By 
By Osasome, C.O
Nigeria to Implement 40% Telecom Tariff Increase in January 2025
The Nigerian government has reportedly approved a 40% increase in telecom tariffs, effective January 2025, though the Nigerian Communications Commission (NCC) has yet to release an official statement. This development comes as the telecom industry grapples with rising operational costs and inflationary pressures.
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Senior officials confirmed the approval to IT Edge News, stating that the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, authorized the upward tariff review. The NCC is expected to make a formal announcement soon.
Proposed Tariff Changes
The tariff increase will raise the cost of services, including:
- Minimum call rate: ₦15.40 per minute.
- SMS: ₦5.60 per message.
- 1GB of data: 40% higher than the current average price of ₦750 (~$0.39).
Operators’ Push for Tariff Hike
Telecom operators, represented by the Association of Licensed Telecommunications Operators of Nigeria (ALTON) and the Association of Telecoms Operators of Nigeria (ATCON), have long lobbied for tariff increases, citing:
- Escalating diesel prices for powering base stations.
- Rising importation costs for telecom equipment.
- Inflation and the naira’s depreciation.
Operators warn that without appropriate tariff adjustments, the industry risks stagnation, network degradation, and potential shutdowns.
Karl Toriola, CEO of MTN Nigeria, previously cautioned that without tariff adjustments, the company might cease operations, jeopardizing services for its 78 million subscribers.
Government’s Balancing Act
While telecom operators push for higher tariffs to ensure sector sustainability, the government has been cautious, emphasizing the potential impact on affordability for millions of Nigerians.
Dr. Bosun Tijani acknowledged the necessity of a tariff review, stating:
“Yes, we think there may be a need for the hike.”
The last telecom tariff review occurred 11 years ago, making this adjustment long overdue given current economic realities.
Industry Experts Sound the Alarm
Gbenga Adebayo, Chairman of ALTON, stressed the urgency of allowing market forces to determine pricing, warning:
“The current pricing regime is not sustainable given the inflationary pressures we face. Government intervention in pricing will only deter investors and lower service quality.”
Similarly, Tony Izuagbe Emoekpere, President of ATCON, emphasized that appropriate pricing is critical to unlocking the full potential of Nigeria’s telecommunications sector.
National Association of Telecommunications Subscribers (NATCOMS) Proposals
In response to the looming tariff hike, NATCOMS recommended a marginal 10% increase instead of the approved 40%, to ensure affordability while addressing operators’ operational challenges.
Economic and Sectoral Implications
The 40% tariff hike is aimed at addressing:
- Rising energy costs: Telecom operators rely heavily on diesel-powered base stations.
- Infrastructure maintenance: Increased investment is required to sustain network growth.
- Depreciation of the naira: Most telecom equipment is imported, increasing costs.
However, experts warn that continued government intervention in pricing could:
- Discourage foreign and local investments.
- Hamper innovation and network expansion.
- Reduce the quality of telecom services.
Future Outlook
With the tariff increase likely to be implemented in January 2025, the NCC faces the challenge of balancing industry sustainability with consumer affordability. The move underscores the critical need for a market-based pricing framework to ensure long-term growth and stability in Nigeria’s telecom sector.
Some consumers have expressed concerns over the tariff hike, criticizing it as another example of the government’s perceived indifference to the struggles of ordinary Nigerians, as rising taxes and other financial burdens continue to weigh heavily on their daily lives.
