Phone and data charges in Nigeria are set to rise following approval from the Nigerian Communications Commission (NCC) for telecommunications companies to increase their tariffs. The proposed adjustment will lead to a 50% increase in the cost of calls and data services.
The NCC attributed this hike to rising operational costs faced by telecommunications companies. According to a statement by NCC spokesperson Reuben Muoka, the tariff adjustment aligns with Section 108 of the Nigerian Constitution, which governs telecommunications equipment and infrastructure. Muoka explained that telecom operators initially requested a 100% increase, but the NCC approved only a 50% adjustment.
This increase will affect consumers purchasing data plans and airtime for calls. For instance, calls previously costing ₦11 per minute will now cost ₦16.50, while sending a text message will increase from ₦4 to ₦6. Similarly, a data bundle priced at ₦1,000 will now cost ₦1,500.
Telecommunications expert Mohammed Bashir noted that Nigerians currently enjoy some of the lowest call and data rates in Africa. However, he acknowledged that the timing of the increase could be challenging for many Nigerians.
Airtel CEO Dinesh Balsingh defended the tariff hike, stating it is necessary for the sustainability of the telecommunications sector. Balsingh highlighted a 300% surge in operating costs over the past two years, driven by factors such as the depreciation of the Naira and a sharp rise in diesel prices, which have gone from ₦230 to ₦1,000 per litre. These challenges have placed significant financial strain on telecom companies. For example, MTN reported losses of ₦514.9 billion in the first nine months of 2024, while Airtel recorded a $89 million loss in 2023.
Despite the justification for the increase, many Nigerians have expressed their dissatisfaction. Businessman Funmi Adejumo from Lagos criticized the hike, arguing that while Nigerians are told they pay the lowest rates in Africa, the new tariffs will make data and calls unaffordable for many.
On the other hand, economist Aliyu Ilias emphasized that telecom companies cannot sustain operations without raising tariffs. A report by the International Telecommunication Union (ITU) revealed that Nigerians currently pay $2.35 for 2GB of data, compared to $2.66 in Ghana, $2.92 in Kenya, and $7.98 in South Africa. While the price increase may help telecom operators manage rising costs, its impact on consumers remains a contentious issue.
