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MTN Nigeria, the country’s largest telecommunications operator, has abruptly reversed a contentious 200% tariff increase on its 15GB weekly data plan following widespread customer outrage and regulatory non-compliance. The company announced the U-turn via its official X (formerly Twitter) account on Thursday, issuing a public apology in Pidgin English to pacify irate subscribers.
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Price Rollback: From N6,000 to N2,000
On Tuesday, MTN quietly implemented a dramatic price hike, raising the cost of its 15GB weekly data bundle from N2,000 to N6,000—a 200% surge that blindsided users. The move violated the Nigerian Communications Commission (NCC)’s 2023 directive capping telecom tariff increases at 50% amid inflationary pressures. By Thursday, MTN retracted the hike, restoring the original N2,000 pricing after a social media firestorm.
Apology in Pidgin: “We Don Cast”
In a candid post titled “Forgive and Forget,” MTN acknowledged its misstep using colloquial Pidgin English to connect with its customer base:
“We know how upsetting it must have been to suddenly wake up to a 200 percent increase on your favourite digital bundle. We could share several reasons and provide explanations, but omo, all that one na story. We don cast. We get it and admit it. Let’s just say na mistake.”
Why the Backlash?
- Regulatory Breach: The hike exceeded NCC’s 50% tariff adjustment limit, raising questions about MTN’s compliance protocols.
- Affordability Crisis: Subscribers criticized the timing as Nigeria battles a 33.7% inflation rate and soaring living costs.
- Lack of Transparency: Customers reported no prior notice, sparking accusations of exploitation.
NCC’s Stance and Market Implications
The NCC has yet to comment publicly, but industry analysts speculate regulators may impose fines or stricter oversight. MTN’s reversal highlights the fragile balance telecom giants face in balancing profitability with consumer affordability in Nigeria’s hyper-competitive market. Rivals like Airtel and Glo could capitalize on the misstep to attract price-sensitive users.
Broader Context: Telecoms Under Pressure
Nigeria’s telecom sector grapples with rising operational costs, including diesel prices, currency volatility, and infrastructure vandalism. While operators have lobbied for tariff hikes to offset these pressures, MTN’s aggressive pricing misfire underscores the risks of alienating a cost-conscious user base.
What’s Next for MTN?
- Regulatory Scrutiny: The NCC may audit MTN’s pricing models to prevent future violations.
- Customer Trust Repair: MTN faces an uphill battle to rebuild goodwill, with social media users demanding compensation for disrupted services.
- Market Share Risks: Competitors could lure disgruntled subscribers with promotional data bundles.
MTN’s pricing debacle
With 164 million mobile internet users in Nigeria, affordability remains critical to digital inclusion. MTN’s pricing debacle serves as a cautionary tale for telecom operators navigating regulatory frameworks and consumer sentiment in volatile markets.
