The Nigerian Communications Fee (NCC) has permitted a long-pending proposal for telecom tariff hikes, with new charges for calls, SMS, and web bundles anticipated to take impact in January 2025. This marks the top of over a decade of lobbying by telecom giants like MTN Nigeria, Airtel, and 9Mobile, who’ve referred to as for value changes to mirror financial realities. Regardless of hovering operational prices pushed by headline inflation, telecom operators have been unable to lift costs for 11 years.
A spokesperson for the Nigerian Communications Fee (NCC) confirmed to TechCabal that additional particulars of the tariff changes can be shared in an official announcement.
“This announcement will profit the subscribers and operators as a result of we’ve taken into consideration the proposals from the business and the general public,” an NCC spokesperson instructed TechCabal.
In line with the prevailing proposals, telecoms tariffs may rise by as much as 40%. If adopted, the price of a cellphone name will improve from ₦11 to ₦15.40 per minute and SMS fees will rise from ₦4 to ₦5.60. For information plans, the value of a 1GB bundle will improve from ₦1,000 to no less than ₦1,400.
Minister of Communications, Innovation and Digital Financial system, Dr Bosun Tijani, acknowledged the necessity for value changes, stating: “We predict there could also be a necessity for that” in a December 20 interview on Come up TV.
The NCC is answerable for reviewing and approving tariffs changes within the telecommunications business. In October 2024, it rejected Starlink’s software to double subscription charges to ₦75,000. Whereas the fee goals to stability the monetary burden on subscribers, it additionally recognises that the business’s operational challenges may have an effect on service high quality and funding.
Rising meals inflation (39.93%) complicates the telecom tariff improve, with issues that it may cut back web utilization in a rustic the place digital inclusion is a precedence. Nonetheless, the present scenario has led to vital monetary losses for the telcos.
MTN Nigeria, as an example, reported a ₦137 billion loss in 2023, with losses increasing to ₦514.9 billion within the first 9 months of 2024. Airtel Africa additionally reported losses of $89 million in FY 2024, largely pushed by challenges in Nigeria.
Regardless of the grim outlook within the telecoms sector for a lot of the yr, President of the Affiliation of Licenced Telecommunication Operators of Nigeria (ALTON) Gbenga Adebayo argues that cost-reflective costs will incentivise funding and assist enhance high quality in the long term.