As telecommunications operators in Nigeria have commenced implementing the long-awaited 50 per cent tariff hike following its approval by the Nigerian Communications Commission, NCC, the lawmakers are having a second thought about its implementation, citing economic hardship.
Consequently, the House of Representatives has yesterday directed the NCC and the Minister of Communications, Innovation, and Digital Economy to suspend the tariff increase, reassessing that Nigerians cannot afford higher telecom costs amid rising inflation.
Although, the tariff hike had been cleared by the NCC and was scheduled to take effect nationwide from Monday 12th Feb, 2025. MTN, being the country’s largest telecommunications provider, had already started implementing the revised rates on the said date, while other—Glo, Airtel, and 9mobile—are yet to release their new pricing table.
A senior MTN executive, who chose to speak on condition of anonymity due to lack of authorization confirmed the development saying, “Yes, we’ve started updating our price lists. However, this process is gradual, and we haven’t completed it for all products yet.”
The tariff sighted are as follows; For example, the 1.5GB monthly plan, previously priced at N1,000, has now been replaced with a 1.8GB plan costing N1,500.
Others like the 15GB plan has jerked from N4,500 to N6,500, while the 20GB plan now costs N7,500, up from N5,500. Larger data bundles have seen even steeper hikes, with the 1.5 terabyte 90-day plan increasing from N150,000 to N240,000, and the 600GB 90-day plan rising from N75,000 to N120,000.
Accordingly, a source from MTN revealed that, “From tomorrow (Wednesday), prices of other MTN products will be adjusted. We are doing it in phases. Not all the prices went up, some didn’t change, and some are still below 50 per cent.”
However, a senior official at Globacom also hinted that while the company had not yet rolled out the new tariffs, there was a possibility of an update before the close of business on Tuesday.
Similarly, an executive at Airtel, who also spoke under the condition of anonymity, revealed that the tariff hike had been implemented across the industry.
He said, “As far as I know, every operator has commenced. This is an industry-wide decision, not an operator decision. Our prices have never been uniform, and the decision was made collectively on Monday. Every operator must have begun, even if the rollout is not yet fully completed.”
Consequently, the House of Representatives intervention is coming on the heel of a motion under urgent public importance raised by a member of the Peoples Democratic Party from Bayelsa State, Oboku Oforji during Tuesday’s plenary session.
The motion, titled “Need for the Nigerian Communications Commission not to approve the impending hike in the telecommunications tariffs,” sought to halt the tariff increase.
Oforji argued that while telecommunications companies justified the tariff hike by citing rising operational costs and the need for improved service delivery, the timing was particularly problematic given the economic hardship many Nigerians are currently facing.
He cited hat inflation in the country has hit an all time high record of 34.6 per cent in November 2024, triggered by the removal of fuel subsidies had already placed significant financial strain on citizens.
In his statement, “The House is aware that telecom operators have been advocating for this hike for over eleven years,” Oforji said.
“However, the National Association of Telecoms Subscribers has rejected the proposed increase, describing it as insensitive and a further burden on consumers who are already grappling with economic challenges and poor network service delivery.”
Oforji reiterated that the telcos must first address long-standing issues surrounding poor network service before implementing a price increase. He warned that the tariff hike would only exacerbate financial struggles for many Nigerians, deepening poverty and widening inequalities.
He demanded that “Affordable connectivity is a must for progress in critical sectors like digital banking, education, healthcare, agriculture and e-governance,” stressing that “informal sector workers who depend on affordable mobile data to access gig work opportunities may find it harder to stay connected.”
He further argued that small businesses “which rely heavily on affordable telecommunication for operations, marketing, and customer engagement, will face additional financial burden.”
Oforji said, “It is estimated that a 10 per cent increase in telecommunications costs would reduce small business profitability up to 7 per cent, potentially leading to the closure of businesses.”
Another lawmaker from Edo State, Billy Osawaru, throw his weight behind Oforji saying the service providers must first improve the quality of their services before coming up with a hike in tariff.
“Why is it that when things go wrong in this country, the poor people must suffer? First, it was the electricity tariff, now it is the turn of the telecom companies. Nigerians must enjoy these services.
“In the developed world, people are not used to carrying two mobile phones but this is the practice here. The thinking is if there is no service in one, you might be lucky with the other one. I believe that this increase in tariff should wait until services improve,” he said.
Meanwhile, Industry stakeholders, particularly the Association of Licensed Telecommunications Operators of Nigeria, ALTON, have defended the tariff increase, arguing that it is vital for the long-term sustainability of the sector.
Chairman of ALTON, Gbenga Adebayo highlighted that sustained underinvestment in the telecommunications sector could lead to an irreparable decline in services.
“I understand that a price review is necessary for the survival of the telecom sector,” Adebayo said on a call. “None of us can afford to see this sector collapse.
According to Adebayo, t he inability to recover investments in the telecom industry has made sustainability increasingly difficult. When there is prolonged underinvestment, it becomes virtually impossible to recover.”
While acknowledging the public’s concerns about inflation and the high cost of data, Adebayo stressed that the tariff hike was driven by the urgent need to keep the industry afloat.
However, the NCC through its Director of Public Affairs, Reuben Muoka, underscored that the decision aligns with its regulatory mandate under Section 108 of the Nigerian Communications Act, 2003.
However, the National Association of Telecommunications Subscribers voiced its opposition, threatening legal action against the approved tariff increase. NATCOMS argued that the hike be reversed to 10 per cent.
