The cost of telecom services for Nigerians could soon increase, with a proposed tariff adjustment potentially raising the price of 1GB of data to N560.
In a recent appearance on national television, Minister of Communications, Innovation, and Digital Economy Bosun Tijani disclosed that although telecom operators were calling for a 100% tariff hike, the government was only considering a 30–60% increase.
He stated that the suggested rise is less than what operators had asked for and that it “should not be more than anywhere between 30 per cent and 60 per cent.”
The average cost of phone calls will go from N11 to N17.6 per minute, SMS rates will climb from N4 to N6.4, and 1GB of data will cost N560 instead of N350 if a 60% hike is granted.
Due to rising operational costs brought on by inflation, naira devaluation, and an unstable economic climate, telecom companies have been demanding pricing hikes.
It is still unclear if the Nigerian Communications Commission, the telecom regulator, will accept the telecom companies’ request for a 100% pricing rise, as disclosed by MTN Nigeria.
Karl Toriola, the CEO of MTN Nigeria, made the revelation, stating that the industry’s sustainability—which has been under a lot of financial strain because of growing operating expenses—required the proposed pricing increase.
However, Tijani insisted that a 100 per cent increase would be detrimental to citizens who rely heavily on telecom services.
“This sector is responsible for driving growth in our country, it will be harmful to our people to allow the MNOs to increase by 100 per cent,” he remarked.
The minister explained that the government was focused on striking a balance between protecting Nigerians and ensuring that telecommunications companies could continue to invest significantly in the sector.
He also underlined the necessity for effective restrictions to assure sustainable growth.
During a meeting with the minister, Airtel media spokesperson Femi Adeniran spoke on behalf of Dinesh Balsingh, CEO of Airtel Nigeria, and stated that the proposed tariff adjustments were required to counteract rising capital and operating costs.
The changes, he continued, were intended to benefit consumers and guarantee the industry’s long-term viability.
“The economic realities of rising operational and capital costs necessitated the proposed tariff adjustments.
“This is aimed to ensure the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers,” he said.
Although operators had asked for a 100% pricing rise, Dr. Aminu Maida, the Executive Vice-Chairman of the Nigerian Communications Commission, said it was unlikely to be granted.He stated that after continuing stakeholder engagements, the precise proportion would be revealed in a week or two.
In a parallel move, the National Association of Telecoms Subscribers denounced the proposed hike in communications rates, calling it “insensitive” and adding to the financial strain already placed on consumers.
Adeolu Ogunbanjo, president of NATCOMS, stated that if the telecom operators move forward with the raise without first looking into alternate revenue-generating strategies, the group would bring a class-action lawsuit.