Villages for Rural Growth and Digital Inclusion Project helped reduce the retail price of 1GB per month by 71 per cent between 2019 and 2022.
Consumer protections needed
Advocates are calling for stronger consumer protections to prevent further harm. Price regulation, improved transparency in data plans, and easier switching between providers are some proposed solutions.
“The Nigerian Communications Commission (NCC) needs to step up,” says Ade Akinwunmi, a concerned Nigerian. “They should ensure telecom companies don’t exploit consumers. The goal should be affordable internet for all, not just the wealthy.”
For Joseph, the job seeker, the solution lies in reducing costs. “If the government can subsidise fuel, why not data?” he asks. “We can’t grow as a country if we leave people disconnected.”
In light of this, the Federal Competition and Consumer Protection Commission (FCCPC) has warned service providers like MTN, Glo, Airtel and others to ensure improved service delivery to their customers. This was contained in a press release signed by the commission’s Director of Corporate Affairs, Ondaje Ijagwu.
The risk of a digital divide
The 50% tariff hike risks widening Nigeria’s digital divide, leaving millions unable to participate in the digital economy. For students, small business owners, and low-income families, the internet is not a luxury—it’s a necessity.
Unless urgent action is taken, the price of staying connected could come at the cost of education, healthcare, and economic opportunities. The question remains: who will bear the burden of progress, and at what cost?
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