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Telecom Operators in Nigeria Explain Why the Proposed Tariff Hike is Due and Inevitable

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Telecom companies argue that economic pressures such as inflation, foreign exchange volatility, and surging diesel prices make tariff hike unavoidable despite concerns from consumers. As a critical sector contributing nearly 20 percent to Nigeria’s economy and serving over 150 million subscribers, operators believe a tariff adjustment is the only viable path forward to ensure continued service delivery and infrastructure upgrades.

Subscribers have expressed dissatisfaction, pointing to long-standing issues with poor network quality, frequent call drops, and sluggish data speeds. Many consumers feel that before any price increase is implemented, telecom companies must improve the quality of their services. This sentiment has fueled calls for greater accountability from service providers, demanding that the tariff hike be accompanied by tangible improvements in service reliability and speed.

MTN Nigeria, Airtel, and other major operators defend the increase, emphasizing that operational costs have skyrocketed due to inflationary pressures and currency devaluation. The removal of fuel subsidies in 2023 further strained their finances, as diesel, a key input for powering telecom infrastructure, saw steep price hikes. Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria, remarked that the proposed increase is a step in the right direction for sustaining the industry. He noted that the higher tariffs would likely be implemented by the end of the first quarter of 2025, pending final regulatory approvals.

Telecom operators initially sought a 100 percent increase in tariff rates, which would have doubled the cost of voice calls from N11.00 to N22.00 per minute, SMS from N4.00 to N8.00, and a 1GB data bundle from N1,000 to N2,000. However, following negotiations led by Minister of Communications and Digital Economy Dr. Bosun Tijani, the government rejected this steep proposal, opting for a more moderate 40 to 50 percent adjustment. The minister explained that a full-scale hike would have worsened the financial burdens on Nigerians, whose purchasing power has been eroded over the past two years. He also reaffirmed the government’s commitment to balancing consumer protection with the economic realities facing the telecom industry.

Dr. Tijani, spearheading Nigeria’s broadband expansion project with support from the World Bank, assured stakeholders that the Nigerian Communications Commission (NCC) would issue detailed guidelines for implementing the new tariffs. The NCC has engaged consumer advocacy groups, including the National Association of Telecommunications Subscribers (NATCOMS), to discuss the implications of the increase. Adeolu Ogungbanjo, President of NATCOMS, previously threatened legal action to block the hike but acknowledged that, if properly managed, a 40 percent increase could enhance service sustainability and network investment.

The dire need for infrastructure upgrades has been a persistent challenge for telecom operators. Okonu Abdullah, Secretary General of the Private Telecommunications and Communications Senior Staff Association, attributed the poor network performance largely to insufficient investment. He cited frequent fibre-optic cable cuts as a major disruption, with industry reports highlighting an average of 43 incidents daily in 2023. Airtel Nigeria alone experienced 7,742 fibre cuts within six months, resulting in losses estimated at N35.4 billion. Abdullah advised telcos to collaborate more effectively with road contractors to prevent damage to critical infrastructure.

The tariff hike also aligns with broader efforts to safeguard telecom assets. President Bola Tinubu recently approved a critical infrastructure protection bill, making the vandalism of telecom infrastructure a criminal offense. This legal measure aims to curb the financial losses and service disruptions caused by cable vandalism, a problem that has plagued the sector for years.

While consumers remain wary of higher telecom costs, many acknowledge that improved services would justify the increase. Subscribers continue to call for reliable network coverage, faster internet speeds, and better customer service as part of the new pricing structure. As telecom operators move towards implementing the adjusted tariffs, they face heightened expectations to deliver on these demands and demonstrate that the tariff hike is indeed a necessary investment in the future of Nigeria’s telecommunications landscape.


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