Nigerians May have to start paying more for calls and data if the federal government gives approval to the request by telecommunications operators to increase call and data tariffs.
A top official of one of the four big telecom companies said they may obtain the approval before the end of first quarter of 2025.
The top official who pleaded anonymity stated that the Nigerian Communications Commission (NCC) might give the telcos approval to hike rates of calls, SMS, and internet bundles.
Nigeria’s telecom giants such as MTN Nigeria, Airtel, and 9Mobile have been consistently calling for price adjustments to reflect economic realities in the country.
It was gathered that if the approval is given, it will mark the end of over a decade of their lobbying.
Telecom operators said despite soaring operational costs driven by inflation, they have not been allowed to raise prices in the last 11 years.
According to the top official, there is strong expectation that the approval to increase tariffs has been granted by the federal government.
He said information at his disposal revealed that the federal government would allow the telecom operators to do some upward review of tariffs by the first quarter of 2025, stressing that the sector is seriously bleeding.
The source contended that no new investment in the nation’s telecommunications sector because of soaring operating costs, adding that some of the companies are already making losses.
He called on NCC to guide against the imminent collapse of the sector, noting the possibility for the telecoms tariffs to rise by up to 40 per cent.
This means 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 20 interview, the minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, acknowledged the need for price adjustments.
The NCC is responsible for reviewing and approving tariff adjustments in the telecommunications industry.
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 grim outlook in the telecoms sector for much of the year, President of the Association of Licenced Telecommunication Operators of Nigeria (ALTON) Gbenga Adebayo posited that cost-reflective prices will incentivise investment and help improve quality in the long run.
