Nigerians will now pay N16.5 per minute for calls and N431.25 to subscribe to 1GB of data following a 50% tariff hike by the Nigerian Communications Commission (NCC) on Monday.
According to Interl Region, the latest 50 percent telecom tariff hike approval comes 13 years after NCC announced price template in 2013.
Minister of Communications and Digital Economy, Bosun Tijani, had hinted that telecom tariffs would go up by either 30 or 50 percent.
Specifically, the latest tariff hike approval would mean subscribers will sweat to courh out N16.5 per minute for calls from N11, the cost of SMS to N6 from N4, and the cost of 1 gigabit of data – N431.25.
With the highly reduced purchasing power of consumers ocassioned by rising inflation, consumers may have to peace up more to fix into the social and economic stratification emerging in Nigeria.
According to some concerned Nigerians, the scenario of continued cost of living would mean, not only is the middle class extinguished, but also the despondent lower class may find it difficult to breadth, a situation that is threatening their continued existence.
However, Reuben Mouka, the NCC director of public affairs in a statement said:
“The adjustment, capped at a maximum of 50 percent of current tariffs, though lower than the over 100 percent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,”
Consequently, it was gathered that telcos may rake in about N6.7 trillion annually in revenue from calls only with the new tariff regime; this is because 2023 national telephone traffic data showed that total outgoing telephone traffic was 205.3 billion minutes, while incoming traffic stood at 203.2 billion minutes.
According to the platform, the latest 2023 Subscriber/Network Performance Report by the NCC showed that in 2023, total outgoing telephone traffic was 205.3 billion minutes, while incoming traffic stood at 203.2 billion minutes.
The report read, “As of December 2023 total outgoing Local and National Traffic was 205,298,114,995.11 minutes while Total incoming Local and National Traffic was 203,187,588,876.00 minutes. MTN had the highest total outgoing and incoming Traffic of 122,667,600,437.00 and 123,762,501,615.00 minutes respectively in 2023.”
This implies that Nigerians spent about 408.5 billion minutes making local calls in 2023.
Since there was no fresh data yet for 2024, the analysis was based on the available data for 2023, which might vary for 2025.
This analysis also excluded international calls, although Nigerians spent 1.5 billion minutes on international calls in 2023, according to the NCC.
Further analysis by the platform showed that MTN led the market, recording 122.7 billion minutes of outgoing traffic and 123.8 billion minutes of incoming traffic.
At the new rate of N16.5 per minute, MTN’s combined revenue from outgoing and incoming calls is projected to exceed N4tn, making it the primary beneficiary of the tariff adjustment and accounting for over 60 per cent of the market’s total revenue.
Airtel is expected to follow with a projected revenue of approximately N1.78tn, reflecting its strong share of both outgoing and incoming traffic.
Glo, the third-largest operator, is estimated to generate N536.2bn.
Smaller players, including Smile and Ntel, are expected to earn N5.7bn and N13.1bn respectively, affirming their minimal market influence.
9mobile (EMTS) is likely to generate about N105.6bn from its traffic volumes.
Nigerians To Drag FG To Court
Meanwhil, the President of the National Association of Telecoms Subscribers, Adeolu Ogunbanjo, has rejected the imposition of a new duty on the telecom sector, warning that it would worsen the taxation burden and negatively impact Nigerians.
“There was no agreement reached at the meeting with stakeholders,” Ogunbanjo said. “We presented our case, but nothing concrete was resolved during the meeting with the NCC in Abuja.”
The association has vowed to take legal action if the proposed duty is implemented without addressing subscribers’ concerns.
Ogunbanjo noted that while the association might accept a tariff increase of 5 to 10 per cent, anything beyond that would be unacceptable.
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“If this new duty is implemented, we will take the matter to court. This kind of policy cannot stand,” he declared.
He suggested alternative funding mechanisms for telecom operators, such as raising capital through Initial Public Offerings.
“Let Nigerians be part of the business by buying shares. MTN has already gone public, and others can follow. This way, operators can raise funds without overburdening subscribers,” he said.
Ogunbanjo also highlighted the critical role the telecom sector plays in Nigeria’s economy, noting its contribution to foreign direct investment and GDP growth.
“Apart from oil, telecommunications is the only sector attracting significant investment. We cannot allow policies that will collapse the industry,” he stated.
He appealed to the minister to reconsider policies that could further impoverish Nigerians, citing poor electricity and economic conditions as ongoing challenges.
“A 50 per cent increase will cripple Nigerians. We will not accept this. A moderate increase is enough, and operators should explore other ways to generate funds,” Ogunbanjo insisted.
The Association of Telephone, Cable TV, and Internet Subscribers of Nigeria stated that with such an increase in tariff, there is a need for significant improvements in service quality.
