NCC Approves Telecom Tariff Increase: Calls, SMS, and Data Prices to Rise in Q1 January 2025

The Nigerian Communications Commission (NCC) has officially approved long-anticipated telecom tariff adjustments, with new rates for calls, SMS, and data services set to take effect in January 2025. This decision comes after more than a decade of lobbying by major telecom operators such as MTN Nigeria, Airtel, and 9Mobile, who have repeatedly sought price reviews to reflect rising operational costs and economic realities.

The tariff increase, which could see charges rise by up to 40%, is aimed at addressing the significant financial strain on telecom companies caused by inflation and rising costs of operations. The NCC revealed that the decision was reached after consultations with industry stakeholders and the general public.

This adjustment is expected to benefit both subscribers and operators by ensuring quality service delivery while addressing financial sustainability challenges faced by the telecom sector,” an NCC spokesperson said.

Proposed Tariff Changes

The following table outlines the expected adjustments to telecom service costs:

These adjustments are expected to reflect cost-reflective pricing, enabling telecom operators to sustain investments in network infrastructure and improve service quality.

Balancing Subscriber Concerns and Industry Needs

The Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, acknowledged the necessity of the price hike during a recent interview. “There is a need to address the operational challenges facing the telecom industry, and tariff adjustments are part of the solution,” he noted.

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Despite the need for these adjustments, concerns remain about the potential impact on subscribers, especially in a country grappling with rising food inflation of 39.93%. Industry experts worry that increased tariffs could reduce internet usage, potentially affecting digital inclusion efforts.

Financial Losses and Industry Outlook

Telecom operators have faced mounting financial losses over the past few years. MTN Nigeria reported a loss of ₦137 billion in 2023, which ballooned to ₦514.9 billion by the third quarter of 2024. Similarly, Airtel Africa recorded losses of $89 million for FY 2024, with challenges in the Nigerian market contributing significantly to the decline.

Gbenga Adebayo, President of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), argued that cost-reflective tariffs would encourage further investment in the sector and improve the overall quality of service in the long term.

While subscribers may face short-term financial strain due to the tariff hike, the NCC is confident that these changes will ultimately lead to better connectivity and enhanced service delivery for all Nigerians. An official announcement with further details is expected soon.

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