A telecom official has hinted that Nigerian should brace-up as Telecom operators have reached last stage of securing approval to increase their calls and data tariffs before the end of first quarter of 2025. An official who pleaded anonymity stated that the Nigerian Communications Commission (NCC) might give the telecoms approval to increase rates of calls, SMS, and internet bundles come next year.
If the approval scales through, it will actualise a decade of lobbying by telecom giants like MTN Nigeria, Airtel, and 9Mobile, who have been consistently pestering the Nigerian authority for price adjustments to reflect economic realities.
Coupled with the fact operational costs driven by inflation in the last two years has become a bend in the telecom operational cost as the telecom operators have not been allowed to raise prices in the last 11 years.
According to the source, “We strongly hope that our approval to increase tariffs has been granted by the federal government. We hear they will allow us to do some upward review of tariffs by the first quarter of 2025.
This sector is seriously bleeding; no new investment because of soaring operating costs. Some of us are already making losses. We just hope the sector will not be allowed to die”, the top official who pleaded anonymity told journalists in Lagos.
Meanwhile, it was learned that the Industry may raise tariffs to as much as 40% when the approval is granted.
Going by this analogy, it means that to make a one minute call may cost N15.40 up from N11 and SMS charges will rise from N4 to N5.60. For data plans, the price of a 1GB bundle will increase from N1,000 to at least N1,400.
In a December 20th interview, the minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, acknowledged the need for price adjustments, stating: “We think there may be a need for that”.
The NCC is the government office responsible for reviewing and approving tariff adjustments in the telecommunications industry.
Daily Trust reports that MTN Nigeria reported a N137 billion loss in 2023, with losses expanding to N514.9 billion in the first nine months of 2024. Airtel Africa also reported losses of $89 million in Financial Year 2024, largely driven by challenges in Nigeria.
Despite the harsh realities in the telecoms sector for much part of the year, President of the Association of Licensed Telecommunication Operators of Nigeria (ALTON) Gbenga Adebayo argues that cost-reflective prices will incentivise investment and help improve quality in the long run. s
The spokesperson for the Nigerian Communications Commission (NCC), Reuben Mouka could not be reached for confirmation of proposed tariff increase approval as of filing this report yesterday. Dailytrust.
