The Nigerian Communications Commission (NCC) has given the green light to tariff hikes for calls, SMS, and internet services in Nigeria. This decision, set to take effect in January 2025, marks the first adjustment in telecom prices in over a decade. The move is seen as a response to growing operational costs faced by telecom providers like MTN Nigeria, Airtel, Glo, and 9Mobile, amid the country’s inflationary pressures.
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What Does This Mean for Subscribers?
From January 2025, subscribers will experience an increase in the cost of telecom services:
- Calls: Prices will rise from ₦11 to ₦15.40 per minute, a 40% hike.
- SMS: Costs will jump from ₦4 to ₦5.60 per message, also a 40% increase.
- Data: The popular 1GB bundle, which currently costs around ₦1,000, will increase to at least ₦1,400.
This development comes amidst Nigeria’s food inflation rate hitting 39.93%, raising questions about the affordability of digital services in a challenging economic environment.
Why Now?
For over a decade, telecom operators have lobbied for tariff reviews, citing rising operational expenses. The approval comes after sustained losses in the industry:
- MTN Nigeria reported losses of ₦514.9 billion by Q3 2024.
- Airtel Africa recorded $89 million in losses in its fiscal year 2024, largely attributed to difficulties in the Nigerian market.
Despite the NCC’s historical focus on affordability, rising costs have made it difficult for operators to maintain services at current rates.
Official Statements
NCC’s spokesperson highlighted that the adjustments aim to balance the interests of both subscribers and operators. “This announcement will benefit the subscribers and operators because we have taken into account the proposals from the industry and the public,” the spokesperson said.
Similarly, the Minister of Communications, Dr. Bosun Tijani, expressed measured support: “We think there may be a need for [price adjustments],” signaling the government’s acknowledgment of the industry’s challenges.
The Bigger Picture: Impact on Digital Inclusion
While the telecom industry argues that cost-reflective pricing is essential for sustaining services and attracting investment, critics warn that the hikes could:
- Reduce internet usage.
- Widen the digital divide in a country striving for greater digital inclusion.
Affordable internet is key to enabling access to education, business opportunities, and information for millions of Nigerians. The price hikes could disproportionately affect low-income households, making digital access a privilege rather than a necessity.
Looking Ahead
The NCC is expected to release more details about the tariff changes soon. Stakeholders, including consumer advocacy groups, are keeping a close watch on how these adjustments will be implemented and their long-term impact on Nigeria’s telecom landscape.
For telecom users, 2025 will bring a new reality, emphasizing the need for budget adjustments to accommodate the higher costs of staying connected. As the industry adapts to these changes, one thing is clear: the decisions made today will shape Nigeria’s digital future.
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