Impact of Telco Tariff Hike Confirmed by FG: An In-Depth Analysis
The Federal Government of Nigeria has confirmed plans to increase telecommunications tariffs, though not by the 100% initially proposed by Mobile Network Operators (MNOs). Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, announced this development during a stakeholders’ meeting in Abuja on January 8, 2025.
Dr. Tijani emphasized that while the government acknowledges the financial challenges faced by telecom companies, it is committed to protecting consumers from steep price hikes. He stated that the Nigerian Communications Commission (NCC) is currently reviewing the proposed adjustments and will soon provide clear directives on the new tariff structure.
Although the exact percentage increase has not been disclosed, reports suggest it may be around 40%. This adjustment could result in call rates rising from ₦11 to approximately ₦15.40 per minute, SMS charges increasing from ₦4 to about ₦5.60, and the cost of 1GB of data reaching at least ₦1,400.
The Minister highlighted the importance of balancing consumer protection with the sustainability of telecom operators, ensuring they can continue to invest in infrastructure and provide quality services. He also noted that the government is engaging in ongoing consultations to finalize an acceptable rate adjustment, with the NCC expected to announce the new tariffs in the coming weeks.
This development comes amid rising operational and capital costs in the telecom sector, with major operators like MTN Nigeria and Airtel reporting significant financial challenges in recent years. The tariff increase aims to address these issues while striving to maintain affordability for consumers.