The Nigerian Communications Commission (NCC)’s approval of a 50% increase in telecommunications Tariffs has ignited widespread reactions across the nation. While telecom operators view the decision as vital for sustaining the industry’s financial health, consumer advocacy groups have decried the move, citing its potentially adverse effects on affordability and accessibility. Gbolahan Awonuga, National Secretary of the Association of Licensed Telecommunication Companies of Nigeria (ALTON), described the hike as “a significant step forward for the sector,” although operators had initially sought a larger increment.
Telecom companies argue that rising operational costs, including naira’s devaluation, Infrastructure maintenance, and energy expenses necessitate the tariff adjustment. According to MTN Nigeria’s Chief Executive Officer, Karl Teniola, the increased charges will allow telecom operators to continue investing in network expansion, improve service delivery, and innovate within the industry. Without such adjustments, maintaining and upgrading the country’s telecom infrastructure would become increasingly difficult. However, critics of the tariff hike contend that it could severely impact low-income households and small businesses, which rely heavily on affordable telecommunications for daily operations and communication.
NATCOMS opposes increase and calls for a fairer approach.
Consumer groups, led by the National Association of Telecommunications Subscribers (NATCOMS), have vehemently opposed the increase. NATCOMS President Adeolu Ogunbanjo labelled the adjustment “excessive” and suggested a more moderate increase of 5–10% as a viable alternative. He also urged telecom operators to explore funding through initial public offerings (IPOs) and other Capital Market options rather than burdening subscribers. Ogunbanjo further highlighted unresolved debts between telecom companies and banks as a critical financial issue that should be addressed before imposing higher charges.
In its defence, the NCC emphasised the need to balance the interests of all stakeholders while supporting the industry’s sustainability. The Commission assured the public that it remains committed to fostering a telecommunications ecosystem that benefits consumers and operators alike, highlighting the importance of maintaining a robust infrastructure to support Nigeria’s digital economy. With the new tariffs, Nigerians are expected to pay ₦6 for SMS, compared to the previous ₦4, and ₦16.5 per minute for calls, up from ₦11. The cost of 1GB of data will rise to ₦431.25, a change that many fear could make Internet Access less affordable for low-income users. Despite these concerns, the NCC argued that the adjustments were necessary to ensure the sector remains viable and capable of meeting growing connectivity demands.
Prioritising affordability is crucial in Nigeria’s current economic climate.
Moreover, the tariff hike raises broader questions about the accessibility of telecommunications in Nigeria, particularly as these services have become indispensable for education, commerce, and social interaction. Critics argue that affordability should be prioritised to avoid widening the digital divide in a country where a significant portion of the population already struggles with economic challenges. Ensuring fair pricing while enabling industry growth will require innovative financial models and a more inclusive regulatory approach. With the new tariff regime, telecom operators are expected to generate up to ₦6.7 trillion annually in Revenue from calls alone, based on 2023 national telephone traffic data. This significant revenue boost highlights the importance of balancing financial viability with affordability for consumers.
Furthermore, the timing of the increase has raised concerns amid Nigeria’s current economic challenges. With Inflation reducing purchasing power, many fear the hike will add to the financial strain on low-income households already struggling to afford essential services. Small businesses, which rely heavily on affordable telecom services, are particularly vulnerable, as rising costs could hinder their operations and competitiveness. The Education sector, increasingly reliant on digital tools, may also face setbacks, as students and educators grapple with higher data prices. These issues highlight the importance of ensuring telecom services remain accessible despite the industry’s financial pressures.
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Ultimately, the government must play a critical role in addressing these concerns by mediating between consumer needs and industry demands. Transparent discussions with stakeholders and a review of the tariff structure could help find a balance that supports both operators and subscribers. Measures such as Subsidies for vulnerable groups or incentives for cost-efficient operations could provide relief while sustaining industry growth. Nigerians are hopeful for solutions that preserve the affordability of essential telecom services, ensuring the Digital Economy remains inclusive and resilient.