Businesses across multiple sectors are adjusting prices upward as inflation and foreign exchange volatility continue to raise operating costs.
The cost of electricity, data, fuel, and essential goods has surged by over 50 percent in the past year, forcing firms to pass on the burden to consumers.
The latest Consumer Price Index (CPI) released by the National Bureau of Statistics (NBS) showed that inflation declined to 24.48 percent in January, down from 34.48 percent in December 2024, before falling further to 23.2 percent in February.
Despite this, businesses are struggling with high input costs fueled by the depreciation of the naira, rising energy prices, and supply chain disruptions.
Firms Adjust Prices to Offset Rising Costs
Pay-TV provider MultiChoice announced a price increase for DStv and GOtv packages, citing higher content costs and economic pressures.
The new rates, effective March 1, 2025, saw the DStv Compact plan increase from N15,700 to N19,000, the Compact Plus move to N30,000, and the Premium subscription rise to N44,500.
The Federal Competition and Consumer Protection Commission (FCCPC) opposed the adjustment, but MultiChoice insisted that price restructuring is necessary to sustain operations.
Similarly, telecom companies received approval from the Nigerian Communications Commission (NCC) to increase tariffs by 50 percent, citing the need to recover rising costs and maintain network infrastructure.
According to MTN Nigeria, the adjustment is essential to sustaining investment in infrastructure and improving service quality.
The telecom giant reported N1.5 trillion in operational expenses (OPEX) for 2024, a 76.6 percent increase from N860.3 billion in 2023.
The surge in costs impacted its financials, contributing to a N400.4 billion loss due to foreign exchange exposure.
Energy Costs and Currency Volatility Hit Businesses Hard
The high cost of energy remains a major challenge. Diesel prices soared to N1,300 per litre in some parts of the country, forcing businesses to reduce operating hours and scale back production to manage expenses.
The federal government has warned that electricity tariffs may rise by over 65 percent as power distribution companies seek cost-reflective pricing to improve reliability and attract private investment.
The instability of the naira has further compounded financial strain on businesses. The currency fluctuated from being one of the best-performing currencies to the worst, dropping to as low as N1,800 per dollar at some points in 2024.
This volatility resulted in significant losses for companies with foreign obligations, leading to an exodus of multinationals from the Nigerian market.
Looking Ahead
With inflationary pressures and foreign exchange instability persisting, businesses are expected to continue adjusting prices in response to rising costs.
Consumers will likely face further price increases across various goods and services, while companies navigate operational challenges in a volatile economic environment.
