50% tariff hike will affect calls, SMS, data rates
Following the recent approval by the Nigerian Communications Commission (NCC) for Telecommunication operators to implement a 50% hike on existing tariffs, MTN, Glo, Airtel among others would now implement the hikes on calls, SMS and data rates within the country.
Tribune Online reports that the NCC, in a statement on Monday, announced the approval of a request by the network operators to increase tariff, however, capped the hike at a maximum of 50%.
The Commission in a statement by its Director of Public Affairs, Reuben Muoka, said the adjustment, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability.
“These adjustments will remain within the tariff bands stipulated in the 2013 NCC Cost Study, and requests will be reviewed on a case-by-case basis as is the Commission’s standard practice for tariff reviews. It will be implemented in strict adherence to the recently issued NCC Guidance on Tariff Simplification, 2024.
“Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators. The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs while ensuring that the delivery of services to consumers is not compromised”, the NCC said in the statement announcing the approval.
New 50% tariff hikes
With the recent development, Nigerians are going to pay more for phone calls, SMS and data — for the first time in 12 years.
Going by the 50% hikes, the minimum acceptable price for phone calls will move from N6.40k to N9.60k per minute. On average, the cost of phone calls will rise from N11 to N16.50k per minute.
For SMS, Nigerians will pay a 50% increase on existing charges of N4 per SMS sent. Each SMS will now cost N6.
The 50% hike in data rate means Nigerians will see a hike in average price of N350 per gigabyte to N525 per GB.
Background
Prior to the recent approval by the NCC, telcos have been hammering about how an increase in tariffs is essential for the survival of the sector amidst current inflation and other economic challenges in the country.
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Tribune Online reports that the CEO of MTN Nigeria, Karl Toriola, had threatened that the telecom company may shut down if the tariff is not reviewed.
Toriola, who said this in October 2024 during a tour of MTN’s facilities by Fellows of the Media Innovation Programme in Ibeju-Lekki, Lagos, explained that the sector is facing severe financial strain, especially from escalating diesel prices required to power base transceiver stations.
“There should be no delusion; if the tariff doesn’t go up, we will shut down,” he said, underscoring the urgency of tariff adjustments to reflect current economic realities.
Like Toriola of MTN Nigeria, others including subscriber associations and network operators had also voiced their concern over the economic situation of the country and its direct impact on their operations.
One of them is the Chief Executive Officer of 9mobile, Obafemi Banigbe, who explained that the telecom industry has been badly hit by the current naira devaluation, forcing major telecom operators to declare significant losses.
Banigbe disclosed that the costs incurred by the telecom operators have significantly increased, citing TowerCos, which he said increased their prices by over 300 per cent, “this is an outside hike in diesel cost, insecurity, vandalism, maintenance of sites, infrastructure upgrades, among others,” the 9mobile CEO had said.
While the government agreed that the tariff hike was long overdue, the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, however, believed more needed to be done by network operators to improve service delivery.
“We have conducted a study on the Sustainability of the telecoms sector. The result should be out in about two weeks. This will reveal what we need to do to ensure we can support operators more for improved services.
“Beyond just the conversation, which is out there, which is about increasing the tariff, Yes, we think there may be a need for the hike, but lots more need to be done as a country to ensure that the sector is competitive and beyond just supporting them to be competitive, the government must support be investing in digital infrastructure as well,” Bosun Tijani stated this while speaking on a television programme.
By PRNigeria
