Reps move to halt 50% tariff hike as telecom operators begin implementation

As telecom operators such as MTN Nigeria begin the implementation of the 50 per cent telecom tariff hike, the House of Representatives has directed the Nigerian Communications Commission (NCC) and the Minister of Communications, Innovation, and Digital Economy to suspend the tariff increase.

During Tuesday’s plenary session, the lawmakers argued that the tariff hike by the communications regulator would place a higher burden on Nigerians in the wake of rising inflation, economic hardship, and the removal of fuel subsidies.

The intervention came after a motion of urgent public importance titled “Need for the Nigerian Communications Commission not to approve the impending hike in the telecommunications tariffs,” was raised by a member of the People’s Democratic Party from Bayelsa State, Oboku Oforji. 

Oforji, whose motion sought to halt the tariff hike, pointed out that while telecom operators justified the tariff hike by citing rising operational costs and the need for improved service delivery, the timing was problematic.

While referencing the National Association of Telecoms Subscribers’ rejection of the tariff hike, he cited that coupled with economic hardship, inflation hit a record 34.6 per cent in November 2024 and another financial burden following the removal of fuel subsidies. 

He further argued that small businesses that rely heavily on affordable telecommunication for operations, marketing, and customer engagement, will face additional financial burdens.

“It is estimated that a 10 per cent increase in telecommunications costs would reduce small business profitability up to 7 per cent, potentially leading to the closure of businesses,” Oforji said.

Oforji, however, noted that the telcos must first address long-standing issues related to poor network service before implementing a price increase. He added that with a poor network, informal sector workers who depend on affordable mobile data to access gig work opportunities may find it harder to stay connected.

“Affordable connectivity is a must for progress in critical sectors like digital banking, education, healthcare, agriculture and e-governance.” 

Another lawmaker from Edo State, Billy Osawaru, who emphasized how Nigerians suffer at the hands of policy failures called on the service providers to first improve the quality of their services before coming up with a hike in tariff.

“In the developed world, people are not used to carrying two mobile phones but this is the practice here. The thinking is if there is no service in one, you might be lucky with the other one. I believe that this increase in tariff should wait until services improve,” he said.

Also Read: MTN implements tariff hike: 15G data goes from 2,000 to 6,000.

Telecom tariff hike implementation 

The 50 per cent telecom tariff hike was scheduled to take effect nationwide starting Monday. While MTN, the country’s largest telecommunications provider, had already started implementing the revised rates as of Tuesday, the likes of Globacom, Airtel, and 9mobile are yet to adjust their pricing structure. 

MTN’s data pricing adjustment saw the 15GB Weekly Plan (7 days) increase from ₦2,000 to ₦6,000, 100GB bundle now ₦25,000 for 90GB, up from the previous ₦20,000 for 100GB.  Also, the 600GB bundle from ₦75,000 for 600GB is now ₦120,000 for 480GB. 

While confirming the price changes in response to a customer inquiry on X, MTN responded “Y’ello! Thanks for stopping by, We apologize for any inconvenience and delayed response. A price increase has been implemented to enhance our services and serve you better, which is why you are seeing the updated amount.”

It is believed that the implementation is a gradual process as some data pricing plans remain unchanged. Punch reported that a senior MTN executive, whose name was withheld, attested to the development. 

“Yes, we’ve started updating our price lists. However, this process is gradual, and we haven’t completed it for all products yet. From tomorrow (Wednesday), prices of other MTN products will be adjusted. We are doing it in phases. Not all the prices went up, some didn’t change, some are still below 50 per cent,” the source added.

While other key operators in the telecom industry have not yet rolled out the new tariffs, there is a possibility of an update soon. Whereas the House of Rep pronouncement might change games.

“As far as I know, every operator has commenced. This is an industry-wide decision, not an operator decision. Our prices have never been uniform, and the decision was made collectively on Monday. Every operator must have begun, even if the rollout is not yet fully completed,” an Airtel executive told The PUNCH.

Also, on the right side of the tariff hike, the Association of Licensed Telecommunications Operators of Nigeria has again defended the tariff increase, arguing that it is vital for the long-term sustainability of the sector.

The Chairman of ALTON, Gbenga Adebayo said that sustained underinvestment in the telecom sector could lead to an irreparable decline in services.

“I understand that a price review is necessary for the survival of the telecom sector. None of us can afford to see this sector collapse. The inability to recover investments in the telecom industry has made sustainability increasingly difficult. When there is prolonged underinvestment, it becomes virtually impossible to recover.”

He noted that lawmakers would come to understand the necessity of the adjustment after fully assessing the situation. “The public’s concerns are valid, but this tariff increase is essential for sustaining the sector,” he said.