Nigeria’s telecom sector is bracing for a major shift as the government agrees to a tariff hike—though far less than the 100% increase proposed by mobile network operators (MNOs). Recent stakeholder meetings led by the Nigerian Communications Commission (NCC) and the Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, have clarified the government’s stance: a balanced adjustment that supports the sector’s sustainability without overburdening Nigerian consumers.
Why a Tariff Hike is Necessary
Telecom operators like MTN and Airtel have emphasized the dire need for a tariff review, citing rising operational and capital costs that threaten the sector’s long-term viability. According to MTN Nigeria’s CEO, Karl Toriola, the industry has been hit hard by inflation, naira devaluation, and soaring energy prices. For example, the cost of diesel has skyrocketed from N230 to over N1,000 per liter, and the official exchange rate has ballooned from N424.50 to about N1,550 by the end of 2024.
“These economic realities make the current tariff regime unsustainable,” Toriola stated, adding that telecom infrastructure, including base stations, now costs nearly four times as much to import compared to two years ago.
Airtel Nigeria’s spokesperson, Femi Adeniran, echoed this sentiment: “The proposed tariff adjustments are aimed at ensuring the long-term sustainability of the sector while unlocking significant benefits for Nigerian consumers.” Both companies argue that a tariff increase is not about profitability but about maintaining service quality and fostering digital inclusion.
The Government’s Balancing Act
Dr. Tijani emphasized the government’s commitment to striking a balance between safeguarding consumers and ensuring that telecom operators remain sustainable. “We want to protect our people, but we also need these companies to continue investing significantly,” he said during the stakeholder meeting.
The NCC and the Ministry have ruled out a 100% hike, instead working on a moderated adjustment that addresses both industry challenges and consumer concerns. Tijani assured Nigerians that the new tariffs would be transparent and easy to understand, responding to long-standing complaints about unclear pricing structures.
To achieve this, the NCC has asked telecom operators to adopt simplified billing templates that clearly outline charges for voice calls, SMS, and data usage. “We are moving away from the regime where you have a main rate and then a bonus rate. It makes it complicated for Nigerians to understand what they’re being charged for,” said NCC Executive Vice-Chairman, Dr. Aminu Maida.
Investing in Quality Connectivity
Beyond tariff adjustments, the government has recognized the need to invest more actively in telecom infrastructure, rather than leaving it solely in the hands of the private sector. “For meaningful connectivity, people want access to quality service,” Tijani noted, highlighting the importance of modernizing the country’s telecom network to meet global standards.
What to Expect Next
While the exact percentage of the tariff hike remains undisclosed, the NCC has promised to release a final decision within weeks after further consultations. The move reflects a broader effort to sustain the telecom sector, which is critical to Nigeria’s digital economy and consumer well-being.
For now, Nigerians can expect a moderate increase in telecom tariffs, balanced against the need for industry sustainability and improved service quality. As the sector adapts to these changes, the focus will remain on providing meaningful, affordable connectivity for all.
